The term Mid-Core commercial real estate encompasses a significant portion of the commercial real estate market, primarily owned by sole proprietors, corporations, and limited liability companies. These assets represent about 80% of all commercial properties in the United States.

Classification of Mid-Core Commercial Real Estate

Mid-core commercial real estate is classified based on factors such as location, age, and building quality. The main categories include:

Core: High-quality properties in prime locations with stable, long-term tenants.
Core Plus: Similar to core properties but may require some improvements or have slightly higher capitalization rates due to increased risk.
Value-Add: Properties that need significant improvements to increase their value.
Opportunistic: High-risk properties that require substantial renovations or are in less desirable locations.

Characteristics of Mid-Core Commercial Real Estate

Mid-Core properties are typically well-located with stable cash flows, though they may need minor improvements or lease management to maximize returns. They strike a balance between moderate risk and moderate returns, appealing to investors seeking a blend of stability and growth potential.

To clarify the scope of Mid-Core real estate by product type:

• Residential: Includes properties with 2 to 50 units.
  • Yes: Duplex, 5-plex, 10-plex, 50 units.
  • No: 250 units.
• Commercial: Ranges from 2,000 to 25,000 square feet.
  • Yes: 2,000 SF retail strip, 10,000 SF warehouse, 20,000 SF office building, 5,000 SF single-user property.

Distinction from Large Investment-Grade Assets

In contrast, large investment-grade assets, typically owned by pension funds and insurance companies, are not considered mid-core assets. These properties usually have valuations starting at $15,000,000 and above.

Media Realty’s Expertise

Media Realty excels in Mid-Core investments, consistently demonstrating success through our unmatched transactional history. Our expertise lies in a profound understanding of the complexities of the commercial real estate market, including value metrics and the capital expenditures needed to reposition properties effectively. This knowledge enables Media Realty & Advisors to achieve outstanding net gains for our clients, whether they are buyers or sellers.

Check out the video introducing Peter Dacko/Media Realty & Advisors' Mid-Core Strategy. Click here.