Family office real estate has become an increasingly popular investment opportunity for many families. Family offices, which are private wealth management firms serving single-family or extended family assets, such as commercial real estate, have seen a growing demand for real estate investments. This is because of the unique benefits that come with investing in a physical asset such as real estate. Read on to learn more about family office real estate and how you can diversify your portfolio through commercial real estate.
Real estate investments can provide a steady stream of income, as well as potential appreciation over time. The stability of the investment allows family offices to diversify their portfolios and reduce risk while still enjoying the potential rewards. Plus, real estate investments don’t have the same volatility risks associated with other asset classes, making it a smarter option for long-term wealth preservation.
Family offices can benefit from the expertise of professional real estate investors who can provide more insight into the market and help identify potential opportunities with greater return potential. Professional advisors also bring an understanding of how different markets affect one another, allowing family offices to better allocate their assets and maximize returns.
Real estate investments offer a number of tax advantages that family offices can take advantage of. For example, they may be able to defer taxes on gains from their investments and may be eligible for other tax incentives such as depreciation. In addition, family offices can also benefit from the liquidity of real estate investments by selling them when market conditions are favorable and taking profits quickly.
Real estate investments can also provide stability and income to a portfolio, as they tend to hold up better during economic downturns. This is especially true of properties that are leased out or managed by a property management company. That’s why investing in real estate through family offices can be a great way for families to diversify their portfolios and reduce risk.
Many STRATAFOLIO customers are the next generation of a family taking over as their parents retire. If you’re in this position, we encourage you to contact us for a demo to see how we can help your family office be success with a commercial real estate portfolio, too.