Private Wealth Shapes Global Commercial Real Estate
Private wealth investors have become a formidable source in global commercial real estate in the past decade, according to data and analysis published today by JLL.
Between 2013-2024, JLL tracked over $1.5 trillion in private wealth investments, comprising high-net-worth individuals, family offices, family-owned businesses, and selected private developers and property companies, deployed into global commercial real estate via direct deals.
«We're witnessing an increasingly diverse investor base looking to deploy capital into commercial real estate, with private wealth one of the fastest growing segments,» Richard Bloxam, CEO, Capital Markets, JLL, said.
«This class of investor is becoming one of the most active and influential participants in real estate, complementing the strengths of traditional institutional powerhouses. In the coming years, we expect private wealth participation to continue to increase via direct investment in property and operators, indirect investment in private real estate funds as well as taking other positions in the capital stack,» Bloxam added
Substantial Appeal
The US proved to be the most popular investment destination over the decade, drawing 40 percent of all private wealth investment volumes in commercial real estate, ahead of the United Kingdom (10 percent), Germany (7 percent), Australia (6 percent), and Hong Kong (4 percent). Japan, France, the Netherlands, Canada, and Sweden rounded out the top ten recipients between 2013-2024.
According to JLL proprietary data and analysis, office has emerged as the preferred investment preference of private wealth investors, attracting $464 billion in capital over the past decade. Living assets have also demonstrated substantial appeal to private wealth investors between 2013-2024, drawing $359 billion in capital.
During this period, private wealth investors were also active in retail ($282 billion), industrial & logistics ($185 billion), and hotels ($174 billion).
Family Fortunes Are Leading the Mark
«Sophistication in the private wealth space globally is evolving quickly. From New York’s skyline to Spanish wind farms and solar plants, family fortunes are leaving their mark, but they are also increasingly demonstrating a high degree of strategic acumen behind capital deployments into commercial real estate,” says Pamela Ambler, Head of Investor Intelligence, Asia Pacific, JLL.
