- Stephen Ross, via Related Ross, is investing about $10 billion to remake West Palm Beach into a finance-tech-education hub pitched as a “Silicon Valley” for Florida.
- The buildout centers on millions of square feet of new Class-A offices, luxury condos and hotels, backed by marquee tenants like ServiceNow and Cleveland Clinic.
- Ross is also recruiting ecosystem anchors such as Vanderbilt’s planned graduate campus, private schools, and expanded health-care facilities to attract and retain talent.
- Key uncertainties include workforce/affordable housing, office-demand risk, infrastructure capacity, and reliance on large construction loans and pre-leasing.
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Stephen Ross is executing one of the most ambitious urban transformations in recent U.S. real-estate history, centered on West Palm Beach and broader Palm Beach County. By launching Related Ross in 2024, he sharply rebased his focus: from his long‐standing Related Companies operating in high-barrier markets like New York, to building a new “model city” in Florida.
The strategy combines massive physical development with precise ecosystem building. On the real-estate side, projects under way or planned include the two towers 10 CityPlace and 15 CityPlace (about 1 million sq ft of office space), One Flagler, South Flagler House, The Laurel, and a luxury waterfront hotel portfolio.
Strategically, Ross has anchored high-profile tenants—gold‐standard names in finance and tech—to validate WPB as a serious business node. ServiceNow, for instance, will locate hundreds of employees and establish an AI and innovation hub; Cleveland Clinic will anchor medical office buildings and hospital facilities. These become pillars that help draw in talent, capital, and further investment.
Institutional enhancements are equally critical. Ross has secured commitments for a graduate campus from Vanderbilt, helped broker private-school deals, and is bringing in health-care infrastructure. These serve both to retain talent and diversify economic activity. But each also carries cost, competition, and implementation risk.
On funding, Ross is using a mix of large-scale construction financing (e.g. the $772 million package for 10 & 15 CityPlace), pre-leases, and land/hotel acquisitions (e.g. The Ben hotel purchase for $190 million).
Risks and open questions remain: Will office demand keep pace amid broader market softness? Can workforce and affordable housing balance with luxury development? How fast will university projects scale compared to incumbents? And how will infrastructure (transportation, utilities, services) manage intensification? The comparison to Silicon Valley sets a high bar for innovation cluster dynamics, not just real-estate.
Strategic implications: WPB could become a magnet for out-of-state capital and talent, reshaping economic geography in Florida. For investors, Ross’s work signals where class-A real-estate returns might concentrate. Public policy will need to adapt to issues such as zoning, workforce housing, and infrastructure capacity. If successful, the WPB model could offer a template for other cities aiming to replicate similar exodus-driven growth.
Supporting Notes
- Related Ross is securing a record $772 million construction loan for two towers—10 CityPlace and 15 CityPlace—totaling ~1 million square feet, to be completed in 2027.
- ServiceNow will lease ~200,000 square feet in 10 CityPlace, establish an AI institute and innovation hub, and aim for ~850 jobs in WPB over five years.
- The Ben hotel (208 rooms, waterfront) is being acquired by Ross’s firm for ~$190 million.
- South Flagler House condos: two 28-story towers, 108 high-end units, with more than $1 billion in condos pre-sold and prices ranging broadly (up to ~$72.5 million).
- Leasing and tenant activity: 360 Rosemary is fully leased with Goldman Sachs, J.P. Morgan, Point72, etc.; One Flagler (~80 % pre-leased) includes firms like Paulson Capital.
- Institutional commitments: Ross has helped to secure Vanderbilt’s $520 million graduate campus; Cleveland Clinic $500 million hospital; private school deals underway.
- Contextual pull factors: Florida’s favorable tax policies (no personal income tax), pro-growth attitudes, lower regulatory barriers; migration of finance and tech workers post-pandemic aimed at alternatives to California.
- Existing challenges: Ross and county leaders are discussing workforce and affordable housing; WPB’s office market is under macroeconomic stress in parts of South Florida.