Author: Julianne Dwyer

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Following the Rooftops: Why Palm Beach CountyRetail is Defying National Trends

Headlines from CNBC caution that the growing corporate rush to the Sunshine State is finally slowing down as migration patterns across the country begin to level out. However, looking at the entire state of Florida through a generic lens misses what is actually occurring, right here in Palm Beach County. Our local market isn’t experiencing a slowdown, it is experiencing a shift toward maturity, changing the rules for how landlords and tenants must approach commercial real estate in 2026.

Is the South Florida commercial real estate boom officially over? If you only read the national news, a recent CNBC report tracking domestic moving data might make you think the frenzy is winding down. However, in Palm Beach County, the reality tells a completely different story of low vacancies, rising retail rents, and a race to the best spaces available.

Retail Still Follows the Rooftops

While migration into Florida has become more balanced, Palm Beach County retailers remain focused on a much simpler metric: where affluent consumers already live. The article notes that commercial real estate investors can no longer assume that broad migration trends will automatically drive demand everywhere. Instead, success depends on identifying markets with durable fundamentals and established consumer bases.

Palm Beach County checks those boxes. Retail vacancy currently sits at an exceptionally tight 3.8%, while average asking rents have climbed to roughly $38.54 per square foot NNN. In the county’s most desirable neighborhoods, the competition for space is even more intense. Boca Raton retail centers are averaging approximately $44 to $49 per square foot, while Delray Beach locations are approaching $46 per square foot as national brands and expanding local operators aggressively pursue available storefronts.

The reason is straightforward: the residents who relocated to South Florida over the past several years didn’t simply pass through, they planted roots. These communities continue to attract high-income households with substantial discretionary spending power, creating consistent demand for restaurants, fitness concepts, luxury retailers, medical users, and service-oriented businesses. In commercial real estate, one rule continues to win regardless of economic cycle or migration trend: retail follows the rooftops. As a result, Palm Beach County remains home to consumers who possess both the income and the desire to spend.

Office Demand Has Shifted from Quantity to Quality

The CNBC report also highlights a reality many investors have learned firsthand: not every commercial property benefits equally from population growth anymore. The days of buying virtually any office building in a fast-growing Southern market and expecting automatic appreciation are largely over.

Today’s tenants are significantly more selective, forcing owners to differentiate their properties through quality, amenities, and location.

Downtown West Palm Beach perfectly illustrates this trend. Despite widespread concern over office demand nationally, the market continues to outperform many major metropolitan areas. Vacancy in the downtown core fell to 12.7% during the first quarter of 2026, while overall CBD asking rents climbed to $95.51 per square foot. Premium Class A properties command even higher rates, averaging $117.52 per square foot, as companies continue to compete for the region’s highest-quality office space.

Trophy buildings and luxury office towers routinely command even higher rates, reflecting strong demand from companies seeking premier environments for their employees and clients.

Much of this activity is driven by firms relocating from New York, California, and other high-cost markets. These businesses are not looking for generic office space. They want modern Class A buildings with high-end finishes, walkable locations, premium amenities, hospitality-inspired services, and environments that help attract top talent. As a result, the best properties continue to lease aggressively.

For owners of older suburban office buildings, however, the challenge is different. Average space is no longer enough in an increasingly mature market. Landlords who want to remain competitive must actively reinvest in their properties through renovations, upgraded common areas, technology improvements, and enhanced tenant experiences. The market is still rewarding quality, but only for those willing to provide it.

Why Professional Representation Matters More Than Ever

As Palm Beach County’s commercial real estate market becomes both tighter and more selective, the margin for error continues to shrink for landlords and tenants alike.

For property owners, rising asset values create opportunity, but they also create responsibility. Insurance costs, maintenance expenses, labor costs, and regulatory requirements continue to put pressure on operating budgets. Professional property management is no longer a luxury—it is a critical component of protecting profitability. Strong management helps landlords control expenses, maintain tenant satisfaction, maximize occupancy, and preserve the long-term value of their investment.

Tenants face an entirely different challenge. In a retail market with vacancy below 4%, landlords possess significant negotiating leverage. Businesses searching for space often find themselves competing for a limited number of quality locations while navigating increasingly complex lease terms. An experienced tenant representative can uncover opportunities that never reach the public market, negotiate favorable build-out allowances, secure flexible lease provisions, and help protect against costly long-term obligations.

At Cohen Commercial Realty, we help clients navigate both sides of today’s market. Whether through professional property management, landlord leasing services, or tenant representation, our role is to provide the expertise and market knowledge needed to make informed decisions in an increasingly competitive environment. As Palm Beach County moves beyond the rapid growth phase and into a more mature cycle, strategic guidance has never been more valuable.

Sources

    • CNBC, “Americans Are Changing Where They’re Moving. Here’s How That Could Affect Commercial Real Estate,” January 7, 2026. [nmrk.com]
    • Cushman & Wakefield, Palm Beach Retail MarketBeat Q1 2026.
    • Cushman & Wakefield, Palm Beach Office MarketBeat Q1 2026.
    • Newmark, Palm Beach Office Market Report Q1 2026. [cnbc.com]
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    Follow the Land: What South Florida’s Six-Year High in Land Sales Tells Us About Where Development Is Heading

    South Florida’s land market just posted its strongest numbers since 2019. According to data released this month by the Miami Association of Realtors, wealth migration and sustained population growth drove land sales across the region to a six-year high — with Miami-Dade leading the charge at $2.1 billion in volume, a 62% jump from the prior year, and Palm Beach County topping all counties at $3.9 billion. The largest single land deal in Palm Beach County was the acquisition of a vacant commercial parcel in West Palm Beach for $87 million, or $2,015 per square foot.

    Those aren’t just impressive numbers. They’re a map of where South Florida commercial real estate is heading next.

    Miami-Dade Is Running Out of Room

    The story behind the surge in land activity is, in large part, a story about scarcity. Miami-Dade is geographically boxed in — the Atlantic Ocean to the east, the Everglades to the west. There is no horizontal expansion left. As one industry expert put it plainly: “In Miami-Dade, we’ve run out of land east and west of us. West of us is the Everglades, so for density purposes, we really need to go vertical.”

    That constraint is showing up directly in the commercial market. Industrial vacancy rates in core Miami-Dade submarkets like Doral and Medley remain among the tightest in the nation — holding around 3–4% — while average asking rents for warehouse space have climbed to $16–$20 per square foot NNN. Developers searching for large-format industrial sites are increasingly filling in man-made lakes and rock pits just to find buildable land. When the workaround for land scarcity involves filling in a lake, you know the market has reached a structural limit.

    The result is predictable: capital and developers are moving north.

    Broward and Palm Beach Are the Next Frontier

    The pressure migrating out of Miami-Dade is landing squarely in Broward and Palm Beach counties — and the land data confirms it. Lennar’s publicly traded land bank paid $50 million for a vacant commercial site in Pompano Beach for a mixed-use residential project. Industrial developers are actively pursuing sites along I-95 and the Turnpike corridors where land is still available and land costs, while rising, haven’t yet hit Miami-Dade levels.

    For industrial and logistics specifically, Broward’s positioning is compelling. The county sits between two of the busiest ports in the country — PortMiami and Port Everglades — with direct access to major interstate infrastructure. As e-commerce demand, tourism supply chains, and population-driven consumption continue to grow across the tri-county area, the need for last-mile distribution and warehousing isn’t slowing down. It’s just shifting north.

    Palm Beach County, meanwhile, is seeing a different type of land demand — one driven by the corporate and residential migration story we’ve covered in recent months. Commercial land in West Palm Beach is now trading at over $2,000 per square foot in top locations. That’s not a market in the early stages of discovery. It’s a market that has arrived, and land sellers know it.

    What This Means for Commercial Real Estate Investors and Occupiers

    A few clear implications emerge from where the land market stands today.

    If you’re an investor or developer looking for value-add or ground-up opportunities, the window in core Miami-Dade submarkets is largely closed. The land isn’t there, and where it is, it’s priced for perfection. The better opportunity — especially for industrial, flex, and mixed-use — is in the Broward and northern Palm Beach corridors where infrastructure is strong, population growth is accelerating, and land pricing still offers meaningful upside.

    If you’re a business owner or tenant evaluating locations, the same logic applies. Companies being priced out of Miami-Dade for warehouse, distribution, or light industrial space have real alternatives in Broward that don’t require sacrificing location quality or logistics access. Pompano Beach, Deerfield Beach, and the I-95 corridor in western Broward are worth a serious look right now — before the land story there looks the same as Miami-Dade does today.

    The six-year high in South Florida land sales isn’t just a headline. It’s a signal that serious capital is betting heavily on this region’s continued growth — and making moves to get ahead of the next cycle before the land runs out there too.

    References:

    https://www.miamirealtors.com/2026/05/08/wealth-and-population-growth-push-south-florida-land-sales-to-six-year-high/8
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    Wall Street South Gets a Tech Upgrade: What West Palm Beach’s Boom Means for Commercial Real Estate

    West Palm Beach has spent the last few years building a reputation as Florida’s financial hub, a place where hedge funds, private equity firms, and wealth management offices relocate from New York and call it a lifestyle upgrade. But something bigger is happening now. The city isn’t just attracting capital anymore. It’s attracting companies that build things, and the commercial real estate market is responding accordingly.

    When AI software giant ServiceNow announced it was leasing 200,000 square feet of Class A office space at Related Ross’s 10 CityPlace development in downtown West Palm Beach, it sent a clear signal to the market. This isn’t a financial services firm parking a satellite office near the beach. ServiceNow, one of the fastest-growing enterprise AI companies in the country, is building a regional headquarters here, with plans to grow to 850 jobs paying an average of $170,000 by 2030.

    The Anchor Tenant That Changed the Conversation

    The deal also includes an AI innovation center and startup accelerator, which means West Palm isn’t just gaining a tenant; it’s gaining an ecosystem anchor. That’s a different category of commitment, and it draws a very different chain of demand behind it.

    Wells Fargo followed, signing a 50,000-square-foot lease at One Flagler for its wealth management headquarters. Goldman Sachs, BlackRock, JP Morgan, and Point72 are already in the market. Related Ross is now managing nearly 2 million square feet of office space in the city, with another 3.5 million in development, and current projects are already approximately 70% leased.

    What’s Actually Driving This

    The honest answer is that it’s not just tax advantages, though those matter. What’s driving sustained corporate commitment to West Palm Beach is a deliberate, decades-long strategy to build the infrastructure that talent actually needs — and that companies look for before they sign a lease.

    Cleveland Clinic is leasing 120,000 square feet at 15 CityPlace for a new outpatient facility. Vanderbilt University is opening a graduate campus focused on business and artificial intelligence in 2028. Eataly has opened at CityPlace. Luxury residential towers are filling up. A fully autonomous electric shuttle is already running in the city center.

    Stephen Ross, the developer behind much of this, put it plainly: “Companies only go where the talent is or wants to be.” What West Palm has understood — and what a lot of secondary markets still haven’t — is that you have to build for the employee before you can close the corporate deal.

    What This Means for Commercial Real Estate

    For CRE investors and occupiers, the West Palm Beach story offers a few clear takeaways.

    The office market here is not following the national narrative. While coastal gateway cities are still wrestling with remote work vacancies, West Palm is posting strong absorption numbers in Class A product. When quality tenants compete for quality space, values hold. The demand being created by tech and financial relocations is real, it’s employment-dense, and it’s sticky.

    Mixed-use is the format driving the most activity. CityPlace’s model — where office, retail, hospitality, and residential stack on top of each other in a walkable environment — is the template that’s attracting the tenants’ others can’t close. When companies evaluate locations for headquarters or regional offices, they’re not just underwriting the lease. They’re underwriting the lifestyle they can offer their employees. Mixed-use environments win that pitch.

    Retail and hospitality in the submarket stand to benefit significantly. Eight hundred and fifty ServiceNow employees, plus thousands of finance workers, spending their lunch hours and weekends somewhere — that demand has to go somewhere. The submarkets surrounding CityPlace, Clematis Street, and the waterfront are well-positioned to absorb it.

    The Broader Signal

    West Palm Beach is proving something that matters beyond Palm Beach County: when a submarket makes a sustained, coordinated investment in the things that talent values — healthcare, education, walkability, culture, quality housing — corporate demand follows. It doesn’t happen overnight, and it doesn’t happen accidentally.

    For commercial real estate professionals operating in South Florida, the North End of West Palm Beach is worth watching closely right now. The infrastructure is in place, the anchor tenants are signed, and the pipeline is full. The question isn’t whether this market has arrived — it’s which opportunities are left before the market fully prices it in.

    References:

    Thursday, April 30, 2026: South Florida real estate market articles

    https://www.floridatrend.com/regions/southeast/2026/01/26/2026-economic-outlook-southeast

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    When the Smoke Clears: What South Florida’s Wildfires Tell Us About Commercial Real Estate Risk

    Earlier this month, a wildfire ripped through more than 11,000 acres of the Everglades along the Miami-Dade and Broward County line. The Max Road Fire sent smoke billowing over Pembroke Pines, forced road closures for days, and came within 40 feet of at least one local business. By the time containment reached 80%, the headlines had already started to fade — but for anyone in commercial real estate, the story is far from over.

    This Isn’t a One-Time Event

    The Everglades are not a distant wilderness. They border some of South Florida’s fastest-growing commercial corridors, and during periods of drought, they can ignite with alarming speed. Florida’s wildfire season peaks from February through June, and 2026 has brought some of the most extreme drought conditions in recent memory. For commercial property owners and investors near western Broward or the Homestead corridor, this is a material risk factor — not background noise.

    Insurance and Due Diligence Are Evolving

    Florida’s property insurance market was already under pressure this spring. Carriers have been exiting the state, premiums have spiked, and wildfire risk — long dismissed as a Western U.S. problem — is now part of the underwriting conversation here. If you own or are evaluating a commercial property west of I-75 or near the Everglades perimeter, it’s worth a direct conversation with your broker about how that exposure is being priced.

    Due diligence needs to keep pace as well. The wildfire knocked out power along Krome Avenue and closed roads for days — real disruptions for businesses that depend on supply chain access and continuous operations. Beyond flood zone classifications, today’s CRE analysis in South Florida should include wildfire risk mapping and proximity to undeveloped land, especially for industrial and logistics properties being pushed westward as land costs rise in established corridors.

    Where Opportunity Still Lives

    Risk and opportunity move together. The same wildfire event that raises flags in fringe submarkets reinforces the value of well-located infill properties in places like Dania Beach, Pompano Beach, Doral, and Hialeah. When environmental disruptions prompt buyers and tenants to reassess, demand for proven, infrastructure-supported commercial space tends to strengthen.

    South Florida remains one of the most dynamic CRE markets in the country. But the risk landscape is evolving, and this month’s smoke was a reminder that smart due diligence here means looking in more directions than ever before.

    References:

    https://www.foxweather.com/weather-news/everglades-wildfire-miami-metro-broward-county

    https://www.cbsnews.com/miami/news/west-broward-wildfire-burns-more-than-11000-acres-as-crews-battle-fast-moving-flames

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    Why South Florida Continues to Attract Real Estate Investors

    South Florida has firmly established itself as one of the most desirable real estate investment markets in the country. A combination of strong population growth, international demand, and a pro-business tax environment continues to draw investors seeking both stability and upside. With no state income tax and relatively landlord-friendly policies, the region offers a level of flexibility that’s increasingly rare in major U.S. markets.

    Beyond the financial incentives, South Florida’s global appeal plays a major role. The area attracts a steady flow of new residents, seasonal visitors, and foreign capital—all of which contribute to consistent demand across residential and commercial asset classes.

    Limited Supply, Long-Term Value

    A key factor driving South Florida’s long-term value is its geographic constraint. With the Atlantic Ocean to the east and protected land to the west, there’s only so much space to build.

    This natural limitation, combined with continued demand, helps support property values and creates a strong case for long-term appreciation. For investors, this often shifts the strategy from short-term cash flow to long-term asset growth and positioning in high-demand corridors.

    Investment Strategies That Work

    South Florida is not always a traditional cash-flow-driven market, especially in high-demand areas. Instead, many investors focus on strategies like long-term holds, value-add opportunities, and repositioning under-performing assets.

    Commercial investors, in particular, benefit from identifying properties in emerging submarkets or growth corridors where population and business expansion are accelerating. Mixed-use developments, retail repositioning, and small-bay industrial assets have all gained traction as demand continues to evolve.

    Understanding how to align the right strategy with the right asset is key to maximizing returns in this market.

    What Investors Need to Watch

    While the opportunities are strong, South Florida is not without its complexities. Local regulations can vary significantly—especially when it comes to short-term rentals—making market-specific due diligence essential.

    In the condo sector, newer regulations have introduced stricter requirements around reserves and structural inspections, which can impact operating costs and financial planning. Additionally, insurance premiums and HOA fees tend to run higher than national averages, and these costs must be factored into any serious investment analysis.

    For commercial real estate, understanding zoning, tenant demand, and submarket trends is critical to identifying the right opportunities and avoiding costly missteps.

    Final Thoughts

    South Florida remains one of the most compelling real estate markets in the U.S., but success here comes down to strategy and execution. Investors who approach the market with a clear understanding of its dynamics, realistic underwriting, and the support of experienced local professionals are best positioned to capitalize on its long-term potential.

    References:

    https://austinbergman.com/blog/everything-you-need-to-know-about-investing-in-real-estate-in-south-florida

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    The New Math of Agent Profitability: Why Habits Now Outperform Hustle in 2026

    In today’s real estate market, the old formula for success—work harder, stay busier, chase more volume—no longer delivers the professional or financial results agents expect. According to Florida Realtors’ 2026 analysis, the agents rising fastest are not those racking up the most hours or hustling the loudest, but those who deeply understand their financials, scale with intention, and treat their real estate career like a strategic business.

    This shift in mindset is transforming the industry. Profitability is no longer accidental; it is engineered. And the agents embracing this new math are building more resilient, efficient, and financially stable businesses than ever before.

    Why More Production No Longer Means More Profit

    Many agents fall into the trap of equating busy schedules and high sales volume with healthy earnings. Yet the Florida Realtors report highlights a recurring pattern: commission income rises, but expenses rise faster. [nar.realtor]

    Marketing costs grow, administrative demands increase, and tax obligations fluctuate. Without intentional oversight, real earnings shrink. The article emphasizes that this is not a production issue. It is a profitability issue. Many agents “feel broke at high volume” because they are not tracking the right numbers or building systems that prevent financial leakage.

    In an industry where inconsistent income is common, gaining control over margins becomes essential—not optional.

    The Financial Blind Spot Holding Agents Back

    The analysis reveals an uncomfortable truth: most agents can easily recite their year‑to‑date sales volume, but very few can articulate their actual net profit.

    This lack of clarity creates business decisions rooted in emotion rather than logic. The article outlines three foundational financial metrics that agents must understand to reverse this trend: Gross Commission Income, Net Commission Income, and Operating Expenses. Each one illuminates a different dimension of business health, and together they create a clear picture of profitability.

    Gross Commission Income reflects total revenue before fees. Net Commission Income reveals what the agent truly keeps after splits and referrals. Operating Expenses encompass everything required to run the business. Profit is found in the space between what comes in and what goes out. When agents finally “get intimate” with these numbers, the article explains; their entire business begins to shift.

    Understanding these financial pillars empowers agents to make better spending decisions, evaluate ROI, and scale more strategically.

    Profitability Is No Longer an Accident — It’s a Discipline

    The new math of agent profitability, as outlined by Florida Realtors, represents a clear departure from outdated industry norms. Success is no longer measured by volume, activity, or speed. It is measured by margins, clarity, and operational discipline.

    Agents who understand their numbers, spend intentionally, and build systems are creating businesses that are not just busy—but profitable, durable, and scalable.

    In an evolving market, the future belongs to the agents who move beyond hustle and embrace habit-driven, CEO‑level thinking. Those who master this new math will not only survive the shifting real estate landscape—they will lead it.

    References:   

    https://www.floridarealtors.org/news-media/news-articles/2026/02/new-math-agent-profitability-habits-over-hustle

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    Building Trust with Gen Z Tenants & Future Investors: What Commercial Property Owners Need to Know

    A generational shift is transforming commercial and residential real estate. As Gen Z becomes a major segment of the workforce and rental market, their expectations are driving meaningful operational changes across the industry. This tech-driven, highly informed demographic—accustomed to instant access—demands seamless digital experiences, transparent communication, and strong security measures. Properties that fall short risk losing not only tenants but also long-term relevance.

    Understanding what Gen Z values is essential for property management strategies that aim to stay competitive. Their preferences are shaping building design, amenity standards, communication methods, and investment trends, making this generation one of the most influential forces in modern real estate.

    Digital Natives Expect Tech-Integrated, User-Centric Environments

    Gen Z is expected to make up around 30% of the workforce, and nearly every member of this generation was immersed in smartphones, apps, and seamless digital services from an early age. This background shapes their expectations for housing and commercial environments. They anticipate a property experience that feels as intuitive as the technology they use daily.

    Gen Z prefers buildings equipped with smart access credentials, mobile-first platforms, and centralized digital management tools. These systems reduce friction and create continuity between their online and offline worlds.

    Beyond convenience, integrated technology signals that a property is modern, responsive, and aligned with current expectations—qualities younger tenants strongly consider when choosing where to live or work.

    Transparency Is the Cornerstone of Trust with Gen Z

    Gen Z grew up with the ability to instantly verify information, cross-check claims, and identify inconsistencies. As a result, they are discerning consumers who expect clarity from the organizations they engage with.

    They want straightforward communication about how their data is used, who has access to their building or unit, how visitors and deliveries are managed, and what security measures protect them. For many Gen Z tenants, a lack of clarity can quickly become a deal-breaker.

    Whether entering a building, retrieving packages, or coordinating a delivery, they want the experience to be smooth and predictable. Smart access systems help eliminate confusion and give tenants a sense of control. Automated entry logs, digital visitor passes, real-time delivery tracking, and mobile entry solutions all contribute to a more seamless experience.

    Gen Z’s Influence on the Future of Real Estate

    Although many Gen Z individuals are currently renters, they are also future homeowners, investors, and commercial tenants. Their preferences will shape development trends, technology adoption, and investment priorities for decades.

    As this generation gains purchasing power and leadership roles, they will gravitate toward properties that reflect the standards they expect!

    References:

    https://www.nar.realtor/commercial/create/how-to-build-trust-with-gen-z-tenants-future-investors

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    AI Anxiety: What It Means for Commercial Real Estate Brokers and Why Human Expertise Still Matters

    Recent headlines have highlighted a new source of investor anxiety in the commercial real estate industry: artificial intelligence. Public brokerage firms have experienced market volatility amid concerns that AI could disrupt traditional brokerage models and compress margins.

    While the attention may feel dramatic, the reality is more nuanced. AI represents transformation,  not elimination of the brokerage profession.

    AI Isn’t Coming… It’s Already Here

    Artificial intelligence is already embedded in commercial real estate workflows. From automated underwriting models and predictive analytics to marketing automation and client communication tools, AI is streamlining many of the repetitive and time-intensive tasks brokers once handled manually.

    Research, data aggregation, financial modeling, and even property marketing materials can now be generated faster and more efficiently than ever before. This shift naturally raises questions about long-term staffing models and the structure of brokerage teams.

    However, efficiency gains do not equate to irrelevance.

    Why Human Expertise Still Wins Deals

    Commercial real estate transactions are not purely data exercises. They are strategic, relationship-driven, and often highly complex.

    Relationships drive outcomes.
     Successful deals are built on trust, reputation, and long-term relationships. AI can analyze patterns, but it cannot build credibility over years of market experience or navigate the interpersonal dynamics that shape negotiations.

    Context matters more than computation.
     Every property and submarket has nuances that extend beyond spreadsheets, zoning interpretations, landlord motivations, tenant culture fit, political considerations, and local economic signals. Experienced brokers interpret these variables in ways that algorithms cannot fully replicate.

    Technology augments performance.
     The most effective brokers are leveraging AI as a productivity tool. By automating administrative work and preliminary analysis, brokers can dedicate more time to strategy, advisory services, and client engagement, the highest-value components of the profession.

    The Real Risks of AI Adoption

    While AI offers opportunity, it also introduces challenges that must be managed carefully.

    Data integrity concerns.
     Commercial real estate data is often fragmented and inconsistent. AI systems are only as reliable as the data they are trained on.

    Compliance and legal exposure.
     Improper use of automated tools in underwriting, tenant screening, or document preparation can introduce legal risk.

    Overreliance on automation.
     AI can produce outputs that appear polished but contain inaccuracies. Human oversight remains essential.

    These realities reinforce a key point: AI is a tool, not a substitute for professional judgment.

    A Strategic Approach for Brokers

    To remain competitive in an AI-driven environment, commercial brokers should focus on three priorities:

    Embrace smart integration.
     Use AI to improve efficiency in research, analysis, and marketing, but keep strategic decision-making human-led.

    Invest in education.
     Understanding AI capabilities and limitations ensures responsible adoption and protects both clients and reputation.

    Double down on relationships.
     In a more automated world, authenticity and trusted advisory relationships become even more valuable.

    Looking Ahead

    Technology has reshaped commercial real estate before — from digital listing platforms to advanced financial modeling tools. Each wave created temporary disruption, but ultimately elevated the role of high-performing professionals.

    Artificial intelligence is no different. It will reward brokers who adapt, refine their value proposition, and use technology to enhance, not replace their expertise.

    The future of brokerage is not less human. It is more strategic, more efficient, and more relationship-driven than ever.

    At Cohen Commercial, we believe innovation and experience go hand in hand. The firms that thrive in this next chapter will be those that combine advanced tools with trusted advisory insight, delivering smarter outcomes for clients in every market cycle.

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    Why Commercial Builders Are Betting Big on Data Centers and What It Means for CRE in 2026

    The commercial real estate landscape looks very different today than it did even a few years ago. According to The Wall Street Journal, many commercial builders are now overwhelmingly prioritizing data-center projects, and largely stepping back from traditional segments like office, retail, multifamily, and warehouse construction.

    This shift is more than a headline trend, it’s reshaping the way developers, investors, and brokers think about commercial real estate opportunities and risks in 2026.

    A Diverging Construction Market

    Commercial construction overall is showing little to no real growth this year. Higher interest rates, rising material costs, and labor shortages are pushing many traditional projects off the drawing board or into delayed pipelines. Traditional commercial real estate property types—offices, hotels, apartments, and warehouses—are all projected to see flat or declining construction spending.

    But there is one notable exception: data centers.

    Driven by surging demand from large technology companies and hyperscalers to support artificial intelligence, cloud computing, and digital infrastructure, data-center construction is expected to grow by more than 20% in 2026 and now represents an increasingly large share of total nonresidential building activity.

    Why Data Centers Are Pulling Ahead

    Several key factors explain why commercial builders are prioritizing data centers:

    1. Unprecedented Demand from Tech and AI Platforms
     Tech giants like Amazon, Google, Oracle, and others are investing billions into building AI and cloud infrastructure. These facilities are critical to running AI workloads, and the demand shows no sign of slowing. Unlike traditional CRE sectors, this demand is often backed by long-term contracts and deep capital pools, insulating data center projects from the typical pressures slowing other sectors.

    2. Scale and Revenue Potential
     Data center projects are massive in scale and capital intensity, frequently topping $1 billion for a single facility due to complex electrical, cooling, and redundancy infrastructure needs. For builders, this means larger contracts, longer project timelines, and often more predictable revenue than speculative office or retail builds.

    3. Labor and Specialty Requirements
     These projects are also reshaping construction labor demands. Builders with deep experience in mission-critical electrical and power infrastructure are finding themselves in high demand. In many cases, data center projects now command longer backlogs and more skilled labor than traditional office or multifamily construction.

    Impacts on the Commercial Real Estate Market

    For brokers, investors, and developers, the implications of this shift are significant:

    Capital Flow Shifts
     Institutional and private capital is increasingly allocating funds to digital infrastructure as part of diversified CRE portfolios. That’s pushing valuations and investor interest into data centers, and away from property types that still struggle with oversupply and uncertain tenant demand.

    Land and Development Competition
     Hot markets for data centers, such as Northern Virginia, Dallas, Phoenix, and Atlanta, are seeing competitive land markets where tech infrastructure demand is reshaping traditional land use. This competition sometimes puts pressure on residential and industrial development pipelines.

    Risk and Return Divergence
     While traditional CRE segments remain sensitive to economic cycles, interest rates, and tenant demand shifts, data centers are increasingly treated as mission-critical infrastructure assets with long-duration leases and durable demand signals tied to digital economy growth.

    What CRE Professionals Should Watch

    As data center construction continues to grow, commercial real estate professionals should consider how this trend influences broader real-estate dynamics:

    • Valuation frameworks: Data centers may require different underwriting metrics than traditional CRE, emphasizing tenant credit, long-term power costs, and connectivity infrastructure.

    • Market positioning: Brokers and developers with expertise in industrial and tech-related assets are poised to capture more of the growth momentum.

    • Infrastructure constraints: Power availability, utilities capacity, and regional planning are becoming central determinants of where data center demand will concentrate next.

    Conclusion

    The commercial construction market in 2026 is not just slowing, it is rebalancing. Data centers now represent a structural growth segment amid broader headwinds in other commercial property types. For Cohen Commercial and the larger real estate community, this presents both challenges and opportunities.

    Understanding how demand for data centers integrates with broader portfolio strategies, and how that demand reshapes land, labor, and investment dynamics, will be key for brokers and investors navigating the market today.

    If you’re interested in exploring how these trends affect your assets or investment strategies, our team at Cohen Commercial is here to help interpret the data and identify where opportunity meets execution in this shifting landscape.

    References:

    https://www.wsj.com/real-estate/commercial-builders-are-losing-their-appetite-to-build-anything-but-data-centers-945c594f

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    Love, Location & Long-Term Value: What Valentine’s Day Dining Trends Say About Commercial Real Estate in Palm Beach County

    Valentine’s Day isn’t just about hearts and roses, it’s one of the busiest dining nights of the year across Palm Beach County, driving foot traffic, supporting local restaurateurs, and highlighting the strategic importance of prime commercial real estate locations. As restaurants prepare for full reservation books and elevated prix-fixe menus throughout the county, there’s a powerful commercial real estate lesson hidden in every crowded dining room.

    Palm Beach County’s Dining Scene: More Than Just a Meal

    Each February, couples and friends flock to the region’s romantic restaurants, from elegant French bistros in downtown West Palm Beach to waterfront seafood spots in Jupiter and beyond. These establishments are not just serving memorable meals; they’re anchoring vibrant commercial corridors that drive economic activity year-round. Some of the most sought-after dining destinations include beloved local favorites like Flagler Steakhouse, La Goulue, Pink Steak, and The Beacon, all known for their ambiance and seasonal Valentine’s Day offerings.

    This concentration of high-quality dining options reflects a broader trend: destination dining is becoming a major draw for residents and visitors alike. In turn, that attracts higher-end retail, entertainment venues, experiential services, and hospitality uses, all of which contribute to a robust commercial ecosystem.

    Why Restaurants Matter in CRE Strategy

    Restaurants are often considered trend indicators in commercial real estate, think of them as the “canaries” in the economic coal mine. When they thrive, it usually means the surrounding area has strong consumer demand and walkability. When they struggle, it can be an early signal that a location lacks essential support infrastructure like visibility, parking, or nearby complementary uses.

    Here’s why Valentine’s Day dining trends matter to CRE professionals:

    1. High Foot Traffic = High Value Placements

    Restaurants that are fully booked on Valentine’s Day are typically located in retail districts, mixed-use centers, or corridor sites with strong visibility and access. These are the same qualities commercial brokers and investors look for when evaluating long-term retail and hospitality investments.

    2. Experience Economy Enhances Property Draw

    Palm Beach County’s dining scene is a cornerstone of its experience economy — where consumers value memorable outings over simple transactions. Places like waterfront patios, upscale bistros, and stylish concept restaurants bring lifestyle demand into commercial projects, increasing overall property appeal and rental premium potential.

    3. Restaurants Attract Complementary Uses

    Successful dining destinations help drive ancillary commercial activity. Patrons who visit an area for Valentine’s dinner might stay for dessert at a nearby café, grab a drink at a wine bar, or shop in boutique stores before or after dinner. This creates a spillover effect, benefiting retail and service tenants sharing the same commercial real estate ecosystem.

    Looking Ahead: The Palm Beach Culinary & CRE Boom

    The vibrancy of Palm Beach County’s culinary offerings doesn’t just show up during Valentine’s Day. With new restaurant concepts opening, evolving urban districts like downtown West Palm Beach and SoSo Design District, and lifestyle-focused developments attracting residents and visitors alike, the county’s commercial real estate landscape is ripe for opportunities that capitalize on dining-related demand.

    From premium retail/restaurant space leases to mixed-use redevelopment projects that blend dining, living, and entertainment, hospitality and dining trends continue to shape investment strategies across the county.


    Valentine’s Day dinners may last a few hours, but the broader implications for commercial real estate endure. Restaurants draw people, create conversations, and contribute directly to the economic fabric of Palm Beach County’s commercial districts. For brokers, investors, and developers, keeping a pulse on where people choose to dine, gather and celebrate offers invaluable insight into where the market is heading, and where opportunity lies.

    References:

    Savor Valentine’s Day Dining in the Palm Beaches

    https://meyerlucas.com/blog/valentines-day-dinner-in-palm-beach?utm_source=chatgpt.com

    https://meyerlucas.com/blog/valentines-day-dinner-in-palm-beach?utm_source=chatgpt.com