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Sample Family Office Real Estate Study 2019

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Sample parts of the 2019 FORE Study

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Sample Family Office Real Estate Study 2019

  1. 1. 2019 US FAMILY OFFICE REAL ESTATE REPORT 1 HOW MANY FAMILY OFFICES HAVE A REAL ESTATE OPERATING COMPANY 52.08%, 47.92%, Yes No Source: The Family Office Real Estate Magazine Study FIGURE 10 : PERCENTAGE OF OFFICES THAT HAVE A REAL ESTATE OPERATING COMPANY Of the family offices that manage their properties, 52.08% have an operating company that helps to oversee their assets. This is typically a team that focuses on the various disciplines that are needed to manage the properties which may include some to help with acquisitions, property management, or asset management. THE FAMILY OFFICE REAL ESTATE MAGAZINE WWW.FAMILYOFFICEREM.COM
  2. 2. 2019 US FAMILY OFFICE REAL ESTATE REPORT 2 HOW FAMILY OFFICES INVEST INTO REAL ESTATE 28.40% 29.01% 40.74% 1.85% Only in your own deals As the GP As the LP I don't invest in Direct Real Estate HOW A FAMILY OFFICE HAVE THEIR REAL ESTATE ASSETS MANAGED 26.67% 19.05% 54.29% We manage our real estate internally We use outside managers we use both FIGURE 8: HOW INVESTMENTS ARE MADE INTO DIRECT DEALS (more than one choice could be made) FIGURE 9: USE OF REAL ESTATE MANAGEMENT Over the last few years, direct investing has been on the rise with family offices from private equity to venture capital to real estate. This trend is continuing with 40.74% of family offices investing only as the LP. 29.01% investing only as the GP and 28.40% only investing in their deals. As all boats rise in a rising tide, the question is what will happen when the market turns and goes back into a recession, which will happen one day. Will these family offices have done the proper due diligence to weather the storm, or will family offices start to look at funds again that provide professional management with a diversified portfolio. We believe many family offices will. Family offices that created their wealth in real estate, or has an internal platform will manage their real estate internally. However, when the resources are not available to manage them themselves, they will turn to third parties to help. The exception is properties that are nearby where they live. Source: The Family Office Real Estate Magazine Study Source: The Family Office Real Estate Magazine Study THE FAMILY OFFICE REAL ESTATE MAGAZINE WWW.FAMILYOFFICEREM.COM
  3. 3. 2019 US FAMILY OFFICE REAL ESTATE REPORT 3 THE MOTIVATION BEHIND WHY FAMILY OFFICES INVEST INTO REAL ESTATE BEYOND RETURNS (multiple answers were permitted) 0.0% 20.0% 40.0% 60.0% 80.0% Location Costs Opportunities to invest directly Level of control Tax benefits Liquidity Level of diversification Legal security Understanding of the laws and… Opportunity to partner with other… Opportunity to make a positive social… Ability to create generational wealth Other 38.2% 5.8% 61.7% 47.0% 55.8% 8.8% 52.9% 2.9% 14.7% 26.4% 17.6% 76.4% 2.9% Source: The Family Office Real Estate Magazine Study Family offices want to use real estate to create generational wealth (76.4%) but also enjoy being able to invest directly into real estate (61.7%) This is due to the ability to understand precisely what they are investing into and to have some control. Family offices do understand that real estate is an integral part of a portfolio as it provides diversification provides tax benefits. FIGURE 14: MOTIVATION TO INVEST INTO REAL ESTATE THE FAMILY OFFICE REAL ESTATE MAGAZINE WWW.FAMILYOFFICEREM.COM

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