Wall Street South Gains Steam in West Palm Beach

Palm Beach may be distinctive nationwide for its glitzy estates, long Municipal Beach, boutiques, galleries and its iconic Clock Tower. But when it comes to business these days, the action is in West Palm, the once-neglected stepchild of the Palms, as the area is known.

Prestigious Wall Street firms such as Goldman Sachs have opened offices in West Palm. Powerful real-estate tycoons, such Steve Ross and Ken Himmel, are said by Palm Beach business executives to be a driving force behind West Palm’s transformation. Between the two, they have eight commercial and four residential properties either open or in the pipeline in West Palm. They are also developing the neighborhood’s central retail area, called The Square. Palm Beach County itself is also growing.

“The current indicators for the county point to a vibrant and healthy economy, one that is growing and thriving,” said Judy Fancher, of Palm Beach County’s Economic Development and Research office.

The county, she noted, is one of only 22 nationwide to earn a AAA bond rating, the highest possible, by all three major rating agencies: Moody’s, Fitch and Standard & Poor’s. Fitch says the county is one of the country’s wealthiest, with per capita personal income levels about 50 percent higher than state and national averages. It has a year-round population of about 9,000 and an unemployment rate of just 2.3 percent, among the lowest in the country.

Palm Beach is of course known for its wealth. In 2017, Forbes reported Palm Beach was home, or at least home part of the year, to 30 billionaires, and ranked as the 27th richest place in the country. The late President John F. Kennedy had a winter home there, and former President Donald Trump’s Mar-a-Lago has become famous worldwide.

But much of the business activity in the Palms, is taking place in West Palm, which had been a struggling part of town. Now, developers say, space in the buildings built by Ross and Himmel, are being grabbed by well-heeled New York City restaurants, including Milos, Felice and Harry’s, a Wall Street pub and hangout.

“We are providing a lifestyle and trying to make Palm Beach a model community for the U.S,” Ross said in an interview. Ross has been working to develop the area since the mid-1990s. His firm, Related, won a request-for-proposals to develop the area back then.

“Everyone says how lucky we area,” Himmel said. “But we were already here to take advantage of the opportunities.”

Along with commercial and residential buildings, top medical providers such as NYU Langone and Mount Sinai are taking space in West Palm.

Some locals, city officials said, have expressed concern about over-development. But Ross and Himmel say landscaping green space and art are being added to the area. Developer Jeff Green has said he is constructing affordable housing as well.

Ross and Green have donated land and money to the University of Florida, which is building a one-million-square-foot satellite campus for graduate students.

“The grad school will be a total game changer,” Green said. He is building two commercial and residential towers at One West Palm Beach that, one built, will be the highest in the area. He said he looks forward to students remaining in the area and opening businesses.

Another developer, Ned Grace, of NDT, is part of a group behind a project called North of Railroad Avenue, a 40-acre neighborhood with a cobblestone main street and 15 acres of new development, in West Palm.

Developer Andrew Kurd of Savanna, is developing West Palm’s north end, including a luxury tower, to be called Olara. He is confident his project will be a success. His three competitors in the area – Bristol, La Clara and Forte – area already sold out.

One developer, Kenneth Baboun, said he does not think builders have yet caught up with the demand for apartments and commercial space.

Business experts are bullish on the entire Palm beach area.

A survey by Kaufman Rossin, the largest independent CPA firm in Florida, in partnership with the Business Development Board of Palm Beach County, found that 65 percent of 500 business owners polled, believe commercial real-estate demand “looks solid.” About 29 percent of those surveyed said they will be increasing demand for commercial property. The survey found also that businesses are planning to hire and invest in their employees. Most said they think the health of their business is strong. Some 63 percent predict that the health of their business will be even better in the coming months.

“What makes Palm Beach stand out is the dramatic evolution in the market,” said Rick Slater, Kaufman Rossin’s managing partner for Palm Beach and Broward. “We have a great tax structure and economic development ethos, and the feedback we received in this survey reinforces that businesses in Palm Beach are well-suited for further growth.”