1/ Commercial real estate is a business, not just another asset class.
The best businesses have grade A customers, reoccurring predictable & contractually protected revenue, low fixed expense costs and the ability to obtain the cheapest financing with best terms.
On top of the profit, the underlying asset (land & building) also appreciates in value over time, beating inflation.
Last but not least, if you’ve picked correctly...
The asset will experince incredibly low drawdowns & amazing appreciation as demand constantly outstrips supply.
Some could even be recession proof.