What are the three asset classes generally recognized in real estate?

The three asset classes generally recognized in real estate are residential, commercial, and industrial. Residential real estate includes properties designed for people to live in, such as single-family homes and apartments. Commercial real estate encompasses a variety of property types used for business purposes, including office buildings, retail spaces, and warehouses. Industrial real estate refers to properties used for manufacturing, production, distribution, and storage of goods. Each of these asset classes serves different functions and has unique market dynamics, making them foundational components of the real estate sector.

The other options reflect various types of classifications, but they don’t align with the broad categories of asset types. Equity, debt, and hybrid refer more to investment structures, while retail, office, and hospitality are specific sectors within commercial real estate. Class A, Class B, and Class C denote property quality and types within classifications rather than distinct asset classes themselves.