Family office allocation — how it differs from institutional
Family office allocations differ structurally from institutional consensus in three ways: higher hospitality/branded residential (~12% vs. 3–4%); higher commodity office accessed via opportunistic GPs; meaningful direct operator-platform stakes (5–10% in a vertically integrated operator).
The branded residential overweight reflects durable UHNW demand and access to private wealth — the 33–39% Knight Frank premium is most accessible to family office capital that can buy direct in $5–25M pre-construction tranches.
OZ 2.0 strategically valuable for multigenerational planning: the permanent extension and 30-year FMV step-up from the OBBB Act are powerful when combined with traditional estate planning. Rural QROFs offer 30% basis step-up at 5 years.
Co-invest with mega-platforms — family offices increasingly have access to Blackstone, Brookfield, KKR co-invest at fee-and-carry concessions. Build LatAm/US corridor exposure (Miami, Costa Rica, Dominican Republic, Mexico). And consider direct operator-platform equity stakes as the highest expected-return position available to a family office willing to take operating risk.