Family offices are taking advantage of weakened real estate markets while many traditional investors remain cautious. Despite high interest rates and global uncertainty keeping others on the sidelines, these ultra-wealthy investment firms are using their long-term outlook to acquire undervalued properties, particularly in multifamily and commercial sectors.
Firms like Realm have already invested heavily, purchasing assets at significant discounts, including office buildings in San Francisco at a fraction of their previous value. While some investors remain hesitant due to market volatility, others see this period as an opportunity to secure strong assets at favourable prices.
The flexibility of family offices allows them to pursue deals that require patience. For example, Declaration Partners has committed to long-term real estate investments, such as extended leases in New York, which may not appeal to institutions focused on shorter timelines.
Although global sentiment on real estate is mixed, U.S.-based family offices show more optimism, with a notable portion planning to increase exposure. Real estate also remains attractive as a hedge against inflation and for its tax advantages, including depreciation benefits and strategies like 1031 exchanges.
Investors are targeting discounted opportunities across key cities, while also weighing risks such as financing costs and insurance. Some are even investing in distressed office assets or repurposing them into housing. Overall, family offices are leveraging their capital, flexibility, and long-term perspective to capitalise on a market others are hesitant to enter.
