Higher interest rates have made family offices more selective about real estate, with some focusing on heavily discounted assets with strong pricing power. Michels Family Office typically targets high-single-digit or double-digit yields on cost, such as by buying a heavily discounted office building with a known tenant or investing in large retail spaces. HB Wealth has also observed renewed interest in industrial warehouses, farmland, timberland and housing, which can provide inflation protection and tax benefits through depreciation shields and constrained supply. Investors must nevertheless monitor fund leverage and generally avoid borrowing above 65 %, while several remain cautious about data centers because of their long commitment periods and technology risk.
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