Stephen M. Ross, who as former head of Related Cos. drove development of Time-Warner Center at Columbus Circle and Hudson Yards, is creating a new Boomtown USA far from Manhattan’s West Side — in West Palm Beach, a short bridge stroll across the Intracoastal Waterway from its wealthier cousin, Palm Beach Island.
West Palm, long in the shadow of its glam neighbor, has emerged as a live-work-and play model for what Ross sees as a “new Silicon Valley.” A business-friendly political climate, sunny weather and pandemic-driven demographic patterns contributed to the surge in West Palm’s prime, waterway-fronting district.
His new company, Related Ross – not affiliated with New York-based Related Cos. – is leading a development boom that includes other real estate companies. But Ross’s private $10 billion investment is by far the largest to date.
Today’s downtown/waterfront section of West Palm feels worlds removed from the pleasant but somewhat sleepy backwater it was until not long ago. Sidewalks bustle with residents, office workers and shoppers amidst the din of construction sites.
The commercial towers are rapidly filling up. In perhaps the largest lease, California-based ServiceNow launched a second headquarters in 200,000 square feet at Ross’s 10 City Place.
Wells Fargo signed for 50,000 square feet at One Flagler, a 27-story tower on Lakeview Avenue with restaurant Milos at its base. Wells Fargo isn’t fleeing Manhattan – it just expanded to nearly 1 million square feet at Hudson Yards. But Ross told The Post the One Flagler move is “significant because they’re moving their wealth management office from New York and St. Louis.”
On the residential side, Ross reported $1 billion in condo sales in the past six months. Apartments at Robert A. M. Stern-designed, South Flagler House, tower, to open in 2027, are priced up to $72.5M
Reflecting a “wellness” and educational priority of his company and of the city of West Palm Beach, a 125,000 square-foot Cleveland Clinic outpatient center is coming in 2028 and a Vanderbilt University graduate campus as well.
Meanwhile, CityPlace, Ross’s first West Palm project opened on 72 acres two decades ago, is flourishing with welcoming public spaces, 60 stores and restaurants and new tenants including Eataly and Equinox.
Ross said CityPlace was “ahead of its time,” launched before West Palm Beach gained traction as a commercial and residential hub. He gradually bought more properties nearby, but things really took off when COVID-19 struck, compelling families and companies from around the country to check out South Florida’s low-tax, business-friendly environment as well as the mild weather.
“I saw how the world was changing,” Ross said. “I realized I was sitting on something unique. Palm Beach County” – one of the nation’s largest – “was so right for development. I saw it as becoming the next Silicon Valley and we’re trying to make that a reality.”
He said, “I see a lot of firms from Boston looking seriously here. It doesn’t happen overnight. But companies are looking at much larger spaces here than before,” including at least one from Manhattan.
Ross had help along the way. West Palm Beach mayors and city commissioners have helped to spur development with infrastructure investments, zoning changes and other incentives which benefit other developers in the area as well.
Ross created or is developing more than 3.2 million square feet of offices with an eventual 8 million planned in a total of 11 buildings. Four condo and one rental apartment building are open and an “affordable” rental tower is planned.
Ross credits current Mayor Keith James for an holistic, “inclusive growth” approach that recognizes new projects can’t succeed without attracting talent drawn by superior lifestyle and wellness facilities. City officials worked with Ross to even make micro-adjustments to zoning, for example to allow two kitchens in a single residence to accommodate religious and dietary needs.
Ross said the old days of viewing Miami and its suburbs mainly as the “gateway to Latin America” are over – “now we see it as most attractive to American business.”
His first move beyond West Palm Beach will be in Wellington, an equestrian-focused area in the county with a lot of developable land about a half-hour from West Palm. Village Landing will be a mixed-use project including a hotel, a school, town homes, retail and restaurants.
