The big money is moving quietly, but deliberately.

Family offices—those private entities managing the capital of ultra-wealthy families—are ramping up their exposure to commercial real estate in 2025. And not by accident. According to the latest Knight Frank Wealth Report, 44% of global family offices plan to increase their CRE investments over the next 18 months.

This isn’t about chasing yield. It’s about building resilient portfolios in an era of higher rates, economic whiplash, and unpredictable equity markets.

The Shift Toward Tangible, Defensive Assets

Real estate has always been in the toolkit for wealthy investors, but this cycle is different. As traditional asset classes get squeezed, family offices are zeroing in on hard assets that produce real income and hold value through inflation cycles.

Industrial, multifamily, logistics, and specialized assets like data centers are leading the charge. But it’s not just the property type that matters—it’s how these assets are being acquired.

Family offices are bypassing the institutional playbook. They’re leaning into direct ownership, off-market access, and assets that align with long-term sustainability goals. They have patient capital and aren’t afraid to deploy it where others hesitate.

2025: A Rare Window of Opportunity

After two sluggish years in CRE transactions, the tide may be turning. As interest rate cuts loom, buyer activity is expected to pick up—but it won’t be a free-for-all. Institutions are still cautious. Debt remains expensive. And uncertainty hasn’t fully cleared.

That’s precisely why family offices are well-positioned. With low leverage, long hold periods, and strategic flexibility, they can act swiftly when others can’t.

This moment represents a unique alignment:

• Market dislocation

• Seller motivation

• Flexible, long-term capital ready to deploy

That’s a recipe for generational buying opportunities.

What Developers and Brokers Need to Know

Family offices don’t want mass-marketed product. They want relationships, access, and alignment.

If you’re in development, brokerage, or fund management, ask yourself: Are you structuring deals in a way that resonates with family office priorities? That means:

• Direct co-GP and JV structures

• Sustainability-forward design and operations

• Income durability with downside protection

• Long-term vision over short-term IRRs

These investors think in decades. Show them a path to steady growth, not a hockey-stick chart built on pro forma optimism.

The Takeaway

The era of family offices as passive LPs is fading. In its place: active, strategic capital that’s reshaping how deals get done.

As the commercial real estate landscape evolves, developers and investors who understand this mindset—and can offer access, transparency, and alignment—will have the upper hand.

The market doesn’t need more pitch decks. It needs more trusted partnerships. In 2025, family offices aren’t just players in CRE. They’re the ones moving the pieces.

About Daniel Kaufman

Daniel Kaufman is a real estate investor, developer, and founder of Kaufman Family Office. With projects across the U.S. and a focus on multifamily, BTR, and strategic partnerships, he writes about the intersection of capital, construction, and opportunity. Learn more at www.kaufmanfamilyoffice.com.