Miami real estate may be grabbing headlines, but its neighbor to the north is also capturing the spotlight.
Long known for its agricultural production, Palm Beach County is rapidly transforming into a major hub for high-end residential, finance and commercial investment, growth that continues to accelerate in the wake of the pandemic. TRD sat down with Banesco USA Senior Vice President, Corporate Banking Leader for the Palm Beach market, Roland Valdivieso, to learn about the past, present and future of Palm Beach real estate and how his team of experienced bankers is capturing this growing market.
From Sugarcane Fields to Hedge Funds
Born and raised in Palm Beach, Valdivieso has been working in the local market for 24 years and has watched the County grow from a premier agricultural producer to a commercial, residential and business destination.
“Agriculture has long been a dominant industry in Palm Beach County and remains an essential part of our broader economy,” says Valdivieso, who explains that, alongside a “burgeoning distribution and industrial base,” the County saw an influx of high net-worth individuals moving to Palm Beach Island in the last 10 years as more companies relocated to the area.
This migration was no accident. It was the result of deliberate efforts by the Palm Beach County Business Development Board to target the Northeast financial sector, earning Palm Beach the nickname ‘Wall Street South’.
“From a tax perspective, we’re a great alternative,” says Valdivieso, who watched the first wave of small hedge funds move down to Palm Beach and reap the financial benefits.
The expansion of the financial sector was the tipping point, triggering a wave of relocations to West Palm Beach—first smaller firms, then midsize companies, and now corporate headquarters. This trend has only accelerated in the post-pandemic era. Alongside the growth of the office sector, quality of life improvements and new lifestyle offerings have enhanced the area’s appeal, complementing its balmy climate.
“When I was in high school, Jupiter was not talked about much,” recalls Valdivieso. “Now it’s the hottest place around. You’ve got Michelin-star restaurants in strip malls up there that are catering to the upscale lifestyle of its growing residential and business base.”
“We’ve Been Pretty Insulated”
With the office sector continuing to struggle nationwide, Valdivieso points out that Palm Beach has remained largely insulated. In fact, the county has experienced higher rents and lower vacancies compared to many office markets across the U.S.
“Palm Beach County is kind of an anomaly compared to the rest of the country, where ‘office’ is a bad word,” he says. “Even our own search for office space was challenging given the high demand and competition for class A offices in West Palm Beach.”
While Florida’s CRE market has remained strong in the face of national headwinds, Valdivieso says that Palm Beach has been particularly insulated thanks to the influx of capital from around the country. Combine this with demand for affordable housing and increasingly luxurious waterfront residential properties, and contractors are in greater demand than ever, keeping the economic feedback loop humming.
Local Business Banking That is Personalized
With Palm Beach experiencing such rapid growth, it was a natural place for Banesco USA to establish a new office, and Valdivieso had the extensive knowledge and connections to head it up. In January 2023, he assembled a team of seasoned local bankers to successfully launch the new office.
“The timing was perfect from a market perspective,” he recalls. ‘“We’ve really been able to capitalize on the trail winds that the Palm Beach County market is currently experiencing.”
Like with the rest of their South Florida offices, Banesco USA brings a personal touch and custom solutions to the Palm Beach market that Valdivieso says has been lacking.
“We have the ability to be flexible, to be creative, and accomplish tasks that might require an extensive approval process at larger banks that are not locally led,” he says. “If you need assistance in applying for a debit card or card limit increase, you just have to call or send an email, and it’ll be done quickly.”
This nimble Banesco USA model is tailor-made for the high net-worth individuals who define the current Palm Beach market, but it’s also a great fit for the many generational small and medium-sized businesses that have grown up around the County.
Banesco USA’s model combines the personalized service of a good private bank with the capacities of a business bank.
“Our value proposition is that personal touch combined with product sophistication,” says Valdivieso.
The Future of Palm Beach County
While we had Valdivieso on the line, we asked for his insider opinion on the direction he expects the Palm Beach market to head in the next few years.
“In general, the County will continue to trend younger,” he forecasts. “There’s a lot of jobs being created in the finance sector, in biotech, and in similar knowledge-based businesses.”
As capital continues to pour into the county and job growth continues, development is expected to expand further west. Valdivieso highlights a key challenge: the increasing need for housing. While waterfront properties are being redeveloped to cater to the luxury market, affordable housing for essential workers is becoming increasingly important.
From their central location in Downtown West Palm Beach, Valdivieso’s team at Banesco USA is poised to serve Palm Beach businesses and residents, newcomers and longtime locals existing.
Banesco USA’s Palm Beach team understands the dynamics of the local market, offering custom solutions with white-glove service and swift decision-making. As a community bank, Banesco understands that businesses need a local point person who understands their short term and long-term business goals. The bank is committed to supporting the growth of new and existing companies. For a business bank in Palm Beach that delivers personalized attention, contact Roland Valdivieso today at rvaldivieso@banescousa.com.
To learn more about Banesco’s services and products, please visit banescousa.com.