The industrial leasing in the county grew from 1.5 million sf in 2002 to 1.9 million sf the next year. However, investor sales did drop slightly from about 1.5 million sf in 2002 to just over one million sf last year. During the same time, user sales were nearly cut in half, falling from more than 697,000 sf to more than 351,000 sf. However, one notable transaction did take place last year: the sale of the 538,933-sf Motorola building in the Boynton Beach submarket. Compson Associates purchased it for $25.5 million and plans to redevelop the property and adjacent land and build a mixed-use development.

Also in 2003, Palm Beach County experience a dramatic improvement in absorption with direct net absorption at a positive 330,000 sf, up from 232,000 sf absorbed in 2002. The West Palm Beach area saw the biggest amount of net absorption, more than 731,000 sf.

Construction activity countywide last year was 1.3 million sf, a big jump from the 339,000 sf delivered in 2002, the report states. It was particularly strong in two submarkets--West Palm Beach and Boynton Beach, the report points out. The West Palm Beach construction included a Costco Distribution Center, and buildings 2 and 3 at Premier Airport Center, which total 181,870 sf and are around 25% vacant. Boynton Beach delivered more than 266,000 sf 55.6% vacant. Significant projects there included buildings 2 and 3, totaling 196,848 sf, at Premier Gateway Center, as well as the 69,793-sf High Ridge Commerce Center Phase I, which has all been sold or put under contract.