Palm Beach’s secret ‘shadow’ market is moving $300M mega-mansions
SERHANT. executive director of luxury sales Gary Pohrer speaks exclusively to Fox News Digital about the battle for off-market properties in the island of Palm Beach.
EXCLUSIVE: Tucked quietly away from the grandeur of Mar-a-Lago and the bustle of Worth Avenue lie homes worth hundreds of millions of dollars that are now part of a so-called “shadow” underground real estate market in Palm Beach.
“If somebody were to come to me today and say, ‘Hey, what else is available that’s not outwardly seen?’ Within a few blocks of here, there is a house for $175 [million], $52 [million], $97 [million], $17 [million] and then heading up the coast you’ve got another one for $75 [million], another one over $195 [million], and one for $300 [million],” Gary Pohrer of SERHANT. exclusively told Fox News Digital. “Those are just a few in that shadow inventory. I would say 99% of the agents don’t know those are actually available.”
Spanning approximately 3.8 square miles of land, the barrier island of Palm Beach is home to approximately 2,500 single-family homes and roughly the same number of condominiums. While the public Multiple Listing Service (MLS) shows roughly 58 active single-family listings, that figure gives a false impression of availability, according to Pohrer.
For buyers with highly specific requirements — oceanfront views, modern, turnkey homes or homes on particular streets — public inventory can quickly dwindle to zero, the agent explained, leaving traditional online home searches with few, if any, options.
“I think most people think they probably don’t need a realtor and expect there to be something available in the area that they’re looking [for]. What you don’t realize is that Palm Beach is a very small place,” Pohrer detailed. “So if you’re looking for something specific, that narrows really quickly. You go from 10 options to five options to one option to no options, and then it’s up to us to find things that may be off the market.”
A service entrance outside a luxury home on South Ocean Boulevard in Palm Beach, Florida. (Getty Images)
With limited public inventory available to meet buyers’ demands, Pohrer said a secondary, unlisted “shadow” market operates through agents’ personal records and private conversations among brokers. High-net-worth homeowners who have no intention of publicly listing their properties may consider offers if buyers meet their asking prices. Pohrer pointed to recent off-market transactions that closed in Palm Beach for $97.5 million, $75 million and $58 million, while other unlisted properties are reportedly available for prices ranging from $17 million to $300 million.
As the interview with Pohrer wrapped up, his phone chimed with a new email notification. Pohrer said the message was from someone interested in pursuing a potential new off-market listing.
“On a daily basis, you get calls from…
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