Updated about 8 years ago on . Most recent reply
THE BASICS SERIES: WHAT IS COMMERCIAL REAL ESTATE?
THE BASICS SERIES: WHAT IS COMMERCIAL REAL ESTATE, and WHAT ARE ASSET CLASSES?
Commercial Real Estate are income producing properties. There are various types, called asset classes.
1. Retail (aka Strip Centers)
2. Warehouse (aka Industrial)
3. Office
4. Hotels
5. Resorts & Casinos
6. RV & Mobilehome Parks
7. Churches (occationally)
8. Multi-family (5+ Units). Some consider multi-family its own animal. (I recently posted in Bigger Pockets about this as well to see where everyone else's head is at with this) Not quite residential, not quite commercial. We all know 5+ units results in commercial underwriting, but some see a grey area as far as what they need to know to manage their investment. I consider this strictly an asset class of commercial real estate. Does not have to be under the same roof. I have seen a complex of 180 duplexes underwritten as commercial.
9. Mixed-Use. A mix of any of the asset classes. I.E. Retail on bottom and multi-family on upper floors. Or Warehouse with office space, etc.