Palantir Technologies took to X this week to announce its move to Miami.
The publicly traded AI software firm, led by CEO Alex Karp, is leasing space at Industrious, a co-working space in Aventura. Boosters of Miami real estate rejoiced, but will the move, and other recent HQ relocations to South Florida, lift up the market the way Citadel did in 2022?
While demand for ultra high-end homes — $40 million and up — is strong, it can’t prop up the rest of the market. Some agents say they are seeing a trickle-down effect, while others say the opposite.
“It’s not consistent throughout the market,” said Danny Hertzberg. “[Increased demand has] been overwhelmingly focused on single-family homes, but there have been a few major offers and interest on the condo side. It hasn’t trickled down to the lower price points.”
It’s also too soon to tell, but the recent billionaire boom, which is part of a greater shift propelling wealth and companies to the Sunshine State, is more evidence that owners and C-suite executives are looking to Florida as a safe (and warm) place to park their investments and avoid red tape and income taxes.
Mark Zuckerberg and his wife, Priscilla Chan, are eyeing the waterfront compound at 7 Indian Creek Island Road, which is on the market for $200 million. This pending deal follows a recent flurry of activity, which includes Google co-founder Larry Page’s three residential buys, totaling $188 million, in Coconut Grove. A proposed wealth tax in California brought Page to Miami.
Palantir made the move on paper ahead of state regulations targeting the use of artificial intelligence in Colorado, which go into effect this summer, and following protests against the company’s ties to ICE and the greater military-industrial complex. Palantir has a market value of more than $312 billion and about 4,000 employees.
Palantir’s announcement was abrupt, and the company has been cryptic about its long-term plan. We don’t know if Industrious is Palantir’s permanent new home, where it plans to open additional offices if it does, and how much space it’s looking to take. Will the company bring most of its employees, or just the decision-makers?
It’s also a move that was probably in the works for a while, and likely helped by its co-founder, billionaire Peter Thiel, who moved to Miami in 2020.
What we’re thinking about: Do you have any details on Palantir’s move? Send me a note at [email protected].
CLOSING TIME
Residential: In Palm Beach, trusts tied to Lili and Ambrose Monell, Maia Monell and Maurizio Morello sold a lakefront estate at 635 Crest Road for $57 million. The buyer was another trust, with Cameron Casey as trustee.
Commercial: Welltower unloaded five senior housing properties with 720 units combined in Palm Beach County for $81.1 million. The buyer was Excelsior Care Group. The properties are located at: 3001 South Congress Avenue and 3600 Old Boynton Road in Boynton Beach; 7225 Boca Del Mar Drive and 375 West Yamato Road in Boca Raton; and 16150 South Jog Road in Delray Beach.
— Research by Mary Diduch
NEW TO THE MARKET
Atlanta-based developer Mary Frances Garrett of M2B Properties listed her oceanfront home in Palm Beach for $69.9 million. The 7,000-square-foot, seven-bedroom and 10-bathroom home at 1285 North Ocean Boulevard is on the market with Compass’ Elizabeth DeWoody. The 0.7-acre property has 125 feet of water frontage. The British Colonial-style house includes a heated saltwater pool and a spa.
A thing we’ve learned
Hedge funds and investment firms began to bet against Trump’s tariffs last year by buying the rights to potential tariff refunds at pennies on the dollar from struggling importers. Now that the Supreme Court stuck down Trump’s tariff policy on Friday, they stand to make millions of dollars.
Elsewhere in Florida
- State lawmakers voted to rename Palm Beach International Airport after President Donald Trump. The rebranding could cost more than $5.5 million, Politico reports. Gov. Ron DeSantis still has to sign the bill into law.
- The Florida House also voted to eliminate non-school property taxes on primary homes, a measure that next heads to the state Senate. It would then require 60 percent of voters’ approval in a November election to become law, according to WLRN.
- The Donald J. Trump Presidential Library Foundation took legal ownership of 2.6 acres of land next to the Freedom Tower in downtown Miami, the Miami Herald reports. The final deed requires construction of a presidential library, museum and/or center to begin within five years.
