including office buildings, apartment properties, malls, shopping centers, warehouses, distribution facilities, and research-and-development or research-laboratory properties. Buildings made up of a mix of office and industrial space are called “flex” properties. If 50% or more is office, the property is called “office/flex.” If less than 50% is office, it is called “industrial/flex.” Some flex properties include research-and-development or laboratory space.

Most investors also consider hotels to be commercial real estate, but some look at hotels as operating businesses, and lump them in with a subset of properties that include assisted-living facilities and casinos.

With the possible exception of raw land, all commercial properties, including the “niche” properties described below, have one trait in common: They are capable of producing income, either in the form of capital gains or rental income.

In recent years, an increasing number of investors have begun investing in so-called niche property types. These include specialty properties such as apartment complexes specifically for college or university students, age-restricted apartment complexes for older residents, self-storage facilities, and office buildings that cater to doctors and other medical-related tenants.

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