Blackstone has agreed to acquire a prominent retail and office building on Palm Beach’s Worth Avenue from an entity linked to billionaire investor Ken Griffin. The reported $86 million transaction underscores continued demand for luxury retail real estate in one of South Florida’s most tightly held and expensive commercial markets.
Key takeaways
- Blackstone is set to buy the 49,000-square-foot property at 125 Worth Ave.
- The reported purchase price is $86 million.
- Griffin acquired the three-story building for $83 million in 2023.
- Palm Beach’s retail vacancy rate is below 1%, with rents nearing $92 per square foot.
Blackstone expands its luxury retail holdings
The property sits along Worth Avenue, Palm Beach’s primary shopping and dining corridor. The three-story building includes retail and office space, with Truist Bank and yacht brokerage Ferretti Group among its ground-floor occupants.
Blackstone Real Estate principal Elena Clarfield said the firm sees strong fundamentals in high-street retail and considers Palm Beach one of North America’s strongest luxury retail markets. The acquisition gives the global landlord exposure to a corridor known for high-end brands, affluent visitors and limited available space.
Griffin’s Palm Beach strategy evolves
The reported sale price is only modestly higher than the $83 million Griffin paid for the property in 2023, according to property records. The transaction follows Griffin’s sale last year of a neighboring Worth Avenue site to TZ Capital for $80 million.
The deals come as Griffin continues to reshape his South Florida real estate portfolio. In Miami, his investment firm, Citadel, has taken control of an entire block for a planned $2.5 billion headquarters.
Worth Avenue draws major investment
Blackstone’s purchase follows several substantial transactions on Worth Avenue. Reuben Brothers and Crown Onyx Investments acquired the 128,000-square-foot Esplanade 150 Worth Ave. for $200 million in March, while Acadia Realty Trust bought a 10,000-square-foot building at 225 Worth Ave. for $43 million.
The activity reflects the scarcity of quality properties in Palm Beach and investor confidence in the area’s luxury-oriented tenant base. High-profile retailers including Chanel, Louis Vuitton and Ferragamo operate along the avenue.
Market conditions remain favorable
Palm Beach’s retail vacancy rate is below 1%, while rents are the highest in Palm Beach County at nearly $92 per square foot, according to a Cushman & Wakefield report. Countywide retail vacancy is below 4%, and average rents are approaching $39 per square foot after rising 7% year over year.
Nearly 370,000 square feet of retail space is under construction across the county. Retail tenants absorbed more than 230,000 square feet in 2026, and investment sales reached $690 million during the first half of the year—the market’s second-strongest first half and its highest total since 2022.
Those conditions are expected to keep attracting institutional buyers such as Blackstone, particularly to well-located properties with established tenants and durable luxury-market demand.