Mid-Cap Assets: An Under-Examined Segment in CRE

While institutional investors often prioritize large-scale acquisitions, and high-net-worth individuals tend to focus on smaller assets, mid-cap properties occupy a space that is frequently overlooked by both types of investors.

(Note: This article references a special report commissioned by Profimex from Linneman & Co. Explore the original report at profimex.com/en/mid-cap-commercial-real-estate-report)

Drawing on market data and transaction analysis, this article will detail some of the structural factors that limit competition in this segment, as well as the characteristics, opportunities, risks, and potential benefits it may offer in terms of diversification, yield, and operational improvement.[2] The findings suggest that mid-cap assets may provide a distinct balance of opportunity and risk within a diversified investment strategy.

Why do institutional and private investors often overlook the mid-cap market?

The answer lies in the market structure: fragmented ownership, inefficient deal sourcing, and high friction during the closing stages make this segment less accessible. However, these very challenges create unique opportunities. Agile, mid-cap-focused funds that can navigate