Wealthy Investors Target Industrial Property As Interest Rates Remain High

High interest rates are prompting family offices to become more selective about real estate investments, with many prioritising discounted properties and assets that can support higher rents, according to investment executives who spoke to CNBC.

HB Wealth chief investment officer Joel Houck said larger family offices are showing interest in industrial warehouses, farmland and timberland. These assets can offer inflation protection and tax advantages, although their value depends partly on how easily rents can be adjusted.

Investors are also monitoring debt levels, with HB Wealth generally avoiding real estate funds using leverage above 65%.

Data centers remain another area of interest, but some investors are wary of long-term commitments and technological obsolescence. Cresset’s Mike Silverman views them as technology investments carrying risks beyond traditional property ownership.

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Higher interest rates have made family offices pickier about investing in real estate https://t.co/4PN94BPmsO

— CNBC (@CNBC) October 23, 2026

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