Commercial real estate (CRE) is one of the world’s largest asset classes, with a value of over $120 trillion in 2025. However, almost 90% of this number remains illiquid. This means only a small fraction can be bought or sold quickly at fair value. 

This lack of liquidity has long frustrated investors, developers, and institutions, tying up capital in office towers, retail centers, and industrial parks for months or even years. This major problem haunting the real estate industry is now being strategically solved using tokenization. 

Tokenization has changed how CRE works by turning traditionally illiquid properties into tradable digital tokens. This simply means that you can fractionally invest in commercial properties by purchasing tokens that can be sold and bought just like shares. This leads to high liquidity and access for potential investors.  

So, let us analyze why CRE is so illiquid, how tokenization works, its benefits, and the best and safest tokenization platforms that you can check out. 

Why is 90% of Commercial Real Estate Illiquid?

Commercial real estate is usually considered to be very reliable and provides healthy returns despite larger market volatility. So, why is liquidity a big problem in this industry?  

So, traditionally, when you think of liquidity, you usually picture stocks or bonds you can buy or sell almost instantly. However, CRE transactions require complex legal documentation, approvals, huge funds, and often lengthy negotiations. A typical “quick” commercial deal can still take months to close.

Key Reasons Behind CRE Illiquidity:

‍High Capital Requirements: Purchasing even a small retail plaza or office building often requires millions of dollars of equity, plus layers of debt. Moreover, it is a known fact that interest rates for commercial mortgages are higher than residential ones. This also adds to the cost of investment. 

‍Complex Due Diligence: Investors must verify zoning, environmental reports, tenant leases, and conduct structural inspections. These are processes that routinely take weeks or months.

‍Limited Buyer Pool: The kind of capital required to invest in commercial real estate is enormous. Only certain investors have the expertise and resources to buy and manage CRE, further narrowing the market.

‍Regulatory Constraints: CRE sales are often governed by local, state, and federal regulations, adding layers of compliance and approval.

Because of these hindrances, owners often discount sale prices, and that too to attract a limited pool of buyers. Effectively, sellers bear extended holding periods, sometimes passing incur losses or minimal profits even when market conditions are favorable.

How Real Estate Tokenization Solves This Problem?

Firstly, let us understand what tokenization is:

Tokenization is the process of converting ownership rights or cash flows of a real-world asset into digital tokens on a blockchain. Each token represents a fraction of the asset’s value. For example, instead of buying a $5 million office building, you might purchase 1,000 blockchain tokens at $5,000 each. 

Here, each token entitles you to a proportional share of rental income, appreciation, and governance rights. This means that when you plan to sell, you do not need to look for a buyer who can purchase the entire property. You may sell any number of tokens you wish.  

Benefits of Commercial Real Estate Tokenization

Here are some distinct advantages that real estate tokenization offers exclusively:  

Fractional Ownership: Splitting a single property into many tokens lowers the entry barrier. Instead of millions, investments begin from amounts as low as $50.

‍Quick Process: Token trades occur on a blockchain marketplace. Once regulatory and KYC steps are in place, the ownership transfer happens almost instantaneously. So, no more waiting for months of manual paperwork and approvals.

‍Larger Buyer Pool: Tokenization ensures that global investors can participate in 24/7 trade. With fewer geographic or institutional constraints, tokenization dramatically increases the number of potential buyers.

‍Transparency and Security: Ownership records are immutably stored on a public or permissioned ledger, reducing the risk of disputes and simplifying due diligence.

‍Democratizes CRE Investments: Historically, CRE investing has been restricted to large institutions, family offices, and high-net-worth individuals. Tokenization lowers the minimum investment to as low as $50, inviting a much larger audience. Effectively, retail investors can now partially own office buildings, retail centers, or industrial warehouses.

‍Improved Liquidity and Property Prices: Tokenized CRE assets can trade on digital exchanges, often with real-time order books, allowing investors to buy or sell instantly, not months. This liquidity, in turn, adds to the asset's value and leads to better prices, reducing the risks involved in private CRE markets.

In short, tokenization makes CRE more organized and accessible, much like stocks or bonds, where trading can occur daily and investments can be made worldwide.

How Landshare Solves Illiquidity in Real Estate?

Landshare is one of the fastest-growing tokenization platforms, specializing in U.S. properties. Their platform allows investors to purchase fractional tokens (as little as $50 per token) representing property ownership.

‍Key Landshare features:

‍Fractional Tokens: Each token gets you a proportional share of a property or a portfolio of properties.

‍Automated Rent Distribution: Smart contracts automatically allocate rental income to token holders each month.

‍Liquidity: Landshare tokens trade 24/7 on blockchain-based decentralized exchanges and select centralized venues, providing continuous liquidity.

‍Secure and Transparent: Every property undergoes professional due diligence, inspection, and legal compliance before Landshare adds it to its property portfolio.

‍4 Properties Sold: Landshare has sold four US properties on the BSC chain. This shows that it is a platform that believes in action and growth, and not hype like some crypto tokens. 

Benefits for Investors

‍Low Entry Point: For just $50, even beginners can try their hand at real estate Investing.

‍Predictable Cash Flow: Monthly rental yields (8-12% range annually) are streamed directly to wallets.

‍Transparent Ownership: All token balances, transaction history, and asset performance data are available on-chain, ensuring transparency and trust.

Conclusion

So, as 90% of the commercial real estate remains illiquid, there is a massive market for tokenization to capture. It offers a more transparent, accessible, and affordable solution to a problem that has existed for a long time.

Lastly, for people who have always wanted to invest in commercial real estate but did not have the capital, tokenization opens that door for you!    

Real estate investing is witnessing a change that claims to eliminate the problems associated with it. The change here is the digitization of assets, and leading this digital revolution is real estate tokenization. 

A recent Deloitte Center for Financial Services report shows that over $4 trillion of real estate is projected to be tokenized by 2035. The industry, which currently has a value of about $300 billion, is expected to grow at a CAGR of over 27%. 

For some context, the traditional global real estate market is expected to grow at a CAGR of about 2.69% from 2025 to 2029. Now, that’s a significant difference. So, what’s actually behind this growing demand for tokenized real estate? Mainly, ease of access. But wait, there’s more to it.

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So, let's examine why asset tokenization is the next big thing in the investment market and how it solves common real estate problems. 

What is Real Estate Tokenization?

Real estate tokenization simply means converting properties into blockchain‐based “tokens” that can be traded like shares. This approach of fractional real estate investments lets you enjoy the stable gains of properties with amounts as low as $50. 

This allows individuals to try their hand in an industry once dominated by wealthy institutions. Additionally, it promises to fix long‑standing challenges like high fees, slow deal closing, and limited liquidity. How does it do it? Well, crypto networks make ownership records immutable and can eliminate middlemen, so trades settle faster and more cheaply.

In short, a vast new market is emerging: investors can effectively “mine” fractions of properties instead of buying an entire building and earn rental yields and capital gains.

But what are the reasons for these bullish projections about real estate tokenization? Also, is real estate even relevant in 2025? 

Real estate has long been regarded as the foundation of generational wealth, offering a finite, tangible asset that provides security, legacy, and outsized profits. The main reason for this is scarcity. You cannot print or produce more land. So, the demand almost always exceeds the supply, resulting in value appreciation over time. 

Moreover, real estate is a tangible asset. It is something you can touch and feel. This gives humans a financial and psychological sense of security. Also, owning a house has been the primary way for families to pass on wealth to their loved ones. Real estate is essentially a part of family legacies all over the world.

So, real estate stands out among tokenized assets in terms of demand, historical growth, and stability. 

This is just the beginning. Now that the European Union has passed the MiCA framework, investors have received more clarity regarding regulations and legality. As more retail investors and institutions join this gold rush, it will become one of the most sought-after assets in the modern world.       

Why is Tokenized Real Estate Considered a Top Investment in 2025?

Here are some key reasons why RWA tokenization is being considered the best asset class in 2025:

Institutional Adoption 

Major banks and asset managers are experimenting with blockchain-based real estate. Countries like Germany, France, and Luxembourg are updating frameworks to accommodate security tokens. 

Meanwhile, in the US, BlackRock's (the BUIDL fund) tokenized treasuries have already attracted hundreds of millions in investments, showcasing that traditional finance players are bullish on the future of asset tokenization. 

Furthermore, several other large institutions, like JP Morgan and Goldman Sachs, are also tokenizing assets at a large scale. This caters to their global vision, as anyone from any part of the world can invest, massively increasing the investment funds.    

Anyone Can Invest From Anywhere

As mentioned earlier in this article, the main benefit of real estate tokenization is the access it brings. On platforms like Landshare, a minimum investment of $50 is required to access real estate tokens. 

Historically, only affluent or local buyers could own real estate, but blockchain is changing that. Anyone with an internet connection can buy a piece of property anywhere. 

Moreover, liquidity is really important for the retail investor. In these volatile times, an asset’s ability to generate cash at a fair value is one of its most critical reliability parameters. Tokenization passes this test and has almost instant liquidity, unheard of in the traditional real estate market.   

Tokens can trade 24/7 on global platforms and enable instantaneous settlement. In practice, smart contracts automate many tasks. For example, a token sale might immediately issue ownership tokens and even stream rental payments to investors, all without paper deeds or escrow agents.

Why Landshare Stands Out as a Top Real Estate Tokenization Platform?

Landshare is a U.S.-based platform that tokenizes properties. It lets investors buy real estate-backed tokens that start at only $50. Each LSRWA token is a tiny share of the fund. 

So, investors simply buy and hold to earn passive income from properties. 

Landshare and similar services solve many traditional inefficiencies. They cut out brokers and slow paperwork by storing ownership on-chain

Moreover, rental profits normally flowing to a few owners are now shared automatically and instantly among many token holders. This also opens investing to people globally.

Key things to know about Landshare:

Minimal entry point: Investors can buy LSRWA tokens with as little as $50, dramatically lowering the barrier to entry.

Fractional ownership and dividends: Each token grants a proportional share of rental income. For example, holding 10% of a property’s tokens gives you 10% of its monthly rent.

Automated, trustless payouts: Smart contracts on the blockchain handle all ownership records and rent payments. This means instant, accurate distributions to token holders without any middlemen or fees.

Current Assets: Landshare currently operates four tokenized U.S. properties. Each token represents fractional ownership, offering investors 8–12% annual yields from rental income and appreciation. 

4 Properties Sold: Landshare has already sold four properties on Binance Smart Chain. 

This proves that Landshare is all about value and action. It is a futuristic project that generates sustainable demand by providing real-world value. 

These features showcase why Landshare positions itself as “democratizing” real estate. By making ownership transparent, liquid, and programmable, platforms like Landshare aim to tap into the massive U.S. home equity market for everyone. 

Conclusion

This is just the beginning. As regulators clarify rules and platforms mature, tokenized real estate is set to become a mainstream asset class. Deloitte’s forecast of $4 trillion by 2035 implies a compound growth in the tens of percent annually. This trajectory is only plausible if institutional capital flows in. At that scale, property tokens could blend with traditional portfolios. Moreover, tokenization naturally enjoys the asset class’s inherent benefits. So, in the case of real estate tokenization, stability is a big attraction for risk-averse investors. Lastly, with billions of dollars predicted to enter this space, the shift to digitally‐native real estate assets seems not just possible, but inevitable.

In 2025, inflation continues to challenge the global economy. With rising consumer prices, devalued currencies, and economic uncertainty, investors are searching for dependable assets that protect purchasing power and deliver stable returns.

Traditionally, real estate has been a proven hedge against inflation — offering both price appreciation and passive income. But today, a new, more accessible alternative has emerged: tokenized real estate.

Thanks to platforms like Landshare, investors can now gain exposure to high-quality U.S.-based property assets through blockchain — combining the security of real estate with the power and flexibility of decentralized finance. The result is a next-generation inflation hedge that’s liquid, transparent, and built for yield.

Why Real Estate Works Against Inflation

Historically, real estate performs well during inflationary cycles. As the cost of goods rises, so do property values and rents. This leads to:

• Capital appreciation in physical assets
• Rising rental income that keeps up with inflation
• Consistent cash flow from tenant payments

However, traditional real estate has high entry barriers, low liquidity, and slow transaction processes. Landshare solves all of this with a blockchain-native approach.

Introducing LSRWA: A Tokenized Real Estate Solution for 2025

At the core of Landshare’s ecosystem is LSRWA, a token that represents a share of a pool of real-world, U.S.-based real estate assets. When you hold LSRWA, you're not just speculating — you're actually investing in physical properties that produce income and grow in value over time.

📈 Built-in Appreciation

The value of each LSRWA token grows proportionally with:

• Cash flow generated by rental income
• Underlying property appreciation

This means that simply holding the token over time allows investors to benefit from both rising property values and consistent income streams — two critical components of any inflation hedge.

Triple-Yield DeFi Opportunities with Landshare

What sets Landshare apart isn’t just its real estate exposure — it’s the powerful DeFi integrations that supercharge your returns.

💧 LSRWA-USDT Liquidity Pool (12% APR)

By providing liquidity in the LSRWA-USDT pool, investors can earn an additional 12% APR in staking rewards, on top of their property-backed gains. This creates a blended yield opportunity rarely seen in traditional finance or real estate.

🔁 Borrowing Against LP Tokens

Landshare is rolling out a new borrowing strategy that allows users to:

• Stake their LSRWA-USDT LP tokens
• Borrow $USDC against them
• Continue earning LP rewards and LSRWA appreciation

This innovative approach creates three income streams at once:

1. LSRWA token growth
2. LP staking rewards
3. Potential gains from utilizing borrowed USDC

It’s a fully optimized, capital-efficient strategy for high-yield real estate exposure — and a major advantage in inflationary conditions.

🎮 Boost Returns with the Landshare NFT Ecosystem

For those seeking an even more engaging experience, Landshare’s NFT Ecosystem adds a unique gamified layer to real estate investing.

LSRWA holders can participate in this NFT-based yield enhancement system, unlocking exclusive boosts and rewards. This ecosystem allows users to:

• Earn higher yields through NFT upgrades and bonuses
• Engage in strategy-driven gameplay that complements real investing
• Turn real estate into an interactive DeFi experience

Learn more about how it works here.

Real Estate Tokens vs. Traditional Inflation Hedges

Compared to conventional options like gold or T-bills, tokenized real estate offers a compelling advantage:

Landshare’s model brings together the stability of real estate, the liquidity of crypto, and the rewards of DeFi, making it one of the most attractive options for inflation-resistant investing in 2025.

Final Thoughts: A Smarter Hedge for a New Era

As inflation continues to challenge global financial systems, LSRWA tokens offer a modern, effective way to preserve and grow wealth.

With built-in exposure to real U.S. real estate, passive income through rental yields, and DeFi-powered strategies that unlock multiple layers of returns, Landshare stands at the forefront of the tokenized real estate revolution.

Whether you're looking to safeguard your capital, generate yield, or explore new frontiers in on-chain investing, LSRWA offers a powerful, inflation-hedged solution for 2025 and beyond.

Start earning from real estate — the DeFi way. Learn more at Landshare.io

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