# @derekvickers885 on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/DbeIdVEjx5k
- **Gondola URL:** https://gondola.cc/posts/68679256-derekvickers885-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/8eb1ff7316.jpg
- **Posted:** 2026-07-31T20:33:41.000+00:00
- **Account Owner:** Derek Vickers (@derekvickers885) — https://gondola.cc/derekvickers885

## Caption

Not All Commercial Real Estate Carries the Same Risk

When investors compare commercial real estate, they often focus on one thing.

Potential returns.

I think there's a better place to start.

Risk.

Every asset class performs well when the economy is strong.

The real test is how it performs when conditions become difficult.

Here's how I'd generally rank major commercial real estate asset classes from lowest to highest risk:

Mobile Home Parks
Self Storage
Industrial
Multifamily
Neighborhood Retail
Hotels
Office

This isn't a ranking of which assets can produce the highest returns.

It's a ranking of which businesses I believe are more resilient over multiple market cycles.

The lower-risk assets tend to share a few characteristics:

• Durable demand

• Essential services people need regardless of the economy

• Predictable cash flow

• Multiple ways to create value through operations

The higher-risk assets often depend on factors that are harder to control:

• Consumer spending

• Business expansion

• Travel demand

• High operating leverage

• Expensive capital improvements

That doesn't mean hotels or office buildings are bad investments.

A great operator can still generate exceptional returns.

But investing is about probabilities, not possibilities.

I'd rather own assets that don't require perfect market conditions to succeed.

That's one of the reasons I continue to believe mobile home parks deserve a place in a long-term portfolio.

They're not just real estate.

They're businesses that provide an essential need while offering operators multiple ways to improve performance over time.

The best investors don't build portfolios for the next 12 months.

They build portfolios that can withstand the next 20 years.

How would you rank these asset classes differently?

I'd be interested to hear your perspective.

#RealEstate #CommercialRealEstate #MobileHomeParks #PrivateEquity #RealEstateInvesting #CashFlow #CommercialProperty #Investing #WealthBuilding #CapitalPreservation

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## Tags

capitalpreservation, cashflow, privateequity, wealthbuilding, realestate, commercialrealestate, commercialproperty, investing, realestateinvesting, mobilehomeparks

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