Commercial real estate (CRE) is an asset class consisting of buildings or other pieces of land that are leased or used primarily for business purposes. This type of real estate typically involves retail, office space, industrial or multifamily residential properties. CRE can also involve hotels and other hospitality-related establishments. Investing in commercial real estate is often seen as a way to diversify one’s portfolio and generate higher returns than traditional stocks and bonds. CRE investors typically benefit from the long-term cash flow generated by leasing these properties, as well as the potential for capital appreciation over time.