In an industry full of specialists, generalists in commercial real estate are quietly outperforming expectations.
Specialization worked when the market moved slower.
But now? Economic and technological disruptions are shifting things quicker than ever.
Commercial property investment tips that made sense a few years ago don’t always hold up, so to stay competitive, you need more than deep knowledge of one niche — you need flexibility. That’s why more investors are finding success by thinking like generalists.
Being a generalist in commercial real estate doesn’t mean chasing trends or abandoning discipline. It means staying open to opportunity across asset classes and knowing when to change focus.
You don’t have to predict every turn in the market, but you do need to be ready for it.
Let’s break down why thinking like a generalist is one of the best CRE investing strategies in 2025.
The myth of specialization in CRE
You’ve probably heard the standard advice: Pick a lane — stick with multifamily, retail, industrial, or office — and master it.
CRE has long rewarded those who drill deep into a specific niche. But that mindset is starting to show its limits.
If your entire strategy depends on one asset class, you’re too exposed.
Just look at how quickly office properties became high-risk, or how fast retail tenants changed when consumer habits went digital. It’s clear that while specializing in a specific CRE niche can make you more efficient, it can also make you vulnerable.
Generalists don’t face the same constraints. They know how to step back, assess multiple sectors, and move their capital where it makes the most sense.
The Advantages of Being a Generalist in CRE
1. Cross-sector adaptability
Generalists aren’t locked into one playbook.
During the e-commerce surge, for instance, many of them shifted toward warehouse and last-mile distribution properties, and as housing needs changed, they explored adaptive reuse or added workforce housing to their portfolios.
2. Creative deal structuring
Because they have interests in different sectors, generalists tend to build stronger deal instincts.
Their experience with a wide range of financing structures allows them to align capital with a property’s unique characteristics and timeline.
For example, they know how to use bridge loans to stabilize transitional assets with long-term upside that need short-term repositioning.
They also know how to underwrite value-add deals by identifying potential upgrades — such as renovations or re-tenanting — that could boost rental income and attract stronger tenants.
A generalist’s strategy often shifts depending on financing terms, market conditions, and exit options.
They might pursue a short-term hold if the plan is to improve NOI and sell into a favorable market, or they might take a longer-term approach and aim for steady cash flow and appreciation over time.
Because they’ve seen how different sectors perform across cycles, generalists in commercial real estate can anticipate lender appetite and refinancing risks. That insight helps them act quickly and structure deals that work even when the market gets tight.
Risk management through diversification
One of the biggest risks in CRE is overexposure to a single asset class. Investors who narrow their focus too much are at higher risk of portfolio shocks when market swings and policy changes hit hard — and sometimes all at once.
Take investors who focused exclusively on office properties. They might have performed well in 2019, but just a year later, portfolios anchored in office assets started to lose ground as remote work reduced tenant demand and increased vacancy rates.
The same could be said for retail — a surge in e-commerce or a pullback in consumer spending can easily turn strong-performing centers into vacancy problems.
Generalists manage this risk by spreading it out. They balance their portfolios across sectors instead of tying their success to a single property type.
Aside from protecting against downturns, this also helps them maintain more consistent returns throughout different market cycle phases.
Institutional investors like Blackstone use this model for a reason. It has exposure across multifamily, industrial, hospitality, office, and retail.
Public REITs do the same to shield against underperformance in any one category. Diversification truly is one of the most reliable commercial property investment tips out there, and even individual investors can mirror the same principles institutional firms use to reduce risk and stabilize returns.
4. Greater networking and collaboration opportunities
Specialists tend to build their networks around their niche — multifamily investors mostly connect with other multifamily professionals, retail-focused brokers attend retail-specific events, etc.
In contrast, generalists in commercial real estate also get to interact with a wider range of brokers, lenders, developers, and municipal contacts. These relationships open the door to off-market deals and insights that don’t circulate in single-sector circles.
5. A holistic view of market trends
Generalists also tend to spot trends earlier.
Because they watch multiple sectors, they see how broader economic or demographic shifts ripple across real estate — and often before those signals even show up in one specific category.
Specialists, in contrast, tend to analyze properties through a fixed lens.
Check out our blog: How to Align Macro Trends, Enterprise Priorities, and CRE Strategy in the Context of Today’s CRE Market
A self-storage investor sees a vacant warehouse and thinks about conversion potential, a multifamily developer looks at the same space and envisions loft units, and a retail investor might ignore it entirely. Each interpretation is valid, but also limited.
Generalists don’t ask whether something fits a preset investment model — instead, they ask what the highest and best use might be. That mindset makes it easier to catch opportunities others overlook.
How to Cultivate a Generalist Mindset in CRE
Do you want to start thinking like a generalist? Stop chasing what everyone else is doing and start asking where the overlooked value might be.
Here are some generalist CRE investing strategies you can apply in 2025:
1. Look where others aren’t.
Every popular trend creates ripple effects. When one asset class heats up, related opportunities often emerge in areas with less competition and better margins.
For example, a multifamily construction boom might draw investor attention to new apartment developments. But as more units come online and renters move in, many of those renters need extra storage.
A generalist investor might quietly acquire a self-storage property nearby instead of bidding up apartment deals.
Is retail activity picking up?
Generalists know that this growth often signals rising demand for last-mile logistics, especially in dense areas where e-commerce fulfillment needs to move fast.
A well-located small-bay industrial site might become essential infrastructure — and it probably won’t draw the same crowd of bidders as a major retail plaza.
2. Track development patterns.
Generalists in commercial real estate are always looking for zoning changes, transit expansions, and shifts in land use to see where the next investment opportunities will surface.
For example, if older industrial buildings are being replaced by multifamily developments, the remaining industrial supply may grow more valuable due to scarcity.
If a commercial corridor is being rezoned for mixed-use, retail, office, and residential demand are likely to follow. When a city invests in public transit, properties near new stations usually see a bump in demand — and rents.
Generalists follow these patterns to stay ahead of the curve and position themselves for early entry into rising submarkets.
3. Find your blue ocean.
Sometimes, it’s best to ignore shiny new objects and instead find a lane no one else is paying attention to.
Focus on emerging submarkets that haven’t hit full stride. Getting in before prices run up can help you build a stronger position and attract inbound deal flow as demand grows.
Train yourself to spot gaps in the local market, too. When you come across an underused property, don’t fixate on its current function — ask instead what the neighborhood actually needs. Could that car wash become a micro food hall? Could that outdated retail strip support co-working or residential?
Case example
David Lichtenstein (founder and CEO of The Lightstone Group) built his CRE career by thinking beyond a single asset class.
He started in the late 1980s with multifamily investments, but one of his most successful moves came in 2003 when he acquired Prime Retail (a portfolio of 37 outlet malls) for $638 million.
At a time when many investors overlooked outlet retail as a fading category, Lichtenstein saw untapped value. He then repositioned and improved the assets to sell the portfolio to Simon Property Group for $2.3 billion in 2010.
That deal alone shows the upside of a generalist mindset: spotting opportunity in sectors others ignore and having the range to act on it.
Of course, not every move worked out. In 2007, Lichtenstein bought Extended Stay Hotels for $8.1 billion at the peak of the market — just before the recession hit — and had to file for bankruptcy just two years later as travel demand collapsed.
But even that experience underscores the value of diversification and risk awareness. It highlighted the importance of timing, debt exposure, and understanding sector-specific volatility.
Lichtenstein later returned to the hotel market with a more cautious strategy.
His career thus far shows both the potential and the limits of thinking broadly in commercial real estate and why adaptability matters just as much as ambition.
Conclusion
Asset classes shift. Capital flows change. Investor expectations in commercial real estate are always evolving. In this environment, sticking to one strategy can limit your options.
If you’re looking to expand your CRE perspective and become more of a generalist, now is the time. Start with market research outside your usual niche. Attend cross-sector events and ask what others aren’t asking. The more angles you can see, the more prepared you’ll be for what’s next.
And when you’re ready to finance your next opportunity, our team is here to help. Reach out to Private Capital Investors by calling 972-865-6206 to explore lending solutions designed to fit your investment strategy.
