Discuss the investment features that set each commercial property type apart

Property types carry different risks because of their tenants and leases. Offices depend on employment in office-using industries and often have long leases, so income is stable but a lease expiry can leave a large vacancy. Warehouses follow trade and online retail, usually on long net leases. Retail property depends on consumer spending; leases may include percentage rent, a share of tenant sales above a breakpoint, so income rises with store sales. Apartments have short leases that reset quickly, with demand tied to population and household formation. Hotels have no leases, income that changes nightly with the economy and heavy operating demands, making their income the most volatile. The trap is applying one cap rate or risk view to every type.