A growing pattern is emerging across Palm Beach County in 2026, and it’s showing up in both residential and commercial real estate. While the island of Palm Beach remains iconic, and downtown West Palm Beach is booming, rising prices and limited inventory are quietly pushing people and companies to rethink where value truly lives.
The result is a two-part shift:
- People are increasingly moving to West Palm Beach (as opposed to Palm Beach)
- Businesses are moving from West Palm Beach to the greater Palm Beach County market
Residential: From Island Prestige to Practical Luxury
The Town of Palm Beach has always been defined by scarcity. With virtually no room to build, prices continue to climb, and inventory remains tight. For buyers who still want luxury—but with more space, newer construction, fewer logistical headaches, and a much lower price tag—West Palm Beach has become the logical alternative.
New developments along South Flagler Drive and throughout downtown now offer:
- Larger floor plans
- Modern amenities and services
- Waterfront views comparable to the island
- Easier access and travel to dining, shopping, airport, and more
- Plus, a lower price tag
For instance, due to these same motivations, former Apple CEO John Sculley recently made headlines in the Wall Street Journal for going into contract on a $40 million penthouse in West Palm Beach at Related Ross’ South Flagler House, after selling his Palm Beach home.
In summary, West Palm Beach delivers a similar lifestyle, but with more optionality and a better “bang for your buck.” This has led to some even renaming the two areas as “Palm Beach Proper” referring to Palm Beach and “Palm Beach West” referring to West Palm Beach.
Commercial: When Downtown WPB Success Prices Firms Out
While residents move into West Palm Beach, many businesses are quietly moving out. Downtown West Palm Beach’s commercial market has become a victim of its own success. As financial firms and hedge funds continue to enter the city, office rents have surged to some of the highest levels in the country—often exceeding $100 per square foot. While this works for firms built around prestige and proximity, it has become unsustainable for many businesses.
For example, some professional services business, like law firms, accounting firms, and long-established local companies, are increasingly choosing suburban hubs like Palm Beach Gardens and Wellington. The reasons are consistent:
- Significantly lower rents
- More space for the same—or less—cost
- Easier parking and employee access (e.g., no downtown traffic)
- Long-term lease stability
In many cases, these businesses may maintain a small downtown presence, while shifting core operations west or north, optimizing both cost and visibility.
The Underlying Driver: Value Per Square Foot
At the heart of both shifts is the same equation: value per square foot. This is not a pure price analysis, but rather what residents and businesses get for the price per square foot—i.e. value.
Palm Beach commands a premium because it can. Downtown West Palm Beach commands a premium because demand has exploded. But Palm Beach County is large, and alternatives now offer better economics without sacrificing quality.
For residents that seek the luxury of Palm Beach, they now have greater options as West Palm Beach explodes with luxury homes and high rises that offer more space and newer, modern amenities. For businesses, looking to greater Palm Beach County means operational efficiency and room to grow. In short:
- Palm Beach → West Palm Beach for residential value
- West Palm Beach → Greater Palm Beach County for commercial value
Bottom Line
The trend in 2026 seems to be that luxury living is expanding beyond the island, and business activity is spreading beyond the downtown core. What we’re seeing isn’t a retreat from Palm Beach or West Palm Beach, but a more strategic approach to where people live and work. Palm Beach remains iconic, but its physical limits are real. West Palm Beach has room to grow, build, and evolve. And as downtown office costs soar, surrounding cities are absorbing businesses looking for sustainability over prestige. The trend isn’t about leaving luxury behind—it’s about getting more of it for the price. As a result, the center of gravity to Palm Beach and WPB is widening.
