Skip to Content
real estate investing and the family office
White Paper

Real estate & the family office

October 25, 2021 / 10 min read

Successful management of a family office investment portfolio requires a carefully guided strategy focused on asset diversification, risk mitigation, experience, and transparent oversight. Real estate, as an alternative asset class, is consistently recognized for its importance in family office portfolios.

Successful management of a family office investment portfolio requires a carefully guided strategy focused on asset diversification, risk mitigation, experience, and transparent oversight.

Part of this strategy should include a thoughtful allocation to alternative asset classes that can serve to mitigate portfolio risk. Diversification allows the portfolio to thrive over a market cycle subject to varying macroeconomic conditions that may impact returns across various asset classes. One strategy that many family offices have historically embraced is an allocation to tangible real estate assets.

According to the 2019 FOX Investment Survey, the average family office allocates 14% of its assets to real estate — a meaningful number when one considers that the mean investable assets were reported to be $586 million in the same study. Based on these figures, the average family office holds approximately $82 million in real estate investments.

The ownership of tangible real estate assets allows for greater control over investment performance and returns, but also requires much more active oversight than investment in more passive asset classes.

What’s inside

In this white paper, we’ll provide a primer for family offices interested in commercial real estate investing, focusing on four core topics:

Download the white paper

Related Thinking