What Are The Rich Investing In Right Now?

[Justin Moy]

Family offices included in this study had at least a $500MM net worth.

On average these family offices had 9% of their investable cash into real estate and infrastructure.

Within the real estate sector, 30% of family offices reported they plan to increase their exposure to residential real estate in the next year.

Another 30% are looking to maintain their current exposure to residential real estate.

Multifamily was a specific goal for some family offices because of the mixture of low supply and high interest rates which have made housing affordability more difficult for residents. These 2 factors are projected to continue pushing strong demand for apartments and residential rentals.

7% of family offices claimed they plan to invest in more office space. 4% in more retail13% are looking to expand their footprint in industrial with 28% saying they’ll maintain their current exposure.

Other emerging asset classes were data centers, sustainable food production, and biotech.

[Claude Goodman]

That explains why the prices of Multifamily are so high now relative to inflation and interest rates....Cash buyers are willing to accept current CAP rates which are below inflation rates and below lending rates.