5 Key Takeaways from CBRE’s Report on Back-Office Lift-Outs in Real Estate 

As institutional capital regains momentum after a slowdown driven by interest rate spikes, investors are looking to increase returns by operating assets more efficiently. This includes outsourcing accounting, reporting and other non-core functions to third-party providers.  

CBRE has released a report highlighting the opportunities and challenges of lifting out fund accounting based on insights from real estate experts at Tishman Speyer, PwC, RXR Real Estate, Kirkland & Ellis and other major global real estate managers. Below are the key takeaways from this report. 

1. Why Real Estate Firms Are Turning to Lift-Outs 

Growth in real estate investment brings increasing complexity to fund accounting, as firms are being challenged to integrate different systems and markets and adapt to evolving ESG regulations. The COVID-19 pandemic drove many firms to rethink their business practices and turn to lift-outs, an alternative to traditional outsourcing which involves transferring fund accounting and administration teams to third-party providers.  

This approach ensures process continuity and preserves institutional knowledge while converting fixed costs into a more flexible, scalable solution. Lift-outs save valuable time, allowing investment managers to shift their focus from administrative processes to strategic business initiatives. In some business models, a lift-out can transform a cost center for one organization into a revenue center for another, aligning interests strategically for both parties and providing enhanced career opportunities for employees. 

2. How Lift-Outs Help Retain Talent and Knowledge 

One of the main reasons real estate firms prefer lift-outs over traditional outsourcing is the ability to retain teams, workflows and institutional knowledge — all essential in today’s complex real estate environment. This approach ensures operational continuity and supports strong client relationships while transitioning to a more efficient operational structure. At the same time, employees benefit by gaining new skills and unlocking growth opportunities. 

3. Using Lift-Outs to Support Scalable Growth

For many real estate companies, rapid growth can outpace the capacity of their existing operations. Partnering with a third-party provider through a lift-out allows businesses to pursue growth opportunities without being limited by internal resources or service-quality concerns. It also enables access to top talent without staffing constraints in certain markets and helps institutional investors support global growth without adding operational overhead. 

4. Enhancing Technology Flexibility with Lift-Outs

For companies looking to reduce their technology commitments, lift-outs enable them to leverage the third-party administrator’s advanced systems while redirecting capital expenditure to other strategic priorities. For businesses with established technology platforms, a lift-out offers the flexibility to retain existing systems while outsourcing operational functions. This minimizes the risks of data migration and supports a seamless transition. 

5. Key Considerations for a Successful Lift-Out

Lift-outs require thorough planning, powerful leadership and clear communication to minimize disruptions and ensure long-term success. It begins with selecting an outsourcing partner that aligns with your goals and can help maintain the team’s established culture. It expands to timely and detailed planning, from identifying lifted-out personnel and establishing compensation to ensuring data governance. 

Final Thoughts

Lift-outs are a valuable option for some organizations, offering access to expertise and resources while also providing an option to retain their technology and own their data. While often associated with cost savings, the true value of lift-outs lies in reshaping a firm’s operations, particularly during market uncertainty. When carefully planned and executed, a lift-out also preserves team continuity, creates new opportunities for employees and strengthens the firm’s capacity to scale.

Find more information on the benefits of lifting outsourcing accounting in the extended CBRE report.