Sample parts of the 2019 FORE Study

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. 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. 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