Practice Briefing: The significance of real estate in family office portfolios

According to the Bloomberg Billionaire Index, the world's top 500 richest people added $2.2 T to their fortunes in 2025, now having over $11.9 T in personal wealth. This personal wealth is often managed and grown via a family office.

A family office is a private company that handles the investment management and wealth management for wealthy families and high-net-worth individuals. Their goal is to grow and transfer wealth across future generations, seeing a strong multi-generational focus for asset protection and wealth transfer. The capital used by family offices is the family's own personal wealth, so a long-term investment strategy is used.

Family offices have operated for over 150 years and have taken on increased importance in recent years (both by number and wealth); particularly with entrepreneurial leaders in technology companies. Setting up a single family office typically requires $50 M - $100 M in wealth, with 15% of family offices having over $1 B in assets. Multiple family offices involving an entity established by asset managers for several families jointly typically require $10 M- $30 M per family to be part of a multiple family office.

This practice briefing examines the operation of family offices, with a particular focus on the asset allocation decision-making by family offices and the level of real estate in family office portfolios. Case studies are used to highlight the strategies used by family offices to obtain their real estate exposure. Recent trends are also highlighted, particularly concerning the wealth transfer process to future generations and the preparation of younger family members to have the skills for future leadership roles in the family office.

Family offices have been established by wealthy families. The following list includes some of the leading family offices globally and the players involved:

1. Cascade: Bill Gates (Microsoft): $170 B in assets

2. Excession: Elon Musk (Tesla): $250 B

3. Bezos Expeditions: Jeff Bezos (Amazon): $108 B

4. Iconiq: Mark Zuckerberg (Meta): $80 B (Note: Iconiq is a multiple family office for several technology entrepreneurs)

5. Koop: Larry Page (Google): $140 B

6. Lawrence: Larry Ellison (Oracle): $160 B

7. Walton: Walton family (Walmart): $225 B

8. Bayshore: Sergey Brin (Google): $100 B

9. Ballmer: Steve Ballmer (Microsoft): $85 B

10. Pontegadea: Amancio Ortega (Zara): $115 B

11. Edizione: Benetton family (Benetton): $69 B.

Several prominent wealthy individuals have chosen not to establish family offices, but operate their wealth activities embedded in their major company operations. This includes Warren Buffett (Berkshire Hathaway), Donald Trump (Trump Corporation) and Jensen Huang (Nvidia). In many cases, real estate has been an important component of the investment activities of these family offices. Subsequent case studies in this practice briefing will drill into specific details of the real estate activities for these family offices.

Table 1 provides examples of other major family offices in the UK, Australia, Germany, France, Spain, Hong Kong and Singapore; further highlighting the international significance of family offices. In particular, Singapore and Hong Kong have seen a rapid increase in the number of family offices in recent years, both in number and dollar value of these family offices.

The following sections will provide details of the operational aspects of family offices, particularly concerning the asset allocation process, investment management and the role of real estate in family office portfolios.

In addition to their wealth management role, family offices also carry out the legal, tax, day-to-day bookkeeping and philanthropy functions for their activities. However, it is important to note that many of the larger family offices conduct their philanthropy activities via separate multi-billion-dollar foundations. These include the foundations for Novo Nordisk, Stichting INGKA, Bill Gates, Jensen Huang, Chan Zuckerberg Institute, Tata, etc. These foundations focus on philanthropy in major social causes, including health, poverty reduction, disease eradication, societal development, education and innovation. The top 100 foundations have over $725 B in assets (SWFI, 2025).

Given the private nature of these family offices, exact numbers are difficult to obtain. It is estimated that there are over 3,400 single-family offices and over 1,500 multiple family offices, with assets exceeding $4.7 T. The Americas, Europe and Asia–Pacific are the leading regions for family offices. Significant growth in family offices has occurred in recent years, particularly in the Asia–Pacific region (e.g. Singapore, Hong Kong), now accounting for 20% of family offices globally (compared to only 17% in 2019) (Preqin, 2025). This has also been driven by the growth of technology entrepreneurs in many countries.

Whilst investing in the traditional assets of stocks, bonds and cash, family offices are also actively engaged in the alternative asset classes, including private equity, real estate, venture capital, hedge funds, private credit, infrastructure, cryptocurrency, start-ups and art/collectibles. Often, these are areas of personal interest to the family. Both in-house expertise and asset consultants provide significant support for their investment decision-making. This is particularly the case where family offices lack expertise for the newer asset classes. Typically, a long-term investment horizon is used. This has seen family offices move from a passive to an active investment agenda, as well as deepening their investment expertise in the alternative asset classes. Further details of family office asset allocations (particularly real estate) are given in subsequent sections of this practice briefing.

Staffing and associated costs for the family office are high, and vary considerably depending on the scale of the family office. Often, a chief investment officer (CIO) is involved, as well as an investment committee to manage the investment portfolio at a day-to-day level and at a strategic level. In 22% of cases, family offices outsource the CIO role. Additionally, analysts, accounting, legal and administrative support are needed in the operation of the family office. Family members are actively involved in the investment committee and investment decision-making, often seeing the Chief Executive Officer (CEO) founder directly involved. In terms of investment decision-making, this is largely attributed to the CEO founder (48%), investment committee (30%), CIO (7%) and family (11%). A senior leadership team provides the day-to-day operational base for the family office, where senior representation for each of the major asset classes is included in the senior leadership team; this includes stocks, private equity and real estate. A board of directors may also be required for larger family offices.

Family members are actively involved, with typically 2–3 generations supported by the family office (93% of cases). This family involvement is typically achieved via a Family Council, which is a separate body that sets the family's vision, values and strategy to ensure investment decisions align with family values. The Family Council typically meets monthly to ensure the intergenerational transition is managed successfully and to ensure long-term family cohesion and ongoing success. Issues such as employment rules, shared goals and a unified strategic direction are important, as well as educating the younger family members to learn about business and the investment language. This is crucial, as many of the founders of these family offices are transitioning other family members into senior leadership roles in the family office, as part of the succession planning process.

By integrating younger family members into the investment decision-making process, many family offices have seen an increased focus on impact investing in the areas of sustainability, renewable energy, healthcare and affordable housing. A closer alignment of investment strategy with family values has been evident from this impact investing dimension.

There has been considerable research regarding the significance of real estate in pension fund portfolios. This includes Andonov et al. (2013), Bajtelsmit and Worzala (1995) and Worzala and Bajtelsmit (1997). Real estate allocations and strategies used to deliver this real estate exposure by pension funds were highlighted. From a practical perspective, 5–10% of pension fund portfolios in real estate is seen to be a typical allocation for real estate by pension funds.

However, for family offices, there is limited research available. This research has largely focused on the practical aspects of family offices concerning operational issues, investment strategy, asset classes used and succession planning. Many of these papers were published in the Journal of Wealth Management; these include Decker and Lange (2016), Ferreira and Patanella (2013), Gray (2005), Pereira and Marcovici (2022), Rivo-Lopez et al. (2017), Scherer (2018) and Wessel et al. (2014).

From a real estate investment and family offices perspective, only Kilpatrick (2007) has addressed this issue, in the broad context of real estate investment by the rich and famous, not being limited to just family offices. This clearly sees a gap in the literature concerning real estate in family offices, particularly given their increased significance globally in recent years.

This academic research concerning family offices has been supplemented by major industry reports by the leading advisory groups, asset managers and specialist family office consultants. Often, this is based on extensive surveys of family offices (up to 380 family office respondents from their client bases) and focuses on operational issues, the asset allocation process and recent strategic issues for family offices.

These industry reports include:

1. advisory groups: e.g. Deloitte (2024a, b), Knight Frank (2025), Preqin (2025), PwC (2024) 

2. asset managers: e.g. Bank of America (2025), BlackRock (2025), Citibank (2024), Morgan (2024), UBS (2024) 

3. specialist family office consultants: e.g. Campden Wealth (2023), Ocorian (2025), With Intelligence (2025).

These specialist family office consultants have also developed family office databases (access via private subscription) consisting of specific family office details, including a profile of the family office structure, background of family wealth, investment strategies, investment intentions, external manager preferences, asset allocation details and associated companies and foundations. Reports for specific family office groupings (e.g. Asia top 200 family offices) are also available. A range of reports is also provided by specialist family office consultants (e.g. Capgemini, Dakota, Fintix, FOX, IQ-EQ, Praemium and Simple).

The following details for the asset allocations in family offices are derived from a consensus of various client surveys of family offices conducted by the major advisory groups and asset managers, e.g., Bank of America, BlackRock, BNP-Paribas, Citibank, Deloitte, Goldman Sachs, JP Morgan, UBS. These client surveys involved responses from 126–380 family offices in their family office client databases.

The typical asset allocations for a family office comprises the traditional assets of stocks (26%), bonds (10%) and cash (12%), as well as the alternative assets of private equity (17%), real estate (14%), venture capital (5%), hedge funds (5%), private credit (4%), commodities (2%) and infrastructure (1%). This sees traditional assets accounting for 48% of the asset allocation and alternative assets accounting for 52% of the asset allocation. Recent years have also seen an increased risk appetite by family offices.

As seen in the previous section on asset allocation by family offices, real estate is an important asset class. The allocation to real estate (14%) is typically only exceeded by the allocation to stocks (26%) and private equity (17%). Using case studies, this section highlights the strategies used by family offices to achieve this high-quality real estate exposure.

Importantly, 68% of family offices invest in real estate, supported by in-house real estate expertise (65%) and the use of real estate asset managers. 44% of family offices expect to increase their allocation to real estate over the next twelve months. In terms of real estate investment, their strategies include acquiring, developing and managing real estate assets.

A range of real estate investment types is used by family offices. Direct real estate investment is clearly the preferred investment type, followed by non-listed funds (#2), joint ventures (#3), debt (#4) and real estate investment trusts (REITs) (#5). In the case of non-listed real estate funds, they typically specify areas not to be involved (e.g., no emerging markets, minimum fund size), as well as a demonstrable fund manager track record in the area. The much lower preference for REITs reflects family offices having a long-term real estate strategy and less focus on liquidity. In terms of real estate sub-sectors, office, retail and industrial real estate are preferred, as well as luxury residential, with an increasing focus on the alternative real estate sub-sectors of healthcare and data centres.

Amongst the real estate styles, value-add is preferred (63%) more so than core (37%) by the family offices. This strategy is typically different from that seen for pension funds, which prefer core (80%) to value-add (14%) or opportunity (6%) (ANREV, 2025). To deliver this real estate portfolio, direct real estate is preferred (56%) compared to using a real estate asset manager (37%). This is different from the private equity portfolio in family offices, where the use of fund managers (52%) is preferred to direct investment (47%). In many cases, these real estate acquisitions by family offices have been significant, with 20% of acquisitions exceeding $500 M in value. Going forward, 33% of family offices see real estate as an opportunity, with 20% of family offices seeing themselves as underweight in real estate (ANREV, 2025).

The following short case studies highlight the real estate strategies used by several major family offices to achieve their often significant real estate exposure:

Cascade is the family office for Bill Gates (Microsoft), with assets of over $170 B. Real estate is a significant asset class in Cascade, seeing an extensive diversified real estate portfolio.

This includes a $131 M estate (66,000 sq ft) in Medina, Washington, a $43 M beachfront home in San Diego and a 314-acre private island in Belize. Cascade also has over 270,000 acres of farmland and a 30-acre equestrian estate assemblage. The Ritz Carlton hotel in San Francisco is also owned by Cascade. As part of Strategic Property Partners, Cascade has also undertaken mixed-use developments, including the $3 B Water Street Tampa project.

Cascade also has significant stakes in Four Seasons Hotels and Resorts (71%), in Strategic Hotels and Resorts (a US REIT; 10%) and in Storage Mart, a self-storage provider.

Pontegadea is the family office of Amancio Ortega (Zara), with assets of over $115 B. Pontegadea has over $20 B in trophy real estate assets globally in major office, retail and logistics real estate, having a long-term real estate investment strategy in prime locations. This office portfolio includes major offices in London, Paris, Madrid, New York, San Francisco, Washington, Chicago, Toronto and Vancouver. Significant logistics and retail assets are also in Pontegadea's real estate portfolio in the US, Canada and Asia.

On reviewing the MSCI/Real Capital Analytics database (over $9 T in real estate transactions), the authors found Pontegadea to be the #1 family office for real estate transactions over 2016–2025, with over $8 B invested in real estate in the last ten years. This accounted for ten of the top 50 real estate transactions by family offices over 2016–2025, including a Toronto office (#2; $916 M), London office (#6; $785 M), Vancouver office (#7; $784 M) and London office (#9; $713 M). Other significant recent real estate transactions by Pontegadea include office properties in Madrid ($547 M), Barcelona ($283 M), Glasgow ($277 M) and Paris ($227 M).

With $108 B in assets, Bezos Expeditions is the family office of Jeff Bezos (Amazon). With $700 M in real estate, their real estate strategy is to acquire adjoining properties to create private, secure compounds. This sees major properties in Miami, Beverly Hills, New York, Maui and Washington. Land holdings in Texas (165,000 acres) are also in their real estate portfolio.

Koop is the family office of Larry Page (Google), with $140 B in assets. Their real estate portfolio of $188 M includes several waterfront properties in Miami, seeing an accumulation of real estate assets.

Lawrence is the family office of Larry Ellison (Oracle), with assets of $160 B. Their real estate portfolio of $1.75 B includes luxury homes, hotels, trophy commercial properties and a Hawaiian island. This includes homes in Miami, Malibu, San Francisco, Lake Tahoe and London and Lanai Island, Hawaii.

With $69 B in assets, Edizione is the family office of the Benetton family. Their real estate portfolio has over $1 B in assets, comprising 76 premium, diversified real estate assets across twelve countries, including Italy, France, Spain and Portugal. Luxury real estate assets, as well as commercial and industrial real estate, are in this real estate portfolio, including the historic department store, Fondaco dei Tedeschi, in Venice.

Ballmer is the family office of Steve Ballmer (Microsoft), with $85 B in assets. The real estate portfolio comprises $150 M committed to affordable housing vehicles (via Avanath Renaissance Fund and Vistria Housing Fund), as well as ownership of the $1.2B Intuit Dome (LA Clippers basketball stadium).

Iconiq is the family office of Mark Zuckerberg (Meta). Iconiq functions as a multi-family office serving the investment interests of a number of technology entrepreneurs. Iconiq has over $300 M in real estate, including a $23 M mansion in Palo Alto (Silicon Valley), a $6 M estate in Malibu and properties at Lake Tahoe. Iconiq also has 1,000 acres on the island of Kaiai, Hawaii.

Access is the family office of Len Blavatnik (Access Industries) with $35 B in assets. Access has a global real estate portfolio of $3.3 B, comprising luxury hotels, and commercial and industrial real estate, seeing premium, high-value assets in London, New York and France. This includes a number of premium hotels; e.g. Grand-Hotel du Cap Ferrat.

Excession is the family office of Elon Musk (Tesla), with $250 B in assets. Excession divested its Los Angeles properties ($100 M), with Elon Musk adopting a “own no house” policy in 2020. Excession now focuses its real estate activities on 2,500 acres for the SpaceX project. This sees Excession having limited real estate holdings.

Given the often private/secretive nature of many family office portfolios, it is very difficult to get full details of their real estate activities. As such, it is likely that several of the above family office real estate portfolios are underestimates of their fuller real estate activities.

Overall, these family office case-studies have highlighted the significant role of real estate in many family office portfolios, with a range of real estate investment strategies used to acquire these premium real estate assets.

Table 2 identifies some of the recent trends concerning family offices. Importantly, these trends highlight the sophistication of family offices as investors and how they are managing the challenges of technology and intergenerational wealth transfer.

In particular, family offices are becoming more sophisticated in their staff teams, the use of asset managers and the effective use of technological infrastructure. The use of technology includes both the operational aspects and the potential use of Artificial Intelligence (AI) in investment decision-making. It is still early days for the use of AI in investment decision-making, with family offices more likely to currently invest in AI companies and start-ups.

Similarly, in their intergenerational transfer of wealth challenges, family offices are increasingly reflecting the family values of younger family members via their roles on family councils. This includes an increased focus on ESG issues. Intergenerational wealth transfer will be a critical issue for family offices in the next ten years.

Due to the private (and often secretive) nature of family offices, many family offices do not release full details of their operations and asset allocations. However, family offices are significant investors, often with multi-billion-dollar portfolios. Globally, family offices have over $4.7 T in assets.

Importantly, real estate is seen as a significant asset class by family offices, typically comprising 14% of their asset allocation. A range of real estate investment strategies is used by family offices to obtain this real estate exposure, with the most popular strategy being direct real estate investment.

Given their significant levels of real estate investment and their extensive use of asset managers, it is important for all levels of real estate professionals to increase their depth of understanding of real estate in family office portfolios. This understanding needs to be at an operational level and at a strategic real estate investment level. Given that only 65% of family offices have in-house expertise in real estate, opportunities for consultancies and asset managers to advise on the operational, asset allocation and strategic aspects of real estate in family office portfolios will expand considerably going forward. This is particularly important, with the continued significant growth of family offices globally and the increasing focus on intergenerational wealth transfer by family offices in the near future. Hopefully, this practice briefing has expanded the depth of understanding for real estate professionals of the importance of family offices as significant players in the real estate investment space.