Why Generalists Win in Commercial Real Estate Investing
In commercial real estate, investors are often told to “pick a niche” and specialize. The thinking goes that focusing on one asset class—whether it’s multifamily, retail, industrial, or office—allows you to develop deep expertise, build a competitive edge, and maximize returns.
But what if that advice is wrong?
The reality is that generalists—those who invest across multiple asset classes and strategies—are often better positioned for long-term success. Generalists can adapt to shifting market conditions, find unique opportunities specialists overlook, and reduce their overall portfolio risk through diversification.
If you’re looking to build a sustainable and profitable commercial real estate investment career, here’s why you should consider being a generalist instead of a specialist.
1. Generalists Are More Agile and Can Pivot With the Market
The commercial real estate market is constantly changing. What was a goldmine yesterday might be a sinking ship tomorrow. Generalists don’t get stuck in one asset class—they move where the best opportunities are.
Take the last five years as an example:
If you were focused solely on office buildings, you’re now facing serious challenges due to remote work trends.
If you specialized in new construction, rising interest rates and construction costs may have stalled your pipeline.
But if you were a generalist, you could have pivoted—investing in industrial when e-commerce demand spiked, converting hotels into multifamily when travel declined, or capitalizing on high rental demand by acquiring apartments.
When the market starts shifting, generalists aren’t left scrambling. They are already looking ahead, ready to adapt and take advantage of the next big opportunity.
I bought an office tower in downtown Chattanooga with the intent of converting it into micro-office spaces for startups. But after analyzing nearby apartment rents, I realized micro-apartments would be a far more profitable use of the space.
That pivot led to an off-market offer at 2.5x my purchase price within 18 months—before we even broke ground on renovations. A specialist might have been locked into their original plan, but as a generalist, I could recognize and act on the better opportunity.
2. Generalists Reduce Risk Through Diversification
One of the biggest dangers in commercial real estate investing is overexposure to a single asset class. When investors specialize too narrowly, they expose themselves to the risk of market downturns, regulatory changes, or shifts in consumer behavior that can devastate their entire portfolio.
If your portfolio consists entirely of office buildings, for example, you might have been thriving in 2019—but by 2023, you’d be scrambling as remote work slashed demand. If all your investments are in retail, a downturn in consumer spending or the continued rise of e-commerce could leave you with widespread vacancies and declining rents.
Generalists, on the other hand, build portfolios that can withstand economic cycles because they aren’t tied to the fate of a single sector. They spread risk across multiple asset types, ensuring that when one class underperforms, others can help stabilize their returns.
High Risk, High Reward?
Specialists tend to operate with a high-risk, high-reward model. They go deep into one sector, and if the market aligns in their favor, they can generate great returns. But if the market shifts against them, they often have no fallback plan.
Generalists, however, take a risk-managed approach. By allocating investments across multiple sectors, they avoid putting all their eggs in one basket. This is the same strategy that large institutional investors and REITs use—because it works.
Think about it:
Blackstone, one of the largest real estate investment firms in the world, has assets spread across multifamily, industrial, hospitality, office, and retail. They don’t bet everything on one category.
Publicly traded REITs diversify across multiple property types to hedge against downturns in any single sector.
If institutional investors understand the importance of diversification, why shouldn’t individual investors take the same approach?
3. Generalists See Opportunities Specialists Overlook
Most investors analyze deals through a narrow lens—one shaped by their specific expertise. A self-storage investor sees a vacant warehouse and thinks, How can I convert this into storage units? A multifamily developer looks at the same space and wonders if it could be turned into loft apartments. A retail specialist might only consider it for a shopping center.
The problem with this approach? It limits creative thinking.
When specialists assess a property, they tend to focus on whether it fits their predefined investment model. If it doesn’t, they move on—often missing the bigger picture. But generalists take a different approach. They don’t ask, Does this fit my model? Instead, they ask, What’s the highest and best use for this property?
By looking at real estate with an open mind—rather than being confined to a single asset class—generalists spot opportunities that specialists overlook.
Why Generalists Excel at Finding Hidden Opportunities
They Don’t Force a Property to Fit a Single Model
Specialists often have rigid deal criteria—if a property doesn’t fit their formula, they walk away.
Generalists, on the other hand, consider multiple potential uses and assess which one offers the best return.
They Cross-Pollinate Ideas from Multiple Asset Classes
A generalist might apply a concept from industrial real estate to a retail property or take a successful multifamily strategy and apply it to hospitality.
Specialists often fail to see how different sectors of commercial real estate can overlap and complement each other.
They Recognize Emerging Trends That Specialists Ignore
A retail-focused investor might not be aware of the growing demand for small-bay industrial properties.
A generalist, however, can spot these shifts early and take advantage before the competition moves in.
They Maximize the Potential of Underutilized Properties
Many properties suffer from a lack of vision rather than a lack of potential. Generalists excel at identifying alternative uses that unlock hidden value.
4. Generalists Avoid Unnecessary Competition
Most commercial real estate investors are chasing the same deals—multifamily, value-add retail, or large institutional-quality industrial. The competition in these spaces is fierce, making it harder to find good deals at reasonable prices.
But as a generalist, you can position yourself in areas where competition is low and returns are high.
How to Do This:
Look where others aren’t – If everyone in your market is focused on a particular asset class, look at the secondary effects of that trend.
Multifamily Boom = Self-Storage Demand – If your market is experiencing a surge in multifamily development, that means more renters moving into the area—many of whom will need self-storage for extra belongings. Instead of competing for expensive apartment deals, you could acquire a well-located self-storage facility and benefit from the demand surge without the same level of competition.
Retail Growth = Last-Mile Industrial Demand – As retail expands in a market, there’s often increased demand for last-mile distribution centers and small-bay industrial properties that supply those retail locations.
Follow development patterns – Cities are constantly evolving, and land use patterns change with them. Paying attention to what’s being built and what’s being demolished can give you a huge edge as a generalist investor.
If small industrial properties are disappearing to make way for apartments, that means the remaining industrial properties will become more valuable over time due to scarcity.
If a major corridor is being rezoned for mixed-use development, retail, office, and residential components will likely follow.
If a city is investing in public transit expansion, properties near transit hubs will likely see an increase in demand.
Find your Blue Ocean – The Blue Ocean Strategy is all about avoiding head-to-head competition and instead finding areas of opportunity that others have overlooked. Instead of fighting for deals in an oversaturated market, carve out your own niche where competition is lower.
Example 1: Focusing on a Specific Neighborhood – This is exactly how I built my reputation in East Nashville. When I started investing there, most investors were still focused on core Nashville markets like The Gulch or downtown. By getting in early, I was able to acquire properties at much lower prices. Over time, my focus on East Nashville established me as the go-to investor and broker in the area. Now, instead of hunting for deals, deals come to me.
Example 2: Identifying a Gap in the Market – Another great example is The Wash, my micro food hall concept. Every investor looking at the deal before me was focused on the property’s existing use as a car wash. But by recognizing a gap in the local restaurant market, I was able to convert the space into a thriving new concept that had almost immediate demand.
Example 3: Investing in Overlooked Asset Classes – While everyone else is focused on large-scale multifamily or trophy retail assets, you might find high-yield opportunities in smaller flex industrial properties, mixed-use developments, or hospitality conversions.
Commercial real estate is filled with investors chasing the same deals, in the same markets, using the same strategies. That’s why prices get bid up and returns get squeezed. Stay flexible and think beyond conventional asset classes so you can uncover lucrative investment opportunities that specialists may never even consider.
5. Generalists Build Stronger Networks and Have More Deal Flow
One of the most overlooked advantages of being a generalist in commercial real estate is the ability to build a diverse, high-value network that spans multiple asset classes and investment strategies.
Specialists tend to interact primarily with other specialists in their niche—multifamily investors network with other multifamily investors, retail brokers focus on retail owners, and industrial developers mostly talk to industrial professionals. This insular approach can limit their deal flow and make them blind to opportunities outside their area of expertise.
Generalists, on the other hand, work across multiple sectors, meaning they naturally build broader, more dynamic networks that can introduce them to off-market deals, creative investment strategies, and industry trends before they become mainstream.
How to Build a High-Value Network as a Generalist
Attend Industry Events Across Multiple Sectors
Many investors only go to events related to their asset class (e.g., multifamily investors at NMHC, retail investors at ICSC). Instead, generalists should attend a variety of events, such as:
Urban Land Institute (ULI) Conferences – Covers all asset classes and development trends.
CCIM Networking Events – Connects commercial real estate investors, brokers, and financiers.
Local Real Estate Investment Groups (REIGs) – Great for finding off-market deals across different sectors.
Build Relationships With Brokers in Multiple Asset Classes
Most brokers specialize in one type of property (multifamily, retail, industrial, etc.), but generalists should build relationships across all major commercial real estate sectors.
If you’re only networking with multifamily brokers, you’ll only see multifamily deals. By expanding your broker relationships, you’ll start getting exposure to deals in retail, industrial, office, hospitality, and more.
Join Masterminds and Private Investor Groups
Masterminds like my CRE Accelerator bring together investors from different backgrounds to exchange insights and opportunities.
Many of the best deals aren’t found through traditional channels—they come from trusted relationships.
Surround Yourself With Industry Experts Who Complement Your Skill Set
You don’t need to be an expert in every asset class—you just need access to experts.
By building relationships with specialists in different fields, you can leverage their knowledge while still maintaining your generalist approach.
At the end of the day, your network is your deal pipeline. The broader and more diverse your connections, the more opportunities you’ll have. And that’s why generalists, not specialists, often have the biggest long-term advantage in commercial real estate.
In commercial real estate, investors are often told to “pick a niche” and specialize. The thinking goes that focusing on one asset class—whether it’s multifamily, retail, industrial, or office—allows you to develop deep expertise, build a competitive edge, and maximize returns.