High-net-worth individuals and family offices can be a lucrative, though difficult-to-access source of real estate investment capital. BNY Mellon's Boryana Zamanoff and CBRE's Zaahir Syed and Compie Newman discuss how to tap into funding from family offices and the strategies these investors are employing under current real estate market conditions.
Significant Pool of Capital: Family offices and high-net-worth individuals collectively represent hundreds of billions of dollars seeking real estate investment opportunities.
Access and Relationships: Family offices often do not entertain unsolicited approaches. It's crucial to build trusted relationships with their advisors who act as gatekeepers.
Investment Preferences and Structure: Family offices often prefer direct investments and opportunities where they can have more control and flexibility.
Market Conditions and Opportunities: High interest rates and current market conditions have prompted family offices to invest cautiously with a focus on data centers, logistics and housing.
Evolving Preferences: The preferences of the next generation are critical considerations. Younger family members often prioritize impact investing and newer asset classes.
