When you think of commercial real estate, you might picture towering office buildings, shopping centers, or sprawling industrial parks. But have you ever wondered—who actually owns and invests in these properties?
The answer may surprise you. From major financial institutions to individual investors, commercial real estate is a diverse and dynamic market. If you already own investment property, understanding who else is active in this space can help you better position your assets—whether you’re preparing for a sale, considering a 1031 Exchange, or aiming to build a more diversified real estate portfolio.
At Realized®, we help property owners transition their wealth strategically. Here’s a closer look at who’s investing in commercial real estate today.
1. Institutional Investors
Large-scale investors like pension funds, insurance companies, private equity firms, and real estate investment trusts (REITs) are major participants in the higher end of the commercial real estate market.
- Pension Funds often invest in commercial real estate to generate stable, long-term income for retirees.
- Insurance Companies use it to hedge against inflation and align with long-term liabilities.
- REITs (Real Estate Investment Trusts) pool capital from many investors to purchase large portfolios of income-producing properties, offering both liquidity and diversification.
These groups typically invest in institutional quality properties such as office towers, shopping malls, logistics centers, and large apartment complexes in major markets.
2. High Net-Worth Individuals and Family Offices
High net-worth individuals (HNWIs) and family offices often view commercial real estate as a key piece of a diversified wealth strategy.
- They invest directly or through vehicles like Delaware Statutory Trusts (DSTs) and syndications.
- Real estate helps them balance risk, create passive income streams, and build multigenerational legacies.
At Realized®, we work closely with these investors to structure Investment Property Wealth Management® strategies that align with life goals like retirement income, estate planning, and tax efficiency.
3. Small and Mid-Sized Private Investors
Not every commercial real estate investor is managing billions. Many individual investors — like you — own smaller-scale properties such as:
- Multifamily buildings
- Retail strip centers
- Single-tenant net lease properties
- Warehouses or self-storage facilities
These investors often actively manage their properties, though many eventually seek ways to reduce landlord responsibilities and move into passive investments.
Through methods like DSTs, Realized® helps individual owners transition from active management to passive income while preserving the tax deferral benefits of 1031 Exchanges.
4. Crowdfunding Platforms and Private Syndications
New technology platforms have opened commercial real estate to a broader audience.
- Crowdfunding allows smaller investors to buy fractional interests in large properties.
- Private syndications pool capital from accredited investors to finance larger projects.
While these options offer access to deals that were once out of reach, they also may come with higher risks and less liquidity — making due diligence essential.
Why It Matters to You
Understanding who's active in commercial real estate can help you make smarter investment decisions.
Whether you want to scale up, diversify into passive investments, or exit with maximum tax efficiency, it's essential to know how the landscape is evolving — and where you fit.
At Realized®, we work with property owners to explore potential strategies for managing the tax and financial implications of investment real estate.
Ready to explore your next move in commercial real estate?
Connect with Realized® today to explore potential strategies for managing the tax and financial considerations of investment property.
