Asset classes: A, B, and C

- [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 class A, B, or C is.…

Different investors have in different markets…