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, the landscape of property investment in the U.S. is being reshaped—not just by shifting market trends, but by a powerful technological revolution: tokenized real estate.

While Real Estate Investment Trusts (REITs) have long served as a gateway for fractional property ownership, a new wave of blockchain property investment platforms is offering something REITs never could—global access, 24/7 liquidity, and full transparency. This is the age of tokenisation, and platforms like Landshare are leading the way.

💡 What Are REITs and Why Have They Been Popular?

REITs have traditionally allowed investors to gain exposure to real estate without directly owning physical property. They're regulated investment vehicles that pool money to purchase or manage income-producing real estate.

Benefits of REITs:

• Steady dividend income
• Exposure to property markets without physical management
• Liquidity (especially with public REITs)

However, REITs come with limitations:

• Lack of transparency
• High management fees
• Restricted market hours
• Limited global access

🔄 REIT vs Tokenisation: Why 2025 Is a Turning Point

Enter tokenized real estate—a model that leverages blockchain technology to digitally represent ownership in real-world properties through tokens. Unlike REITs, where investors buy into a fund, tokenization allows direct, transparent, and programmable ownership in individual assets.

Key Advantages Over REITs:

✅ 24/7 Liquidity – Trade property tokens any time on decentralized exchanges

✅ Fractional Ownership – Invest with as little as $1

✅ Smart Contract Automation – Dividends, ownership transfers, and reporting managed on-chain

✅ Global Participation – Anyone with an internet connection can invest in U.S. real estate

🌍 Globalizing U.S. Property Investment

One of the most significant advantages of tokenized real estate in 2025 is the global democratization of U.S. real estate markets. With regulatory frameworks maturing and platforms like Landshare providing fully-compliant solutions, international investors are able to access U.S. property markets without intermediaries.

This opens the door for:

• Global investors in emerging markets
• Digital nomads and crypto holders
• Institutions seeking stable, asset-backed returns

💼  Landshare: A Leader in Tokenized Real Estate

At the forefront of this transformation is Landshare—a blockchain platform that offers tokenized access to real, income-producing U.S. properties. Unlike traditional REITs, Landshare enables users to stake, trade, and earn passive income through its ecosystem.

What makes Landshare stand out?

• Fully tokenized rental properties
• Integrated staking platform
• Real-time asset transparency
• DeFi integration for additional yield opportunities

Landshare empowers users to move beyond REITs and into a more flexible, modern, and profitable model of real estate investing.

📈 Future Outlook: The Rise of Blockchain Property Investment

As the real estate industry embraces blockchain technology, tokenized real estate is poised to become a cornerstone of any forward-thinking investment portfolio.

With the benefits of liquidity, transparency, and accessibility, it's clear that tokenized property investment is not just an alternative to REITs—but an upgrade.

By 2025, as more investors demand control, speed, and lower costs, tokenisation will become the standard—not the exception.

🏁 Conclusion

The shift from traditional REITs to tokenized real estate marks a pivotal moment in property investment. Platforms like Landshare are making it possible to invest in U.S. real estate smarter, faster, and globally.

Whether you're a seasoned investor or just entering the Web3 space, it's time to ask:

Why settle for outdated REITs when tokenization offers so much more?