In an intriguing sign of the times, investment expert King also reports a big change in strategy among family offices. Today they’ve shifted in precisely the opposite direction—abandoning time-honored stock and bond portfolio investments. This shift indicates that family offices are increasingly prioritizing alternative asset classes. They are especially attracted to real estate because they want to diversify their portfolios and earn strong, stable returns in times of economic volatility.
In a recent Kelley Roadways interview, King went beyond the surface to explain his contrarian strategy. He noted how sexy these middle-market deals looked—that is, those under $50 million. He underscored how these transactions create special opportunities for family offices. Or they can leapfrog into opportunities that allow them to capitalize on less competitive spaces within the economy. Family offices can increase their odds for outsized returns by focusing on smaller investments. This strategy provides them a way to avoid the brutal competition that’s common in larger trades.
King is placing important wagers on office buildings that are going for a song today. With all the changes happening to work culture and economic conditions, he feels it’s the perfect opportunity. Equation savvy investors can take advantage of opportunities and buy undervalued properties. His approach is an extension of a conviction that high-quality, well-located office buildings will continue to be in demand, despite the shifting dynamics of the market.
For those looking to dive deeper into King’s smart, creative strategies, the full interview with King is online and well worth watching. It provides a deep dive into how and why family offices are reconsidering their investment thesis. More importantly, it highlights how they’re reorienting themselves for today’s economic realities.
For anyone interested in weekly news and analysis about commercial real estate investment trends, King has launched a separate Property Play newsletter as well. This free, weekly publication provides the latest news, smart analysis and sharp commentary from across the TRII network right to subscribers’ inboxes. Those who are interested can subscribe to the newsletter at Property Play Newsletter.