What are Asset Management Fees in Commercial Real Estate?

Learn more about the process of co-investing in commercial real estate.

What are Asset Management Fees in Commercial Real Estate?

Learn more about the process of co-investing in commercial real estate.

Co-investing in real estate is one of the best ways to access the benefits of commercial real estate investing without needing to become the sole owner and operator of a large property.

And when you co-invest through a syndication led by an experienced sponsor, you can build wealth completely passively. At Excelsior Capital, for example, we do all the work of sourcing and vetting deals, managing the property, and coordinating with all the investors and partners.

The process couldn’t be easier for our investors: all they have to do is choose the deal(s) they want to invest in and then sit back and wait for the returns to start hitting their bank accounts.

In exchange for these services, most real estate sponsors will charge asset management fees.

What Do Asset Management Fees Pay For?

Asset management fees take up just a small percentage of the revenue generated by a real estate co-investment, and the benefits you receive in exchange are significant.

These fees cover the time and costs associated with deal sourcing, investor onboarding, and ongoing tasks like reporting, managing the asset and overseeing investor relations.

Keep in mind that this differs from property management fees, which cover the costs of operating and maintaining the property.

How are Asset Management Fees Determined?

Asset management fees are typically set up in one of two ways. In some cases, sponsors charge a flat rate to their investors.

More often, sponsors will take a fixed percentage of the revenue a property generates.

Choose the Right Sponsor for Your Next Real Estate Investment

At Excelsior Capital, we’re committed to making the co-investment process as easy as possible for our investors. We handle all the heavy lifting associated with sourcing, vetting, and managing our deals, and our extensive network allows us to find off-market deals that you’d likely be unable to access otherwise.

We’re also focused on finding the highest quality of commercial real estate deals, and our strategy has delivered consistently strong results for our investors.

In particular, we focus on commercial assets in healthy secondary markets, especially asset classes with low volatility, including medical office buildings and flex/light industrial properties.

To learn more about Excelsior Capital and our direct co-investment opportunities, please fill out this short form to get in touch with a member of our team.

Previous Articles


The Ultimate Guide to Commercial Real Estate Investing

Learn everything you need to know to assess the benefits of a commercial real estate investment and make the best decisions to get started.


Q1 2023 Commercial Real Estate Investment Update

The commercial real estate industry has seen significant shifts and challenges over the past year, and the first quarter of 2023 was no exception.

Understanding the Waterfall Structure in Real Estate Private Equity Investments

Understanding the Waterfall Structure in Real Estate Private Equity Investments

Learn about this distribution framework used in real estate private equity investments. Understand the components of a waterfall structure…


How Much Money Do I Need to Start Investing in Commercial Real Estate?

We frequently have conversations where people tell us, “I want to start investing in commercial real estate, but I’m not sure if I have the capital.”


Benefits of Owning Commercial Property over Residential

While both types of real estate investments have their benefits, investing in CRE can be more advantageous for several reasons.

The Revolution That Wasn’t

How has technology impacted modern finance and created an asymmetrical relationship between Wall Street and individual investors? In this episode, we speak with Spencer Jakab, the author of The Revolution That Wasn’t and editor of the Wall Street Journal’s Heard on the Street column.

Tax Savings Secrets: How Cost Segregation Analysis Can Save You Money

How can cost segregation analysis help real estate investors maximize their returns? In this episode, John Hanning explores the potential benefits of cost recovery studies and depreciation.

What is a Family Owner’s Manual and Do I Need One?

It’s time to make sure you and your family are set up to continue success for generations to come. Today, Josh Kanter shares his journey transitioning from practice as a transactional attorney to reorganizing his family’s activities under a single-family office.

Key Characteristics of High-Performing Family Offices

Are family offices becoming more popular? In this episode, Robert Daugherty dives into the importance of having a functional family office, and the role of the Chief Learning Officer in it.

Excelsior Capital

A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.

Interested in learning more about Excelsior's investment opportunities?

Excelsior Capital

104 Woodmont Blvd, Suite 120
Nashville, TN 37205




Disclaimer: Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.