Family Offices Are Doubling Down on CRE in 2025

The landscape of private wealth is shifting, and CRE is increasingly becoming a focal point for family offices. According to The Wealth Report 2025 by Knight Frank, 44% of global family offices plan to expand their exposure to commercial real estate over the next 18 months. This renewed interest comes at a time when traditional investment avenues remain volatile, reinforcing real estate’s role as a hedge against inflation and economic uncertainty.

Why Family Offices Are Betting on CRE

Family offices—private investment firms managing the wealth of ultra-high-net-worth individuals (UHNWIs)—have long favored real estate for its stability and wealth preservation. But today’s market conditions are making it an even more attractive opportunity. Economic uncertainty, fluctuating interest rates, and stock market volatility are prompting these investors to seek out tangible, income-generating assets.

Real estate’s appeal lies in its resilience. Unlike equities or crypto, it’s a hard asset that retains intrinsic value. It has historically performed well in inflationary environments, as rising rents and property values offset cost pressures. And with traditional lenders pulling back, family offices are in a unique position to step in and capitalize on market dislocation.

Certain property sectors are particularly attractive. Industrial, multifamily, and specialized real estate continue to see strong demand, making them prime targets for family office capital. These investors are drawn to the long-term fundamentals of logistics hubs, data centers, and high-growth residential markets where supply remains constrained.

A Market Primed for Strategic Buyers

After two years of slowing transaction volumes due to rising debt costs and investor uncertainty, the investment landscape is poised for a shift. As interest rate cuts become more likely in 2025, investment activity is expected to pick up. Family offices, with their longer investment horizons and lower reliance on debt, are well-positioned to acquire high-quality assets at favorable valuations.

Nearly half of the family offices surveyed in The Wealth Report already hold CRE assets and are actively looking to expand their portfolios. Many see this as a buyer’s market—an opportunity to acquire distressed or undervalued properties while institutional capital remains on the sidelines.

For brokers, developers, and investment managers, understanding how family offices deploy capital is key. Unlike institutional investors, family offices prioritize long-term value over short-term gains. They often prefer direct ownership or joint ventures over REITs and traditional funds, seeking investments that offer stability and appreciation over time.

To engage effectively with these investors, industry professionals should focus on:

• Access to Exclusive Deals: Family offices favor direct, off-market transactions rather than widely marketed listings.
• Long-Term Growth Potential: They seek assets in prime locations with strong appreciation prospects rather than high-risk, speculative deals.
• Sustainability & ESG Alignment: The next generation of wealth holders is increasingly prioritizing energy efficiency, green building certifications, and responsible investing.

Positioning for the Next Wave of Investment

As family offices prepare to ramp up their real estate allocations, 2025 is shaping up to be a year of renewed momentum. Those who understand the unique priorities of these investors—long-term stability, direct ownership opportunities, and sector-specific growth—will be best positioned to capitalize on this shift.

For CRE professionals, building strong relationships with family offices isn’t just about closing deals today—it’s about aligning with a powerful and patient capital source that sees real estate as a generational asset. With market conditions creating new opportunities, those who can navigate this landscape effectively will play a key role in shaping the next phase of CRE investment.