Thinking of investing in Commercial Real Estate?  Commercial Real Estate used to be considered an alternative asset, but not anymore.  Now CRE is the third largest asset class to invest in, after stocks and bonds.

This is due to:

  • Professional investors, who have allocated CRE heavily in portfolios, and
  • Commercial Real Estate often outperforming all other asset classes.

Each real estate property type is divided into asset classes, which are separated into sub-categories, and then they are graded by quality classifications.

We previously discussed the “4 Major Asset Classes”:  Office, Industrial, Retail and Multifamily.  The other Key Asset Classes are:

  • Healthcare – This asset class includes:
    1. Medical Centers
    2. Hospitals, and
    3. Emergency Care facilities
  • Leisure – This asset class includes:
    1. Hotels
    2. Restaurants
    3. Self-Storage, and
    4. Special Purpose and other nonresidential properties such as: Cafes, Sports Facilities, etc…
  • Land – This asset class includes:
    1. Investment properties of Emergent, Raw and Rural Land ready for future development, or
    2. Infill Land with an Urban Area, Pad Sites, and more
  • Medical Office – This asset class includes:
    1. Doctors’ Offices
    2. Dentists, and
    3. Labs
  • Senior Housing – This asset class includes:
    1. Independent Living
    2. Assisted Living
    3. Nursing Homes, and
    4. Memory Care
  • Student HousingAsset offers: On Campus or Off Campus (multi-family type structures)

Learn more about the Key Asset classes and their Classifications in our next installment of the Beginner’s Guide to Commercial Real Estate (CRE) – Part 4.

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