There was an increase from 30 percent in 2019 to 42.9 percent in 2020 of real estate portfolio allocations to growth by family office, according to a report by Evergreen Property Partners.
The family-office allocation to real estate and to the types of real estate investments stays consistent once again with the market, with direct investing being the area where co-investments follow the most significant investments.
The report’s authors believe that real estate fund investing continues to be minimal due to the non-transparency concern from family offices, along with the concern about fees that many funds charge.
REITs are low among the allocations primarily due to a lack of understanding of these types of real estate investments.