Types of Commercial Real Estate: The 5 You Need to Know [infographic]

5 Types of Commercial Real Estate Property

We all know that commercial real estate is an incredible investment.

But did you know there are actually 5 different types of commercial real estate?

Here are the different property types you should know before you start investing:

 
Types of Commercial Real Estate Infographic
 

1. Multifamily

Multifamily real estate provides housing units for multiple tenants.

There are several different types of multifamily properties, which can range from two units in a duplex to hundreds of units in a garden-style apartment complex.

Multifamily is a good first-step into commercial investing for those with residential experience since the tenant base is similar.

2. Office

Office buildings provide space for professional services companies to operate.

These investments, like multifamily, are often classified further as Class A, Class B, and Class C property based on their condition.

Office is one of the more capital-intensive investments in commercial real estate.

But, because of the sheer size and scale of the projects, they often have the highest valuations.

3. Industrial

Industrial real estate houses mostly manufacturing and distribution companies.

This type can range from a small flex space for your local electrician to massive regional distribution centers for e-commerce.

It’s certainly not sexy, but industrial can be one of the most stable investments in the commercial world.

4. Retail

Retail properties satisfy all of a consumer’s in-person shopping needs.

These properties will range from your local neighborhood market to indoor shopping malls with hundreds of retailers.

While it has suffered over the last economic cycle, certain sub-types of retail still prove to be strong investments.

5. Hospitality

Hospitality services the needs of both business and leisure travelers.

You can find hospitality in a motel at the interstate exit or the most luxurious of Ritz-Carlton’s in the world.

Tourism is a major driver of hospitality real estate, so this asset can see massive ups and downs with the economic environment.

Final Thoughts

 

So there you have it for the 5 types of commercial real estate.

Whether you’re looking to become an active or passive real estate investor, there’s a certainly an asset type for you.

Happy investing!

Share This Article:

 
Featured
Top 3 Recession-Resistant Commercial Real Estate Asset Classes
Top 3 Recession-Resistant Commercial Real Estate Asset Classes

Recessions expose the strengths and weaknesses of every investment portfolio—but in commercial real estate, some asset classes consistently rise above the volatility. While economic downturns often lead to higher vacancies, tighter lending conditions, and declining property values, not all sectors are equally vulnerable. In fact, a select group of asset classes tend to outperform, offering dependable cash flow and tenant stability even in uncertain times.

These recession-resistant properties share a few key traits: they serve essential needs, attract long-term tenants, and demonstrate historically low vacancy rates regardless of economic conditions. Whether you’re a seasoned investor rebalancing your portfolio or a new buyer looking for durable assets, understanding where to deploy capital in a recession is critical.

In this post, we’ll break down the top three commercial real estate sectors that offer resilience during downturns—industrial real estate, medical office buildings, and necessity-based retail. Each has its own strengths, challenges, and long-term outlook—but together, they represent a strong foundation for any investor looking to build a portfolio that can weather the next economic storm.

Let’s dive in.

Read More →
How to Prepare Your Commercial Property for a Recession or Market Downturn
How to Prepare Your Commercial Property for a Recession or Market Downturn

Economic cycles are a reality in commercial real estate. Whether you’ve been investing for years or just closed on your first property, one thing is certain: a downturn will eventually come. The question isn’t if, it’s when. And when it does, the investors who prepared in advance will be the ones who protect their cash flow, preserve tenant relationships, and come out stronger on the other side.

If the last few years taught us anything, it’s that adaptability is everything. Interest rate hikes, supply chain bottlenecks, inflation, and remote work have reshaped how commercial space is used—and challenged even the best operators. But in every market cycle, there’s opportunity for those who plan ahead.

In this article, we’ll explore how to recession-proof your commercial property—from tenant strategy and expense controls to financing and future repositioning. Whether you own flex space, retail, industrial, or office, these strategies are designed to help you weather economic uncertainty and stay in control.

Read More →
The Exit Strategy: When (and How) to Sell Your Flex Space Property
The Exit Strategy: When (and How) to Sell Your Flex Space Property

Every great investment starts with a plan—and that plan should always include an exit strategy. Whether you’re just entering the world of commercial real estate or you’ve built a strong portfolio of flex space properties, knowing when and how to sell is essential. The right exit can unlock new opportunities, reduce your tax burden, and help you maximize returns on your initial investment.

Flex space, in particular, has become a valuable asset in today’s commercial real estate market thanks to its adaptability and high tenant demand. But markets shift, tenant needs evolve, and your own goals will likely change over time. Maybe you want to 1031 exchange into a larger asset, cash out to diversify your holdings, or simply capitalize on current market highs. Whatever your reason, having a well-timed and well-executed exit strategy is the key to realizing the full potential of your investment.

In this article, we’ll break down the core components of a smart exit plan for flex space investors: identifying the right time to sell, preparing your property, choosing the best sale strategy, and building the right team to get the job done.

Read More →
How to Start Investing in Flex Space
How to Start Investing in Flex Space

Flex space has emerged as one of the most dynamic and lucrative opportunities in commercial real estate. With the rise of hybrid work models, e-commerce fulfillment centers, and businesses seeking adaptable leasing options, investors and property owners are increasingly turning to flex space as a viable asset class. Whether you’re an experienced investor looking to diversify your portfolio or a newcomer eager to break into commercial real estate, understanding the fundamentals of flex space is crucial for long-term success.

In this guide, we’ll walk through the essential steps to getting started in flex space investing—from understanding market demand and selecting the right property to financing, leasing strategies, and long-term management. With the right approach, flex space can offer high returns, consistent occupancy, and an opportunity to future-proof your real estate investments.

Read More →
What is the Future of Flex Space?
What is the Future of Flex Space?

In this article, we’ll explore what’s next for flex space investing, breaking down the key market drivers, emerging investment opportunities, and potential challenges that will shape the industry in the years ahead. Whether you’re considering your first flex space acquisition or looking to expand your CRE portfolio, understanding these future trends will help you stay ahead of the curve.

Read More →
How to Attract High-Value Clients in Commercial Real Estate
How to Attract High-Value Clients in Commercial Real Estate

If you’re a broker or investor looking to break into the $10M, $20M, or even $50M+ deals, you need to understand one thing: high-value clients don’t chase you; you attract them.

Read More →
Managing Flex Space Properties
Managing Flex Space Properties

As flex space continues to grow in popularity, effective management is becoming more important than ever for investors looking to maximize the potential of their properties. The diversity of flex space can create challenges, but it also offers a tremendous opportunity for investors to create a dynamic, profitable environment.

The role of a flex space property manager is far from traditional. It’s not just about keeping the lights on and ensuring buildings are well-maintained. It’s about creating an experience that enhances tenant satisfaction while optimizing operational efficiencies. Whether you're dealing with short-term tenants, long-term leases, or a mix of uses in a single property, effective management helps ensure a steady stream of income, maximizes tenant retention, and positions your property for future growth.

Read More →
Evaluating Flex Space Investment Opportunities
Evaluating Flex Space Investment Opportunities

Investing in flex space offers an exciting opportunity for those looking to capitalize on the evolving commercial real estate landscape. Unlike traditional office, retail, or industrial properties, flex space provides a unique blend of versatility, cost efficiency, and tenant appeal, making it a resilient and profitable asset class. However, not all flex space properties are created equal.

Read More →
Why Generalists Win in Commercial Real Estate Investing
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.

Read More →
Run The Numbers on Commercial Real Estate Investments in 5 Minutes (Or Less)
Run The Numbers on Commercial Real Estate Investments in 5 Minutes (Or Less)

Commercial real estate numbers can feel complex. Cap rates, net operating income (NOI), debt service coverage ratios—it’s a lot to digest. But the good news? You don’t need a finance degree to run the numbers like a pro.

Read More →
Tyler Cauble - Founder and President of The Cauble Group in Nashville, TN

About The Author:

Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors as a board member for the Real Estate Investors of Nashville. Learn more at www.TylerCauble.com