Real Estate Investment Strategies for Commercial Properties in the USA

Rising interest rates and increasing office vacancies make commercial real estate (CRE) investing more challenging across the United States. In 2024, the national office vacancy rate climbed to over 20%, the highest level in decades. For many investors, that uncertainty raises concerns about property values, lease renewals, and long-term returns. 

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We understand how overwhelming it can be to commit capital when the market appears unpredictable. However, even in challenging conditions, the right strategies can still help you remain steady and achieve growth. 

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With the real estate market projected to reach $155.60 trillion by 2029, investing wisely could make all the difference. How well do you know today's commercial real estate investment strategy?

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Trends Impacting CRE Investment in the US

Office vacancy rates have climbed due to significant shifts in how space is used and which sectors attract investors’ interest. One reason is the continued rise of e-commerce. With logistics and distribution accounting for 37.7% of significant leasing activity in the U.S. in 2023, capital and investors’ attention is drawn away from traditional office buildings.

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Another factor is sustainability, as many tenants now prefer:

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• Green-certified buildings
• Energy-efficient systems
• Properties that align with ESG priorities

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Outdated offices struggle to compete when newer developments meet these expectations. Interest rates also rose sharply, making refinancing and new investments more expensive. These combined pressures help explain why more office spaces are sitting empty while other property types continue to gain momentum.

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5 Popular Ways to Invest in Real Estate

1. Direct ownership: This is the most hands-on approach, wherein you buy and manage the property yourself. It can feel rewarding, but it also comes with responsibilities like maintenance, leasing, and tenant issues.
2. Real estate investment trusts (REITs): If you want real estate exposure without managing properties, REIT investment strategies allow you to invest in portfolios of properties through the stock market. It’s a passive option that gives you a piece of the action.
3. Private equity real estate funds: These funds pool money from multiple investors to acquire commercial properties, often with the goal of achieving more significant returns. You’ll need to commit more capital, but you won’t have to manage the details.
4. Joint ventures and partnerships: Collaborating with partners can mitigate risk and unlock opportunities for more substantial investments. Ensure you’re aligned on goals because shared control means shared decision-making.
5. Crowdfunding: With just a small amount, you can now invest in real estate deals online through crowdfunding platforms. It’s low-barrier and flexible, especially if you’re just getting started.

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Types of Commercial Real Estate Investment Strategies

Core Investments

Core investments focus on stable, fully leased properties in well-established locations. You're working with lower risk here, which makes this strategy a solid choice if you want predictability. These properties already produce steady income through long-term leases with reliable tenants and rarely require active management.

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It’s a slow-and-steady approach offering more peace of mind than dramatic gains. Some common examples include:

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• A fully occupied Class A office building in downtown Boston
• Distribution center leased long-term to a national retailer
• Medical office complex in a primary healthcare hub

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With 36% of Americans considering real estate as the best long-term investment, going with a Core Investment as one of the real estate investment strategies for commercial properties in the USA could be a smart move if you’re seeking a steady income with minimal stress.

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Core Plus Investments

Core plus offers more flexibility than core investments while focusing on quality properties. You’re investing in mostly stable assets that may require minor upgrades, new leases, or improved management to enhance performance. These small changes can lead to stronger returns without incurring too much risk, making it one of the best real estate investment strategies for commercial properties in the USA.

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Typical annual returns for core plus properties range from 8% to 10%, offering a step up from core while maintaining relative stability. Examples of core plus properties include:

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• A multifamily property with below-market rents and cosmetic upgrade potential
• Office building with expiring leases in a growing metro
• Retail center with a few vacant units and room to improve the tenant mix

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If you’re comfortable taking on more responsibility, this core plus real estate strategy strikes a balance between income and growth potential.

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Value-Add Investments

According to the INREV Investment Intentions Survey 2024, 56% of investors prefer value-add strategies, showing strong interest in assets with potentially higher returns through active management.

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Value-add investments focus on properties that require improvement through physical upgrades and operational enhancements. These assets often have higher vacancy rates or deferred maintenance, but they offer opportunities to boost value through renovations, re-leasing, and strategic management.

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Examples of value-added real estate include:

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• A mid-rise apartment building needing renovations and a refreshed marketing approach
• An aging office park with low tenant retention
• Suburban shopping center with outdated signage and vacant anchor spaces

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If you're comfortable taking calculated risks and ready to take a hands-on role, value-added investments guided by industry experts like Ben Reinberg can deliver meaningful long-term rewards.

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Opportunistic Investments

In 2023, foreclosure filings in the U.S. rose to 357,000 properties, highlighting a growing pool of distressed assets. While this is a concerning trend for property owners, it can present opportunities for investors willing to take risks and earn higher returns. 

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Opportunistic deals are among the boldest real estate investment strategies for commercial properties in the USA. They often involve ground-up developments, foreclosed properties, or major redevelopments. 

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While they require more time, capital, and expertise, they can offer substantial rewards for those willing to take on the higher risk. Some of the examples of opportunistic real estate are:

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• New apartment complex development in an emerging city
• Buying and rehabbing a foreclosed hotel in a tourism rebound market
• Converting an outdated mall into a mixed-use residential and retail hub

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This strategy is built for those who aim big. If you have the resources and patience, opportunistic investments can deliver the highest growth potential.

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How To Choose the Right CRE Strategy

Know Your Risk Tolerance and Return Goals

Ask yourself how much risk you’re willing to take and what kind of returns you want. Core strategies offer more stability, while opportunistic ones carry more risk but also offer greater potential rewards. Knowing this helps you to understand where to focus.

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Are you not sure where to start? Consider reading this blog, Key Questions To Ask Before Investing in Commercial Real Estate, to get clear insights before investing in CRE.

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Consider Your Time Horizon and Capital Commitment

Some real estate investment strategies for commercial properties in the USA require a long-term commitment and more significant upfront investments, especially those involving value-add or opportunistic strategies. Others, like REIT investment strategies or core real estate, can be more accessible and less demanding. Be honest about how much time and money you’re ready to commit.

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Watch Market Trends and Economic Conditions

Interest rates, inflation, and shifts in demand can all affect a strategy's performance. For example, rising office vacancies might make industrial or multifamily options more appealing. So, staying informed gives you a clearer edge.

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Decide Between Active and Passive Investing

Do you want to be involved daily, or would you rather let someone else handle the details? Active commercial real estate investment strategies require more effort but can yield higher returns. Passive approaches are less hands-on but offer steadier income.

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Connect With Professionals

It’s completely fine to seek guidance when things feel unclear. A trusted advisor can guide you through your options and help you select what best fits your goals. Sometimes a bit of expert input makes all the difference.

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Turn Strategy Into Action With the Right Partnership Today

Success in CRE isn’t just about choosing the right strategy—it’s about executing it with the right partner.

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I invest in recession-resilient assets, including medical office, industrial, retail, multifamily, and veterinary properties, that deliver consistent returns, tax advantages, and long-term value.

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With billions in assets under management and a 28% historical internal rate of return (IRR) across all asset classes, I’ve spent decades building wealth through precision, discipline, and access to opportunities others can’t reach.

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You don’t need more noise. You need a partner who’s done it before — and is still doing it.

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Let’s connect and build a strategy that supports your success today.