U.S. family offices’ interest in real estate investments — which had declined in the late 2010s as offices looked to diversify — is picking up again, especially when it comes to multifamily and industrial real estate.
Real estate accounts for almost one quarter of new investments made by families, according to the U.S. version of PwC’s 2024 Global Family Office Deals Study.
“Families are still looking for opportunities in real estate,” said Jonathan Flack, PwC’s Global and U.S. Family Office and Family Business Leader. “It fits with their investment style because it is long-term in nature and can provide cash flow.”
He noted recent high interest rates may not have deterred family offices: “Families have less concern about high interest rates because they are typically borrowing less money for their real estate deals.”
The report, which covers findings for the year that ended in September 2024, also offers advice for family offices looking at real estate investments:
- Invest in a mix of commercial, residential and mixed-use developments.
- Focus on specific subsectors, such as affordable housing.
- Stay agile as market dynamics, including interest rates and inflation, change.
- Develop a strong real estate advisory team to help with sourcing, due diligence and asset management.
