When investing in commercial real estate, there are many different classes to consider. There isn’t “one right” investing class or “one right” strategy. The key is understanding that different markets will require different real estate investing techniques.
Multifamily: Five or more units in either urban or suburban settings. These include garden apartments, mid-rise apartments, and high-rise apartments.
Office: Dedicated to administrative work needed for businesses. Office buildings are sold by class, with Class A in great condition and the right location, Class B in good condition and a fair location, and Class C in “rehab needed” condition and a poorer location. Office classifications also include several types, such as traditional office space, flex-space, co-working space, and executive suites.
Industrial: Industrial properties vary according to need. Some of the most popular types of industrial properties include warehouse space, heavy manufacturing, and light industrial.
Retail: These are units used for selling wares. They can be in strip malls, shopping malls, or out parcels.
Hotels: Including short stay, long stay, and limited service.
Mixed-Use: A building that has a combination of uses, such as multifamily and retail or retail and office.
Special Purpose: This includes anything not included in the earlier categories, such as amusement parks, hospitals, theatres, and more.