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.”

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 people that say, ‘Hey, they’re willing to sell,’ or, ‘Maybe I’ll sell for this,’ and I’ve got to write notes down to see who’s willing to sell and at what price and keep a log of this,” the agent said. “Most people don’t realize what’s available or what could be purchased.”

“I’m hearing [about] them on the ground, and if you don’t have representation, you’re just not going to find those things,” Pohrer added.

Historically among the hottest and quietest months, August and September typically see fewer residents in Palm Beach as seasonal homeowners leave for cooler destinations. However, in August 2026, Palm Beach Island recorded 10 single-family home sales, compared to just two in August 2025 — a fivefold increase that brought year-to-date single-family sales on the island to 82, up from 58 during the same period in 2025, according to figures provided by Pohrer.

“I think people over the past few years have become accustomed to having inventory. And when they started noticing this summer, things aren’t coming on… Or if there’s anything else that’s off the market that may be coming on, I want to jump on it before the season comes,” he noted. “We did five deals that were not listed on the MLS, which was a complete shock to me because normally you’re doing one deal during the entire month of September.”

As these off-market deals occur outside public databases, brokers reportedly face intense pressure from rival agents attempting to intercept and poach unlisted sellers once rumors surface.

“It’s an absolute battle. Every one of the deals that I did off market, you find out about them, that owner may talk to you about representing them, but then other people find out about it. So then all of a sudden that’s where the battle comes in,” Pohrer described his experience. 

“Other brokers are chasing those owners trying to get a piece of the action. So the entire time you’re basically kind of like a sniper in a manhole,” he continued, “trying to just stay safe and keep your clients and not get poached. So… when one slips away, it’s a gut punch at these numbers.”

“[Deals] tend to take months and months and months because sellers that are off-market, traditionally speaking, are not fully committed to selling. So it’s just being persistent, being polite, not being pushy and eventually getting them over the edge.”

Pohrer said broader economic factors, including interest rate changes by the Federal Reserve, have little effect on some ultra-wealthy Palm Beach buyers and sellers. Florida’s property tax laws, however, can play a significant role. Longtime homeowners with qualifying homestead exemptions benefit from limits on annual increases in their properties’ assessed values. When a home changes ownership, those assessment protections generally do not transfer to the buyer, and the property is typically reassessed at its market value.

“If you jump out, you can’t jump back in,” Pohrer cautioned. “There’s a tax issue that’s coming up on the ballot this year where, as an example, a house that’s valued at… $70 million dollars… your taxes on this are $225,000 if you purchase this home, the next buyer will be paying over a million dollars.”

As 2026 draws to a close, Pohrer expects publicly listed inventory on Palm Beach Island to remain low through 2027, pointing out that even the off-market “shadow” inventory could shrink further.

“I expect inventory levels to stay right where they are, or less. The shadow inventory may disappear because maybe that shadow inventory is only out there because they see something else that’s available,” he said. “Inventory levels won’t go up outwardly, and the internal shadow market may dwindle even further if [sellers] don’t have an option for their next place.”