Family office real estate is one of the largest holdings for the wealthiest families. When a family with real money invests in property, it rarely just buys a REIT. It builds a portfolio it owns and controls outright.
A family office is the private investment arm of a wealthy family. It runs the money, the taxes, and the assets under one roof. The US has roughly 10,000 single family offices, according to Thesis Driven. Real estate is a core holding for most of them.
Their approach is worth studying. More investors can follow it than most people assume. The model is simpler than it looks. This article covers four things: how much family offices put into real estate, how they invest, why the asset suits them, and how anyone can do the same.
Key Takeaways
- ▸Family offices favor real estate they own and control directly.
- ▸They source it off market and hold it for years.
- ▸They value it for steady income, inflation protection, and passing wealth down.
- ▸Individuals can follow the same principles.
- ▸The hard part is deal access and financing, which is where a family office service helps.
What Is Family Office Real Estate Investing?
Family office real estate investing is how a wealthy family’s investment arm buys and holds property. It favors owning assets outright over funds or REITs. The family controls each deal. It sources many off market and holds for years, not months.
A private family office runs the investment side of a wealthy family’s balance sheet. It handles the money, the tax planning, and the assets in one place. Larger offices even keep a dedicated real estate team.
Real estate fits that structure well. The office can buy a building outright and manage it on its own terms. It can then pass the asset to the next generation. There is no fund manager in the middle, and no share price to watch. That control is the point. A fund investor takes what the manager decides. A direct owner sets the terms.
How Much Do Family Offices Invest in Real Estate?
Family offices hold about 11% of their portfolios in real estate on average. US offices hold closer to 18%, per UBS. Real estate has also bounced back to about 39% of family office deals in 2025. That is its highest share in years.
The UBS Global Family Office Report 2025 surveyed 317 single family offices. Their average size was $1.1 billion in assets. Real estate came in at about 11% of the average portfolio, and roughly 18% for US offices. That makes it one of their largest alternative holdings, behind only private equity.
The trend points up. The PwC Global Family Office Deals Study 2025 tracked more than 20,000 family offices. It found real estate bouncing back to about 39% of family office deals in early 2025. That is the highest level since 2019. The two figures measure different things (portfolio weight versus deal activity). Both point the same way: real estate matters more to these families now, not less.
How Family Offices Actually Invest in Real Estate
The dollar figures matter less than the method. Family offices tend to invest the same handful of ways. The pattern holds across regions.
Direct ownership over funds. Nearly two thirds of family offices now invest directly, per Campden Wealth data. They would rather own the asset than hold a share of someone else’s portfolio.
Off market access. They favor off market deals over marketed listings, as Coldwell Banker Commercial reports. Private relationships surface deals before a broker ever lists them. That keeps competition and pricing in check.
Control over every decision. Direct ownership gives the family a say over acquisition, management, and exit timing, a point Impact Wealth stresses. They choose when to renovate, refinance, or sell. No fund mandate forces the timing.
Long, patient horizons. Family offices think in decades, not quarters. Little of their real estate has a horizon under three years. About 37% target nine years or more, per Knight Frank.
Institutional financing. They lean on less debt and better loan terms. That lets them buy quality assets at sensible prices, especially when other buyers pull back.
The thread through all five is ownership. The family holds the asset, calls the shots, and lets time do the work. None of it depends on luck. It depends on access and patience.
Why Real Estate Suits the Family Office Model
Real estate suits family offices for a few clear reasons. It pays steady income. It hedges inflation. It preserves capital. And it is a tangible asset they can hold, improve, and pass down. That fits a mandate measured in decades, not quarters.
Wealthy families prize stability over a quick win. Real estate gives them steady cash flow. It also hedges inflation, which Impact Wealth names as a core reason they keep buying. When currencies wobble, a leased building keeps paying. Real estate also moves differently from stocks and bonds. That balance steadies the whole portfolio.
Time horizon is the other fit. The capital is patient, so these families can ride out down cycles. Other owners are often forced to sell into them. Direct ownership of a hard asset, held for the long term, suits wealth meant to last generations.
What Kinds of Real Estate Do Family Offices Buy?
Quality matters more than headline yield. Family offices tend to buy well located assets with strong tenants, and they steer clear of speculative deals. A steady tenant on a long lease beats a risky bet with a bigger number on paper.
Net lease property fits the brief well. The tenant handles taxes, insurance, and upkeep. The owner collects rent with little day to day work. That mix of steady income and low effort is what patient capital looks for.
Industrial and logistics assets have drawn similar interest. Online shopping and supply chain demand keep those buildings full. Prime commercial and multifamily round out most portfolios.
What Individual Investors Can Learn (and Where They Get Stuck)
The ideas are not secret. They are not reserved for billionaires either. Any investor can favor direct ownership, look for off market deals, and hold for the long term.
The trouble is execution. Three walls tend to stop individuals:
Deal access. The best net lease properties trade through private networks, out of public view. Without those relationships, a single buyer sees mostly the deals others have passed on.
Financing. Family offices borrow on institutional terms. A single buyer usually faces higher rates, smaller loans, and a slower process.
Time and scale. Direct real estate takes acquisition, legal, and management skill. A single investor rarely has a team. And a single property concentrates risk, a tradeoff PwC’s research flags directly.
This is why many investors reach for real estate syndications or REITs instead. Those routes are easier to access. They also spread risk across many assets. The tradeoff is steep. You give up ownership, control, and most of the upside to the sponsor or the fund. That is a fine deal for some investors. It is the whole problem for anyone who wants what a family office gets: to own the asset, control it, and keep the income.
Learn More About Working with Custom Capital →
How to Invest Like a Family Office Without Being One
You do not need $1 billion to invest like a family office. A private family office service can do the heavy lifting. It sources off market deals, arranges institutional financing, and hands you 100% direct ownership of a single asset. It is the same model the wealthiest families use, scaled to one accredited investor.
This is the gap Custom Capital was built to close. The firm runs the family office playbook for accredited investors. It does not reserve it for families with their own staff.
The pieces line up with what family offices do. Custom Capital sources off market NNN properties through private channels, not public listings. Its programmatic institutional lending facility gives one investor the terms an institution would get. That replaces the one off loan hunt most buyers face. The investor then owns 100% of the asset directly. The tenant covers taxes, insurance, and maintenance, so landlord duties stay low. Income generally starts in the first month of ownership.
How the model works in practice is simple. The team sources and vets the deal. It arranges the financing. The investor holds the property outright. The firm has done this across more than $460M in acquisitions and 125+ closed deals. It is the family office approach, without the family office overhead.
Final Thoughts: The Family Office Model, Made Accessible
Family offices have shown what works in real estate. Own the asset directly, source it off market, and hold it for the long term. Keep control the whole way. The ideas are simple. The access is what has always been scarce.
That part is changing. An accredited investor can now put the same model to work. There is no need to build a family office from scratch. If real estate is part of the plan, the clearest next step is to talk through which off market deals fit the situation.
Invest Like a Family Office
You do not need to build one from scratch. Talk through which off market deals fit the situation, and own the asset directly.
Frequently Asked Questions
What is a family office in real estate?
A family office is the private investment arm of a wealthy family. In real estate, it buys and manages property directly on the family’s behalf. It favors owning assets outright over holding fund shares, often through a dedicated real estate team. The UBS Global Family Office Report 2025 shows real estate as one of their largest alternative holdings.
How much do family offices allocate to real estate?
On average, family offices hold about 11% of their portfolios in real estate. US offices hold closer to 18%, per UBS. Separately, PwC found real estate rebounding to roughly 39% of family office deals in 2025. The two numbers measure different things, but both show real estate as a core holding.
Do family offices prefer direct real estate or REITs?
Most prefer direct ownership. Nearly two thirds invest directly, and they favor owning buildings or joint ventures over REITs and pooled funds, as Coldwell Banker Commercial reports. Direct ownership gives them control over management and exit timing. A REIT share does not.
What kind of real estate do family offices buy?
Family offices favor stable, income producing commercial property they can hold for years. Common choices include net lease, industrial, and prime commercial assets. They tend to avoid speculative deals, per Impact Wealth. Long horizons are the norm, with much of the capital targeting nine years or more.
Can an individual invest like a family office?
Yes, in practice. An accredited investor can follow the same approach: direct ownership, off market sourcing, and long horizons. A private family office service provides the deal access and institutional financing that make it possible. That delivers the family office model without the cost of running one.
