Dustin Ballard, Managing Director & Brokerage Market Leader, South Florida, Colliers
In an interview with Invest:, Dustin Ballard, managing director and brokerage market leader for South Florida at Colliers, discussed the firm’s growth and market dynamics in Palm Beach County, highlighting key drivers of demand and the role of mixed-use developments in shaping the region’s future. “That is the essence of where West Palm Beach is heading, particularly downtown West Palm, but really all of Palm Beach County. The convenience and quality of life that come with these types of developments are unmatched.”
What were the key accomplishments for Colliers in the Palm Beach region over the last 12 months?
We have approximately 80 brokers across South Florida, distributed evenly throughout the region. Palm Beach County holds particular significance for me, as I am a resident of Palm Beach Gardens. I am highly optimistic about the developments occurring in Palm Beach County. We have observed substantial deal flow across the entire region. Deals with tenants such as Ideal Nutrition in West Palm Beach and Boston Proper in Boca Raton represent some of the most notable highlights for us this year.
On a personal note, we have an exceptional team in West Palm Beach and Boca Raton. Over the past several months, we have added eight new brokers, each bringing extensive expertise and years of experience to strengthen our roster. Recruitment and retention are central to my role in South Florida, and enhancing the depth and breadth of our brokerage talent has been a key achievement since my arrival.
What sectors, industries, and property types are driving growth and demand for Colliers in the Palm Beach commercial real estate market?
The growth is predominantly driven by office leasing. We have represented several significant tenants in negotiations for new office leases, particularly in class-A high-rise and midrise buildings in downtown West Palm Beach. In 2024 alone, we participated in approximately 100 transactions in Palm Beach County. Office and industrial properties, especially class-A assets, are the primary drivers of activity as those asset classes make up the majority of the new product in the market – there is a significant flight to quality happening right now in PBC.
How is demand for office spaces, especially class-A, shifting, and what strategies should landlords and tenants consider?
Our first-quarter 2025 data indicates a slight increase in direct vacancy for office and industrial spaces in Palm Beach County. This rise may be attributed to new product deliveries. However, rental rates have continued to climb, offsetting concerns about vacancy. Office rents, particularly in downtown West Palm Beach, remain at all-time highs, bolstered by developments led by Related Ross.
Palm Beach County’s trajectory mirrors that of established markets like Silicon Valley and Los Angeles, where I have previously spent time. The commitment from Vanderbilt University further enhances the region’s appeal, adding a robust academic and research component that complements the growing life science and tech sectors. This diversification positions Palm Beach County as a dynamic and competitive market nationwide.
What unique opportunities and challenges does South Florida present compared to other markets?
The most exciting aspect of Palm Beach County is its business-friendly environment, supported by forward-thinking government policies. However, challenges exist, particularly regarding rising insurance costs, which impact new development. Another critical factor is the availability of schools. Relocation decisions often hinge on educational opportunities for families, making this a vital area for continued investment. Related Ross has been actively involved in supporting charter schools and collaborating with local municipalities to address this continued need.
How is Colliers leveraging technology and innovation into their commercial real estate practice?
Colliers has allocated millions of dollars this year toward both proprietary and third party technology platforms. While technology, particularly AI and proptech, will streamline operations and enhance efficiency, our industry remains fundamentally relationship-driven. There is no substitute for in-person interactions and traditional relationship-building. However, technological advancements will significantly improve backend processes, making our business more efficient without replacing the human element that defines commercial real estate. This balanced approach ensures we remain at the forefront of innovation while maintaining the personal touch that clients value.
What is the state of Palm Beach County’s industrial sector, and where do you see the best opportunities for future investment?
When I think about Palm Beach County, I do not necessarily consider it a core industrial market. There is more to be excited about and to pay attention to on the Treasure Coast as it relates to industrial specifically. There was also an increase since the fourth quarter in direct vacancy for industrial in Palm Beach County. I believe that is tied primarily to some deliveries that have not been absorbed yet.
The new administration and the tariff situation are factors to keep a close eye on as they relate to industrial across the entire region, including South Florida. It is something we are watching closely. Industrial has performed exceptionally well over the last two or three years, but this is a cyclical business. There is always either a correction or a flattening off, especially when considering the amount of inventory that has come online over the last couple of years. It is something to monitor, but I am not overly concerned one way or the other regarding that specific asset class.
What do you believe is the future of mixed-use developments in the region?
That is the essence of where West Palm Beach is heading, particularly downtown West Palm, but really all of Palm Beach County. The convenience and quality of life that come with these types of developments are unmatched. When you examine the specific types of tenants leasing space, whether health and wellness, lifestyle-focused, high-quality eateries, or restaurant operators, it is all about having quick, convenient, and efficient access to all aspects of life at your fingertips. That is what a mixed-use development provides. It delivers everything on demand. I believe the mixed-use development sector will continue to be at the forefront of demand.
How do you see consumer behavior and retail leasing evolving in Palm Beach County?
We cover retail more broadly across South Florida as a region. Retail has been performing very well year-over-year and in the first quarter. Part of that is due to the fact that we are still in season, and South Florida remains a top tourist destination, and I expect that will continue.
With continued population growth and corporate relocations, what areas in South Florida do you see as emerging hotspots for commercial real estate investment?
Boca Raton and West Palm Beach are the two that stand out the most in Palm Beach County. Boca Raton, with the announcement and ongoing development of the new city hall and surrounding projects, is particularly noteworthy. West Palm Beach, especially downtown, is also a key area, particularly with what Related Ross is doing there.
How have economic challenges affected the way Colliers runs its operations and how are you navigating these issues?
It is too early to tell exactly what impact they will have. Commercial real estate is generally a lagging indicator of the economy. Looking at past cycles, such as the financial crisis in 2007, the effects on commercial real estate were not fully felt until 2008 or 2009. We are still early in assessing how current market conditions will influence our industry. It is something to monitor, but this business is cyclical. There are always ups and downs, and new opportunities or technologies emerge that reinvigorate the market. The key is to remain steady and committed through market fluctuations by focusing on what you can control, delivering best-in-class service, and consistently providing results-driven solutions.
