Restaurant real estate soaring in Palm Beach County

Miami /
Dec.December 29, 2015 03:45 PM

The real estate market for restaurants in Palm Beach County is strong, with heightened demand and rising prices attracting a range of eateries, experts say.

“Demographics — heavy high-end to middle class — are conducive to restaurant owners,” Tom Prakas, owner of restaurant brokerage Prakas & Co. in Boca Raton told The Real Deal. “The population is rising, the economy is bustling and tourism is on the rise.”

The increase in housing prices also is leading consumers to eat out more, said Russ Bornstein, senior vice president at CBRE in Boca Raton. “People are feeling good about themselves,” he said.

The growth is particularly strong in Boca Raton, Bornstein told TRD. For example Houston’s, which already has one restaurant in the city, is planning another at Palmetto Park Road and the Intracoastal Waterway. Houston’s has seven locations in Florida, and this would be the third in Palm Beach County, Bornstein said.

On the low end of the restaurant scale, Chipotle is planning a fifth Boca Raton location in the Park Place shopping center scheduled to open next year on Military Trail, south of Clint Moore Road and Office Depot’s corporate headquarters (5540-5590 North Military Trail).

The center will also include Habit Burger; Burton’s Grill; Raw Juice, a Boca Raton-based fresh juice and vegan food restaurant; Phenomenon, a nitrogen-based ice cream parlor; and Rappy’s Deli, a new concept from famed South Florida restaurateur Burt Rapoport, who also owns Apeiro Kitchen & Bar in Delray Beach and Midtown Miami.

“What restaurants like about Boca is that there is 11 million square feet of office space around Glades Road and I-95,” Bornstein said. He said many restauranteurs seek “second generation” space — properties previously occupied by restaurants. “If you can go to a space that was formerly a restaurant, it’s a huge cost savings,” he said.

Prakas said he is working on projects for eight new restaurants in Boca Raton, half of which are national brands and half regional concepts.

And it’s not just Boca Raton. Prakas brokered the sale of the building that houses Buddha Sky Bar at 217 East Atlantic Avenue in Delray Beach for a whopping $7 million. The seller was Larry Lipnick, and the buyer group was led by Bobby Yampolski.

In West Palm Beach, Prakas sold a restaurant condominium in Via Jardin at 330 Clematis Street in the heart of downtown. He doesn’t know who the tenant will be. Prakas also leased restaurant space in the 17-story, Class A Esperante office building at 222 Lakeview Avenue in downtown West Palm. A ground-floor restaurant will occupy 5,000 square feet and a rooftop lounge, 4,000 square feet. Prakas couldn’t name the tenants.

And Palm Beach’s popular Buccan restaurant is opening a casual Italian eatery, Grato, at 1901 South Dixie Highway in West Palm Beach, early next month.

Analysts say the party won’t end soon. “Palm Beach County real estate, as it pertains to restaurants, is going to remain very strong for the next 18-24 months,” Bornstein told TRD. “Vacancies are going to remain low, as any new space coming on line will be gobbled up quickly.”


Related Articles

arrow_forward_ios
Robert Rivani of Black Lion Investment Group and Wynwood Arcade. (LinkedIn, Cushman & Wakefield)
Black Lion doubles down on Miami with purchase of Wynwood Arcade, Amara at Paraiso
Black Lion doubles down on Miami with purchase of Wynwood Arcade, Amara at Paraiso
Joshua D. Frank and 429 East Alexander Road, Boca Raton (Google Maps)
Investment management partner buys waterfront Boca Raton mansion for $10M
Investment management partner buys waterfront Boca Raton mansion for $10M
Lone Star Funds founder and chair John Grayken, Discovery Senior Living exec Richard Hutchinson and the Palm Beach Gardens location of Discovery Senior Living. (Discovery, Getty)
Lone Star Funds buys two Palm Beach County senior living complexes for $57M
Lone Star Funds buys two Palm Beach County senior living complexes for $57M
Graziano Sbroggio with 3427 Meridian Avenue (Linkedin, Google Maps)
Pizza oven included: Graspa Group restaurateur sells waterfront Miami Beach home
Pizza oven included: Graspa Group restaurateur sells waterfront Miami Beach home
Grant Cardone with the Boca Raton apartments. (Facebook via Cardone, Realtor)
Grant Cardone pays $69M for Boca Raton multifamily project
Grant Cardone pays $69M for Boca Raton multifamily project
Gregory Galy of Mila restaurant with the Riverfront property. (Google Maps, LinkedIn via Galy)
Mila Group, partners plan hotel and restaurants on Miami River site
Mila Group, partners plan hotel and restaurants on Miami River site
Michael Dell and Major Food Group heads (from left) Rich Torrisi, Jeff Zalanick and Mario Carbone with a rendering of The Flamingo Grill at Boca Raton Resort & Club (Getty)
New York restaurateurs Major Food Group, Gallaghers Steakhouse ink big deals in Boca Raton
New York restaurateurs Major Food Group, Gallaghers Steakhouse ink big deals in Boca Raton
Baia Beach Club owners Michael Liebowitz, Perry Weitz and Russell Galbut. (Baia Beach Club via Facebook, Harbor Group Consulting, Weitz & Luxenberg)
The Weekly Dish: Perry Weitz buys into Mondrian South Beach, Lagniappe owner acquires Edgewater property & more
The Weekly Dish: Perry Weitz buys into Mondrian South Beach, Lagniappe owner acquires Edgewater property & more
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...