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Loren Keim's new book - Sell Your Home in Any Market

Understanding the Different Classifications of Investment and Commercial Real Estate

It would be impossible to itemize every single type of real estate investment vehicle.  There are literally hundreds of real estate investments.  Some are passive, like REITs (Real Estate Investment Trusts) and TICs (Tenants in Common) projects, and some are very hands-on, like buying an existing business or developing a mixed use parcel of land.

However, when searching for the right real estate investment vehicle, you should have a broad understanding of the different classifications of the various major real estate investments.  Many experts and organizations have tried to categorize commercial and investment real estate into between five and twelve different broad categories.  This breakdown is from the book "The Fundamentals of Commercial Real Estate" by Loren Keim.  He divided commercial and investment real estate into ten broad categories.

1. Office Buildings / Office Space - including general Office Buildings, Medical Office Buildings, R&D Office Buildings, Institutional or Governmental Buildings, Executive Office Suite and Office Condos.

2. Retail Buildings / Retail Space - Free Standing, Pad Site (McDonalds), Big Box Retail (Home Depot), Small Box Retail (Gift Shop), Special Use (Automotive Garage, Greenhouse, etc),  Retail Condo, or Residential Conversion.

3. Shopping Centers - Malls or Open Air Shopping Centers

4. Industrial / Flexible Space - Flexible or Flex Space (often found in office parks), Distribution or Warehouse (Bulk Properties), Manufacturing Facilities, Research and Development, Self Storage / Mini Warehouse, Truck Terminal, Cold Storage / Refrigerated Space

5. Hospitality Property - Hotel / Motel (Economy / Limited Service, Full Service, Extended Stay Hotels, Resort / Convention Center, Bed and Breakfast / Country Inn), Casino, Luxury Spa, Timeshare Complex / Shared Ownership, Golf Course, Marina, Camp Ground / Recreational Cabins, Amusement Park / Water Park / Indoor Water Park, Special purpose (ski lodge, private beach, etc),  Mixed Use / Combined Use Property

6. Multifamily Property - Apartment buildings.

7. Farm and Ranch Property

8. Business Opportunity - Business sales that may or may not include the physical real estate.

9. Vacant Developable Land - Commercial or Residential.

10. Senior Housing / Long Term Care Facilities - Independent Living, Assisted Living, CCRC / Life Care, Dementia Care, Nursing Care / Nursing Homes