S
teve Ross, 84-year-old founder of Related Companies, has carved out a new division called Related Ross, which he leads as chairman and CEO. The firm's primary focus is on West Palm Beach, where it's the largest Class A office landlord and is developing various projects. Kenneth Himmel, president of Related Ross, described West Palm as "a canvas" with vast potential for growth.

    Related Ross' portfolio in West Palm spans over a dozen office and residential buildings, including those purchased, under construction, completed, or planned. The firm has also invested in retail holdings, such as the CityPlace mixed-use complex. Despite concerns about the pandemic's impact on office space, Ross doubled down on West Palm, leading to significant progress.

    Preleasing for one of Related Ross' 500,000-square-foot office buildings is at 65-70%, with a medical technology company among prospective tenants. Construction is expected to start in March, and another building will follow a year later. The recently completed 21-story apartment tower, The Laurel, has seen over 80% of its units rented out, with average rents exceeding expectations.

    The 25-story One Flagler office tower under construction is nearly 85% preleased, with net rents averaging over $100 per square foot and reaching up to $140 a foot. Despite the current slowdown in South Florida's real estate market, Related Ross remains optimistic about its prospects in West Palm Beach. Himmel emphasized the need for larger tenants to drive growth, drawing comparisons to Silicon Valley's early years.

    The potential arrival of Vanderbilt University's graduate school campus could further boost West Palm's appeal, with Steenburgh suggesting that the university might develop a real estate program at its new campus. Ross' Related Companies has been scaling back his role since 2012, but he remains non-executive chairman and is involved in other ventures, including the Miami Dolphins and Formula One Miami Grand Prix.

    Himmel expressed confidence in West Palm's market potential, stating that Related Ross will continue to invest in the area.