What Is a Penthouse?

A penthouse is a luxury residential unit on or near the top floor of a building, typically distinguished by superior views, larger floor plans, premium finishes, private outdoor terraces, and direct elevator access.

In luxury high-rise buildings, penthouses are the most exclusive and most expensive units — reflecting the combination of the highest elevation, the best views, the largest floor plates, and the most premium finishes available in the building. True penthouses in luxury towers often span the entire top floor or multiple top floors and feature private rooftop terraces, pools, and outdoor kitchens.

Sub-penthouse: A sub-penthouse is the floor or floors immediately below the penthouse level — typically offering similar views at a slightly lower price point. Sub-penthouses are often better values than the penthouse itself, offering comparable view quality at meaningfully lower prices.

Prestige Signature Penthouse: In branded residence towers, the most exclusive penthouse unit is often given a proprietary name — such as the 'Prestige Signature Penthouse' at Aston Martin Residences Miami — and marketed as a unique asset at the very top of the building's pricing structure.

Investment characteristics: Penthouses tend to be the most liquid luxury units in a building during strong markets and the least liquid during weak markets. The pool of buyers for a $20 million penthouse is significantly smaller than the pool for a $5 million unit in the same building. However, penthouses also tend to hold their premium over the building's other units across market cycles.