How Family Offices Invest in Real Estate: A Strategic Guide

Family offices are quickly becoming some of the most influential players in real estate. Backed by generational wealth and a long-term mindset, they approach investment not with urgency but with precision, patience, and purpose. Unlike institutional investors chasing quarterly returns, family offices have the freedom to focus on legacy, diversification, and true value creation. In this strategic guide, we’ll explore how family offices invest in real estate, from direct deals and REITs to governance structures and emerging trends.

What Is a Family Office & Why Real Estate?

A family office is basically a private setup created by very wealthy families to manage their money and personal matters. Some are built for one family, others serve several, but they all aim to handle things like investing, estate planning, charitable work, and making sure future generations are ready to take the reins. Families usually set one up when their assets are over $50 million, since it makes more sense at that level to have a team focused just on them.

Real estate plays a big part in this. It offers something stable, something you can see and touch that earns income and tends to go up in value over time. For families thinking about legacy and the long haul, owning property can help keep things steady from one generation to the next. It also helps spread out risk, especially compared to just holding stocks. In the end, it’s not only about owning buildings; it’s about influence, stability, and protecting long-term goals. That’s why real estate often becomes one of the cornerstones in a family office’s investment approach.

Key Investment Strategies

How Family Offices Invest in Real Estate

A lot of family offices kick things off by buying properties themselves. Owning real estate directly gives them more say in everything, from picking the tenants to making long-term decisions about the property. For many families, this approach feels more stable and personal, especially when they want a steady stream of income without relying too much on outside help.

That said, not everyone sticks to owning property outright. Some prefer putting money into things like REITs or private real estate funds. This route makes it easier to spread their investments out and get into deals that would be hard to manage on their own. It’s also helpful for families who’d rather avoid dealing with the day-to-day stuff. For those thinking about REITs, the benefits include steady income, less hands-on work, and the comfort of having experienced managers handle the details.

What They’re Buying and Where

When it comes to what family offices are putting their money into, there are a few standouts:

• Apartments, which usually bring in consistent rent
• Offices, especially those with long-term tenants
• Hotels, which can offer higher returns in the right markets
• Data centers, thanks to growing demand in tech and digital services

Each type comes with its own set of pros and cons. Some are safer, some have more upside; it really depends on what the family is aiming for.

As for where they’re buying, there’s a shift happening. North America is still important, but more families are looking elsewhere, too. Places in the Asia-Pacific region are gaining interest because of growth potential and the chance to diversify. Spreading things out across countries can help reduce risk from things like political shifts or currency changes, which is something many families are thinking more seriously about these days.

Looking at Different Kinds of Deals

Besides the usual real estate buys, some family offices are taking a closer look at more unique deals. That includes short-term loans, picking up properties that need work, or getting involved in projects that take a bit more time and planning. These types of deals come with more risk but can also bring strong returns if handled carefully.

One big advantage family offices have is that they don’t have to rush. They’re not tied to quarterly reports or outside investors pushing for quick results. That gives them time to be patient, to wait for the right opportunity, and to build something that lasts. For them, it’s not just about making money fast; it’s about long-term value and doing it their way.

Governance, Structure & Partnerships

How a family office is set up can shape everything. Some build full in-house teams to manage real estate directly. That means they have analysts, asset managers, and decision-makers all under one roof. Others prefer to outsource, bringing in outside experts when needed. Both models work, as long as there’s a clear structure around who decides what.

Partnerships are another key piece. Many offices team up with experienced developers or operators, usually through joint ventures (JVs). It’s a win-win: the partner handles day-to-day operations, and the family brings capital and vision. Some are also exploring private lending, basically acting as the bank in real estate deals.

And then there’s reporting and risk. Real estate isn’t just about buying property. It’s about managing it. That means regular updates, clear goals, and full transparency. Good governance doesn’t have to be complicated, but it does have to be consistent. When done right, it keeps investments aligned with the family’s goals and avoids surprises down the road.

Case Study Snapshot

Stoneweg is a family office based in Europe that’s been active in real estate for years. They’ve put over €5 billion into different markets across the region. Instead of hiring outside firms for everything, they built their own internal team to handle things like buying, building, and managing properties.

They don’t just stick to one method. Sometimes they buy and manage properties on their own. Other times they team up with partners. This way, they’ve worked on a mix of projects, from reworking homes in Spain to setting up logistics sites in Switzerland.

Their approach isn’t rushed. They focus on being involved, knowing the local scene, and moving when it feels right. It shows how a family office can grow steadily and still stay close to what they care about.

Key Trends to Watch

Looking into 2025, real estate is still a go-to for a lot of family offices. It’s one of the few assets that feels stable, offering regular income and some protection when inflation picks up. More families are also exploring things like real estate debt and less traditional deals that might offer better returns if timed right.

When it comes to how family offices invest in real estate, there’s no single playbook. Some are staying local, while others are branching out, especially into Asia-Pacific, where the mix of growth and diversification is pulling in interest.

But the way they approach real estate is shifting. Sustainability isn’t optional anymore, and families want real data behind every decision. Real estate investing today means understanding your goals, crafting a solid strategy, and staying tuned to market changes.

Wiss Services for Family Office Real Estate Investors

Wiss provides specialized support for family offices involved in real estate by helping align property investments with long-term financial objectives. The firm offers comprehensive guidance, whether families are acquiring properties directly, exploring REIT investment strategies, or setting up a complete real estate family office structure. Wiss assists with every step of the process, from deal sourcing to developing clear decision-making frameworks. The goal is to simplify complexity, maintain focus on strategic outcomes, and help families move forward with confidence.