They see a $10 trillion opportunity in the next decade, but obstacles remain to widespread use of private investments.

Transparency in financial reporting, favorable partnership structures are taking on more importance for family offices in a riskier investment climate.

One factor driving interest is property owners using ground leases to unlock capital in a market where liquidity is tight.

HNWIs are also showing some interest in newer property segments, such as data centers and SFRs.

IRS scrutiny over who qualifies as a real estate professional is a constant. Recent court decisions serve as a strong reminder of the substantiation required to qualify as a real estate professional.

Opportunities remain for HNWIs and other players to invest in opportunistic funds or as L.P.s with private multifamily developers.

Cresset Real Estate Partners sources private market real estate investment opportunities for high-net-worth investors and family offices. It was a separate company until a partnership was formalized in 2021.