As a new generation of ultra-wealthy investors emerges, family offices are increasingly turning to commercial real estate as a core strategy for preserving and growing capital. With billions shifting hands through the ongoing “Great Wealth Transfer” and new fortunes created through artificial intelligence and cryptocurrency ventures, high-net-worth individuals are reassessing how and where to deploy capital. Commercial real estate is rising to the forefront.
North America is now home to more than 970,000 individuals with net worth exceeding $10 million, a figure projected to surpass 1 million by 2028. Meanwhile, billionaires in the U.S. collectively control trillions in wealth. As this capital base expands, so does the number of family offices tasked with managing it. Globally, family offices are expected to grow from just over 6,000 in 2019 to more than 10,700 by 2030.
Commercial real estate is proving particularly attractive at this stage of the cycle. After a sharp slowdown in transaction volume following the 2021 peak, pricing resets and moderating interest rates are creating perceived entry opportunities. Direct real estate ownership already accounts for roughly 22% of the average family office portfolio, and nearly half of surveyed offices indicate plans to increase allocations.
Unlike institutional investors, many family offices are pursuing more tailored, tax-efficient strategies. Tools such as 1031 exchanges and bonus depreciation remain critical components of long-term wealth preservation. At the same time, some families are forming their own investment platforms or partnering with like-minded offices, seeking greater alignment, flexibility, and control than traditional fund structures often provide.
Several high-profile family offices have already launched dedicated real estate vehicles, while smaller offices are also becoming more active buyers. Multifamily assets, credit strategies, and repositioning plays are among the areas drawing interest. For many families, real estate remains one of the few tangible asset classes that offers both income generation and intrinsic value.
As institutional capital recalibrates and traditional asset managers broaden their investor base, family offices are stepping into a more prominent role within commercial real estate. With patient capital, long-term horizons, and customized investment mandates, they are positioned to influence the next phase of the market’s recovery and growth.
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