Commercial real estate encompasses a broad range of property types beyond residential — office buildings, retail centers, industrial warehouses, hotels, self-storage facilities, and more. For investors new to commercial real estate, understanding the fundamental characteristics of each asset class is the foundation for making informed capital allocation decisions.
Office
Office buildings range from single-tenant corporate campuses to multi-tenant Class A downtown towers. The office sector has faced significant headwinds since 2020 as remote and hybrid work patterns have reduced demand. Vacancy rates in major markets remain elevated, creating both risk for existing owners and opportunity for value investors who can acquire at significant discounts to replacement cost.
Retail
Retail encompasses everything from grocery-anchored neighborhood centers to regional malls to freestanding net-lease properties. Net-lease retail — where the tenant pays most operating expenses directly — has proven remarkably resilient. Essential retailers like pharmacies, quick-service restaurants, dollar stores, and auto parts chains have maintained consistent operations and rent payment through economic cycles.
Industrial
Industrial real estate — warehouses, distribution centers, manufacturing facilities, and flex space — has been the strongest-performing commercial sector over the last decade. E-commerce growth has driven explosive demand for last-mile distribution facilities near population centers, pushing vacancy rates to historic lows and rents to record highs in most major markets.
Where RIYT Focuses in Commercial
Our commercial strategy prioritizes net-lease retail and industrial properties in secondary markets where yields remain attractive and competition from institutional capital is lower. We target essential-service tenants with strong credit, long lease terms, and contractual rent escalations that provide inflation protection.