Real estate management for family offices

Introduction

Real estate is the one asset that unites virtually every single family office portfolio across the globe. Whether held purely for investment purposes or for personal and private reasons, property is an integral part of wealth preservation. In fact, the UBS Family Office 2025 report states that globally, real estate accounts for approximately 10% of average family office portfolios. Therefore, the commonality is not if a family holds property, but rather how they choose to manage it.

For some, real estate is an extension of the family’s identity. The most famous that come to mind are Buckingham Palace and, in recent times, the infamous Mar-a-Lago. For others, it is treated as a highly structured, yield-generating family enterprise, and the families leading the charge in this regard are the Saudi Royals.

The reality, though, is that for most family offices, it is a blend of the two. Most find themselves straddling the fine line between personal, emotionally held assets and hard-nosed financial investments. While there is no perfect way to ‘get it right,’ there are strategies to deploy that can help avoid administrative pitfalls that drain resources, as well as services that can ensure every asset, from the family farm to the logistics warehouse, serves a clear, defined purpose for the family.

Why property still matters

For generations, real estate has offered wealthy families numerous benefits, including diversification, income generation, a hedge against inflation, and significant tax advantages. All these benefits remain highly relevant today. In an era marked by volatility and persistent inflation, property’s tangible nature provides a comforting stability when the fluctuation of paper assets seems in constant turmoil.

Real estate also fits well with the long-term approach that family offices often prefer. Unlike many other investments, real estate does not require frequent reporting, so families can plan for the future and invest with patience.

Finally, as the saying goes, ‘God is not making any more land,’ so if you buy and hold property, it will likely be more valuable in the future. And, even if making a profit is not the primary goal, real estate presents a great way for the next generation to get involved in real, hands-on business activities instead of only working with abstract financial products. This experience can help them develop financial skills and a sense of responsibility.

“Real estate ownership is often measured not in days or months but in years and generations. A real estate transfer between generations allows families to appreciate what has been built, assess what can be accomplished, and execute the vision for the next generation.” -Simple Expert, Seth Chadwell.

Where family offices fall short

Aside from investment, one of the biggest challenges family offices face in real estate management is the lack of a one-stop solution to meet all property needs—including legal, tax, maintenance, security, and staffing requirements. With so many moving pieces, property management is often overlooked or delegated to family office staff who already handle critical responsibilities such as investment accounting, philanthropy, and governance.

When family office staff also have to manage maintenance schedules and household staff, they end up stretched too thin. In addition to this, as if the ‘administrative creep’ wasn’t enough, property is also a sensitive issue, where the principal can be very much involved. The administrative team faces a challenge in balancing the need to respect the principal’s preferences with the goal of making the process more professional.

One way to solve this is to partner with an external vendor, particularly in managing private residences. By engaging an external property management or household firm, the family office can shift the administrative burden of vendor vetting, staff contracts, and reactive maintenance. This frees up the C-suite to concentrate on fiduciary and strategic duties, transforming household management from a constant headache into a smooth, invisible service that operates strictly to the family’s standards.

Overcoming the hurdles

Whether dealing with investment or private property, a good way to handle real estate management is to make the process more professional. Often, this involves working with outside experts. By teaming up with specialist firms such as Maritime Capital, family offices can tap into deep knowledge across different geographical areas and specific property law.

This approach lets family offices access expert knowledge without hiring costly full-time staff for specialised roles. Outsourcing in this way is not about giving up control, but about gaining extra skills and resources. These partnerships can make operations run more smoothly, especially when it comes to managing private homes.

When a family office hires an outside property management or household firm, it can hand off tasks like handling staff contracts and dealing with maintenance issues. This allows family office staff to focus on their main responsibilities. As a result, household management becomes smooth and almost invisible, always meeting the family’s standards.