From the course: Introduction to Commercial Real Estate Analysis

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Asset classes: A, B, and C

Asset classes: A, B, and C

From the course: Introduction to Commercial Real Estate Analysis

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Asset classes: A, B, and C

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- [Instructor] Now commercial real estate applies a simple grading system to assets to rate their overall quality and specific characteristics. And typically commercial properties are classified as either A, B, or C. And that ranking is a fairly good gauge of the properties relative competitive position in their market compared to comparable properties in terms of their value, or rents, or expectations, about their amenities, maybe their age, and potential investment returns for an investor. This class system applies to all commercial asset types, you know, whether it be industrial, retail, multifamily, or hotels. And in this lecture we're going to explore the differences between the classes and highlight the investment opportunities and challenges for each class. So what sorts of tradeoffs are investors making when they choose to focus on one class versus another? Now there is one caveat to note, and it's that there really isn't a standardized or consistent definition of exactly what…

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