The gating of withdrawals from some U.S. open-end funds amid a commercial-property downturn raises risks in the private-equity real estate model, primarily due to asset valuation uncertainties. Diverging asset valuation timelines among managers complicate the appraisal process, impacting limited partners’ (LPs) access to capital. The U.S. market, particularly central business district (CBD) offices, faces significant downturns, with appraisal values not reflecting actual transaction prices, leading to skewed investment performance perceptions. To mitigate risks, LPs should utilize multiple performance measures for transparency and to challenge existing appraisal assumptions, thus enhancing predictability and trust in the sector.