{"id":1004756655,"date":"2025-05-05T04:24:03","date_gmt":"2025-05-05T12:24:03","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004756655"},"modified":"2025-06-03T04:22:38","modified_gmt":"2025-06-03T12:22:38","slug":"cres-new-money-movers","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/","title":{"rendered":"CRE\u2019s New Money Movers"},"content":{"rendered":"\n

Private wealth has become a remarkable source of capital on the global commercial real estate scene, with more than $600 billion put into U.S. assets through direct deals from 2013 to 2024, according to a new report from JLL<\/a>.<\/p>\n\n\n\n

That represents 40 percent of the more than $1.5 trillion invested globally. The report also showed that office properties were the preferred asset class.<\/p>\n\n\n\n

JLL reported a year ago on how private capital had begun filling the void<\/a> of institutional capital flow in commercial real estate investing.<\/p>\n\n\n\n

U.S. investors dominate cross-border deals<\/h2>\n\n\n\n

Since 2013, private wealth investors have made $277 billion in cross-border investments. American investors were the most active, purchasing $22 billion in assets outside of their home market, according to the report. Roughly 10 percent of global private wealth investors\u2019 allocations have gone to real estate, making it one of the fastest-growing investment segments for the sector.<\/p>\n\n\n\n

The U.S. is home to 46 percent of the world\u2019s billionaires. Asia Pacific and EMEA each account for 27 percent.<\/p>\n\n\n\n

These investments have a 6.4 percent compounded annualized return, exceeding the returns of traditional asset classes such as bonds, gold and REITs.<\/p>\n\n\n\n

\"Map<\/a>
The U.S. is the most popular region for private wealth investors with $604 billion, representing 40 percent of CRE transaction volumes acquired by private wealth from 2013 to 2024. Map courtesy of JLL<\/em><\/figcaption><\/figure>\n\n\n\n

U.S. should maintain its top status<\/h2>\n\n\n\n

The U.S. will continue to be a favorable place to invest for private wealth clients due to several factors,\u201d according to Katie Day, head of private wealth, Americas at JLL.<\/p>\n\n\n\n

\u201cThe U.S. real estate market is the largest market globally, offering unmatched depth, diverse asset classes, and the geographic diversification that spans gateway markets and \u2018momentum\u2019 markets across the Sun Belt,\u201d she told Commercial Property Executive<\/em>.<\/p>\n\n\n\n

\u201cNot only will the wealth of family offices in the U.S. continue to grow, but the way family offices access real estate will evolve and become easier through technology and specific products created for private investors.\u201d<\/p>\n\n\n\n

Having transacted $1.5 trillion over the past 10 years, JLL has been helping families navigate the CRE space for decades, enabling them to execute their current and long-term investment strategies.<\/p>\n\n\n\n

\u201cFamilies can be much nimbler than institutions and move faster when they see a great investment opportunity,\u201d she said. \u201cOur private wealth team is dedicated to helping families continue to access institutional-quality real estate opportunities globally.\u201d<\/p>\n\n\n\n

JLL also believes that the office sector will remain one of the most attractive asset classes for U.S. private wealth investors.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Most Popular Return-to-Office Policies Surprise Experts<\/a><\/p>\n\n\n\n

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This is expected to continue in 2025 and early to mid-2026, according to Mike McDonald, a senior managing director & co-head of JLL\u2019s office investment sales and advisory team.<\/p>\n\n\n\n

\u201cThe \u2018Great Basis Reset\u2019 that has occurred in the office sector post-COVID has created a tremendous amount of upside and opportunity for private, high-net-worth individual investors who want to take advantage of the pullback from institutional investors over the past several years and benefit from the attractive risk-adjusted returns in the office sector.\u201d<\/p>\n\n\n\n

\u201cAs we are already experiencing the influx of institutional capital into the sector, the opportunities for private wealth investors will dissipate over time as it always does during cycle reset moments,\u201d McDonald added.<\/p>\n\n\n\n

Office, a most-promising asset class<\/h2>\n\n\n\n

This potential upside exists even given the struggles in U.S. office performance caused in part by the pandemic, a surge in work-from-home arrangements and a general sputtering of return-to-office rates<\/a>.<\/p>\n\n\n\n

JLL has empirical data about trends and pricing from similar disruptions in the capital markets in the past, including the time of the RTC, Russian Ruble, Dot Com and the Great Financial Crisis.<\/p>\n\n\n\n

\u201cThe early investors in the office sector after those downturns outperformed their counterparts who invested later in the recovery phase of the associated cycle,\u201d McDonald said.<\/p>\n\n\n\n

He added that the investment market is quite different\u2014and more disciplined\u2014this time around as it\u2019s become a \u2018stock pickers\u2019 market based on the premise that ‘not all office is created equal.\u2019 The savvy and astute investors understand the bifurcation in the market from a standpoint of quality, vintage and location. JLL has been weaponizing the data that we possess to strategically and adequately advise our clients about investing in the sector, McDonald said.<\/p>\n\n\n\n

\u201cThere is a definite disconnect regarding risk-adjusted returns, and the market is taking advantage of this arbitrage. We firmly believe that office valuations\u2014for the upper echelon of the market\u2014will continue to increase as fundamentals exponentially improve at the asset level, and the capital market conditions and receptivity also improve at the macro level,\u201d he added.<\/p>\n\n\n\n

Investors who have purchased office assets in the past couple of years and are doing so in the current environment will be rewarded for the perceived risk taken, McDonald anticipates.<\/p>\n\n\n\n

\u201cOffice is definitely \u2018back,\u2019 and the question is, did it really ever leave in the first place?\u201d<\/p>\n\n\n\n

Private wealth fuels debt funds<\/h2>\n\n\n\n

The report also underscores the pivotal role private wealth investors play in U.S. commercial real estate, according to Zachary Streit, president of Priority Capital Advisory.<\/p>\n\n\n\n

\u201cAs institutional capital remains cautious, private wealth has become a primary driver of equity investments, particularly in office, industrial and retail sectors,\u201d he told CPE<\/em>.<\/p>\n\n\n\n

\u201cAdditionally, private wealth channels are increasingly fueling debt funds, offering diversified financing solutions.\u201d<\/p>\n\n\n\n

The U.S. continues to be the top destination for real estate investments worldwide, despite challenges such as fluctuating regulations, tariffs and currency issues, Jeff Holzmann, COO of RREAF Holdings, pointed out.<\/p>\n\n\n\n

He told CPE<\/em> that the increased funds invested in office spaces suggest that the market now believes this sector has hit its lowest point in the post-pandemic era, as the momentum to return to the office exceeds the trend of working from home.<\/p>\n\n\n\n

Even amid an economic pause, as investors wait to see what happens over the next several months, \u201csmart money is still investing in U.S. commercial real estate, buying distressed office assets in downtown New York, Los Angeles and San Francisco at 30 percent of 2019 market values,\u201d Ed Del Beccaro, EVP & San Francisco Bay Area manager of TRI Commercial\/CORFAC International, told CPE<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"

How private wealth is reshaping the sector\u2019s investment arena, according to JLL\u2019s latest report.<\/p>\n","protected":false},"author":3568,"featured_media":1004756703,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,21747,21749,51037],"tags":[32796],"class_list":["post-1004756655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-office","category-retail","category-trends","tag-jll"],"acf":[],"yoast_head":"\nCRE\u2019s New Money Movers - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Private wealth investors put more than $600 billion into U.S. commercial real estate through direct deals from 2013 to 2024, according to JLL.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CRE\u2019s New Money Movers\" \/>\n<meta property=\"og:description\" content=\"Private wealth investors put more than $600 billion into U.S. commercial real estate through direct deals from 2013 to 2024, according to JLL.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-05T12:24:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-03T12:22:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/CRE-transaction-volumes-by-region-featured.png\" \/>\n\t<meta property=\"og:image:width\" content=\"803\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/\",\"name\":\"CRE\u2019s New Money Movers - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/CRE-transaction-volumes-by-region-featured.png\",\"datePublished\":\"2025-05-05T12:24:03+00:00\",\"dateModified\":\"2025-06-03T12:22:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\"},\"description\":\"Private wealth investors put more than $600 billion into U.S. commercial real estate through direct deals from 2013 to 2024, according to JLL.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cres-new-money-movers\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/CRE-transaction-volumes-by-region-featured.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/CRE-transaction-volumes-by-region-featured.png\",\"width\":803,\"height\":620,\"caption\":\"The U.S. is the most popular region for private wealth investors with $604 billion, representing 40 percent of CRE transaction volumes acquired by private wealth from 2013 to 2024. 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