- 44% of global family offices plan to increase their commercial real estate investments in the next 18 months, drawn by CRE’s stability and inflation-hedging qualities.
- Economic uncertainty, rising interest rates, and stock market volatility are pushing wealthy investors toward tangible, income-generating assets like industrial, multifamily, and specialized real estate.
- Family offices are uniquely positioned to capitalize on current market dislocations, favoring direct ownership, long-term value, and sustainability-aligned investments.
According to ConnectCRE, family offices—private firms managing the wealth of the ultra-rich—are shifting gears in 2025. Knight Frank’s Wealth Report 2025 reveals that 44% of them aim to increase their real estate investments, highlighting a major trend toward stability as markets stay unpredictable.
Why Family Offices Are Betting on CRE
These offices have long valued real estate for its ability to protect wealth. Now, with stocks and bonds facing headwinds, real estate looks even more attractive. It serves as a hard asset that holds value during inflation and market swings.
Unlike public investments, real estate offers steady income and protection against economic shocks. Furthermore, as traditional lenders retreat, family offices can step in with flexible, long-term capital.
Where the Opportunities Are
Family offices are focusing on sectors with strong demand and limited supply. Industrial properties, multifamily housing, logistics hubs, and data centers top their lists.
The market, after two slow years, may pick up again. With interest rate cuts expected in 2025, buying activity should increase. These offices, relying less on debt and more on direct ownership, are ready to move fast.
They prefer:
- Exclusive, off-market opportunities.
- Assets with solid, long-term growth prospects.
- Properties that meet sustainability and ESG standards.
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Strategic Buyers in a Changing Market
Today, nearly half of family offices already own CRE. Many now see 2025 as a rare buyer’s market. Institutional investors are still cautious, leaving room for such offices to acquire quality assets at better prices.
Brokers and developers who understand family offices’ focus on direct ownership, patience, and sustainability will have an edge. Offering tailored, exclusive opportunities will build stronger, lasting relationships.
Why This Trend Matters
Family offices are becoming a bigger force in CRE. Their focus on patient, stable investments reshapes how deals get done. They are not looking for quick flips; instead, they want assets that grow steadily over time.
What’s Next
As the economy stabilizes, expect family offices to play an even larger role in real estate. Those who adapt to their needs—offering exclusive access, long-term value, and green investment options—will lead the next chapter of CRE., and ESG-alignment—will lead the next wave of CRE transactions.
