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Does Commercial Real Estate have a new asset class?

The past few years have been unprecedented times of uncertainty, navigating unfamiliar territory and change. All of the contributing factors affect the state of commercial real estate. There have been several opportunities to create new asset classes from the demand for last-mile logistic centers to mini data centers to developing sites for dark kitchens. The new asset class in the works involves renewable energy and efforts to reduce carbon emissions.

The initiative to cut carbon emissions is driving the new sector for battery storage sites. According to Bisnow, “the battery storage sector is niche right now, but it has the potential to grow rapidly, with two complementary factors pushing in its favor. First, as countries push to hit decarbonization targets, renewable energy will become a larger part of global electricity grids, increasing the need for battery storage systems.

Second, institutional investors are implementing their own ESG and net-zero carbon targets, with investment in sectors that contribute to decarbonization set to increase. Battery storage fits that bill.”

For a very interesting read, view article  BISNOW ARTICLE – READ NOW

Also, here is a great article providing the basics of commercial real estate asset classes.   8 Types of Commercial Real Estate Buildings & Asset Classes

The main classes include:

  • Multifamily
  • Office
  • Industrial
  • Retail
  • Hotels & Hospitality
  • Land
  • Mixed Use
  • Special Purpose

Saunders Construction has performed seismic work for all classes with the exception of “land” for obvious reasons. If you need assistance with any type of real estate asset class, contact us

Posted Under: Commercial Real Estate