West Palm Beach: The Underdog City Now Winning Big with Luxe Towers and Big-Ticket Investments

Stephen Ross, the visionary behind Related Companies, now views West Palm Beach as his firm’s golden opportunity—28 years ahead of its time. The Florida city, once a tough sell for developers, is now undergoing a stunning transformation thanks to Ross's ambitious plans, which include a trio of sleek office towers, ultra-luxurious condos, and a future university.

This urban renaissance was spotlighted in April when Ross and West Palm Beach Mayor Keith A. James celebrated the groundbreaking of the South Flagler House, an opulent new condo project. Both are key figures in elevating West Palm Beach into a major South Florida hub for commerce, culture, and high-end living.

In the past, Ross's efforts to lease retail space downtown were a struggle due to seasonal turnover. “You couldn’t keep tenants because there wasn’t enough year-round business,” recalls Kenneth Himmel of Related Ross, the Florida arm of New York’s Related Cos. “Everything was fine in winter, but come summer, it was a ghost town.”

But West Palm Beach has evolved dramatically. While Miami often steals the spotlight with its glitzy developments, the real post-COVID transformation is happening just 70 miles north. The city of 124,000 is fast becoming a magnet for the wealthy, drawing comparisons to its upscale neighbor, Palm Beach.

“It’s like West Palm Beach has suddenly become the new Palm Beach,” says Rick Rose, a local tour guide and vacation rental owner. His business has boomed, doubling the number of homes he manages for investors as the city’s appeal skyrockets.

The influx of millionaires has been staggering. Over the past decade, the number of millionaires in Palm Beach and West Palm Beach combined has surged by 93%, trailing only Austin and Scottsdale for growth in the U.S., according to Henley & Partners. This area has outpaced traditional high-net-worth havens like Greenwich and Darien.

The migration of wealthy newcomers has pushed Palm Beach County to the top of the national affluence rankings. Between 2020 and 2021, new residents contributed $7.03 billion in taxable income—more than any other place in the U.S., says the Economic Innovation Group. In 2022, those moving to Palm Beach County had an average income of $260,100, significantly higher than Miami-Dade’s $175,600, according to the Miami Association of Realtors.

These new arrivals aren’t just buying vacation homes; they’re relocating their businesses and staff, fueling a surge in office space demand and inspiring new luxury developments along the waterfront. West Palm Beach is also set to welcome a Vanderbilt University satellite campus, with a $520 million investment in a graduate school focused on business and AI. This move is expected to create 35,000 jobs over the next 25 years, with local investors like Ross contributing $300 million to the project.

Mayor Keith James acknowledges the strange silver lining of COVID, saying, “I hate to use the words ‘good’ and ‘COVID’ in the same sentence, but COVID has been good to the city.” The pandemic's impact has turned temporary relocations into lasting economic growth, with firms like Goldman Sachs, BlackRock, and Point72 establishing a presence in West Palm Beach.

JPMorgan Chase has also announced plans to open a new 13,000-square-foot office in Related’s 360 Rosemary tower. Meanwhile, Richard Born, known for his New York hotels, is making his first foray into Florida with a 201-room hotel in West Palm Beach’s Nora district.

Nora, named for its location along North Railroad Avenue, is transforming into a bustling hub with new dining and retail options. From New York’s H&H Bagels and Van Leeuwen Ice Cream to Pastis and Mint boutique, the area is attracting upscale brands, adding a familiar touch for Northeast transplants.

The city’s residential market has similarly undergone a dramatic shift. Just five years ago, a luxury home in West Palm Beach was defined as anything above $680,000. Today, that threshold has soared to $1.75 million, reflecting the city's rapid transformation.

Developers are taking notice. Savanna, a New York investment firm, is investing in a $2 million-per-unit condo project, Olara. Miami’s David Martin is teaming up with the Cipriani family for a luxury hotel and residence project, Mr. C. Hotel & Residences. Meanwhile, Related Ross is introducing the 108-unit South Flagler House, with prices reaching up to $72.5 million

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Stephen Ross’s vision of West Palm Beach as a prime destination is finally coming to fruition. “We saw this 28 years ago,” Ross reflected at the South Flagler House groundbreaking. “But unfortunately, we had to wait a long time.”

With its new status as a hub of luxury and commerce, West Palm Beach is proving that good things really do come to those who wait.

If you are planning to move into the amazing city of opportunities - West Palm Beach - make sure to contact The Mastropieri Group, Realtors, with all your needs at 561-544-7000!