Investing in Commercial Real Estate Is No Longer Just for Big Investors
Last Updated on 28 October 2025 by Equipo Urbanitae
For years, talking about investing in commercial real estate—offices, retail, hotels, student residences—meant talking about the big leagues. Tickets worth several million. Structured deals between international funds, insurance companies, and high-net-worth individuals. A world that the average investor couldn’t really access.
That world is changing.
In Spain and across Europe, we are seeing a very clear trend: capital is no longer focused solely on traditional housing. Sectors like retail (well-located commercial units, retail parks, repositioned shopping centers), hospitality, or “managed living”—student residences, flex living, professionally managed rentals—are back at the center of investor appetite. At the same time, institutional investors are willing to pay a premium for assets that offer stable occupancy, predictable income, and professional management.
And, for the first time, these types of assets are becoming accessible to everyday investors.
CRE: What Is ‘Commercial Real Estate’?
When we talk about CRE (Commercial Real Estate), we’re not just talking about offices. We mean any real estate asset where the value lies not only in “the brick” but also in “the business that the brick generates.”
This includes:
- Retail (prime-located shops, retail parks)
- Hotels and tourist accommodations with operators
- Student residences and other forms of “managed living”
- Professionally managed rental housing
- Alternative assets with operators (assisted living, healthcare, etc.)
In other words, assets that either generate recurring income (rent or operations) or are developed with the goal of being sold turnkey to an institutional buyer seeking precisely that stable income.
This is different from traditional residential. In a typical housing development, the cycle is: buy land → build → sell apartments to end buyers. In CRE, it usually goes: buy or develop the asset → stabilize it (with operator, tenant, contract) → sell it to a buyer seeking long-term recurring income. The investor profits in the value-creation phase.
Why Is Commercial Real Estate So Attractive Now?
For three very clear reasons:
1. Structural Demand
In some niches, demand far exceeds supply. The best example is student accommodation. Madrid and Barcelona, as well as university cities like Valencia, Seville, or Bilbao, face enormous pressure: more students, greater mobility, less affordable housing near campuses. This drives occupancy of modern residences close to 100%, making a well-located asset almost guaranteed to find a buyer among institutional investors.
2. Income Stability
In CRE, value no longer depends solely on “how much a square meter costs” but on “how much cash it generates each year.” For insurers, REITs, and family offices, an asset with a reliable operator, clear contracts, and multi-year income visibility is gold. That’s why we’re seeing such appetite for prime retail (well-located shops and retail parks), selective hospitality, and managed living: these are assets that produce relatively predictable income.
3. Professionalization and Clear Exit Strategy
Many commercial projects come with a business plan defined from the outset: structure the operation, secure the license, close financing, develop the asset, consolidate an operator, and sell turnkey to an institutional buyer. In other words, there’s a clear exit path from day one. This reduces uncertainty and limits risk.
For retail investors, this is important because it allows them to capture value in a phase historically reserved for the big players: before an international fund buys the stabilized asset.
A Practical Example: Residencia Marte
A recent example at Urbanitae is Residencia Marte, a student accommodation project in Móstoles (Madrid), across from the Rey Juan Carlos University campus.
The operation involves developing an asset with over 300 beds, including all modern residence services: study areas, dining, leisure, gym, pool, and included services. The asset is designed to operate with a specialized manager and, once built and stabilized, sold turnkey to an institutional buyer.
Why Does This Asset Fit into What We Call CRE?
- Real and visible demand. In southwest Madrid, tens of thousands of students live nearby, with a growing proportion—over 30% in some faculties—coming from other regions. The traditional alternative—shared apartments far from campus—is increasingly expensive and less convenient. This generates very high, sustained, and relatively predictable demand.
- Professionalized product. This is not just “renting rooms”; it’s providing accommodation with full services and a controlled environment. For parents and students, it offers security and predictability. For the final institutional buyer, it provides stable cash flows.
- Institutional exit from the start. The project’s thesis is clear: develop, launch with an operator, and sell to a fund specialized in student housing. That fund doesn’t want to take on urban planning or construction risk; it wants a turnkey asset to operate for decades. This is where the Urbanitae investor captures the added value.
- Alignment of interests. These structures incorporate preferred returns for Urbanitae investors: before the developer receives their success fee, the investor has a minimum IRR target. In other words, the manager only earns if the investor profits first. This is exactly the kind of alignment we look for in CRE.
Although formally it’s “student housing,” for us this is commercial real estate: an asset valued for its ability to generate sustainable income under an operator.
What Does Urbanitae Bring to the Table?
Until now, individual investors could diversify within residential: value-add projects, debt, coastal properties, prime housing, social housing… That was already powerful. The next step is to diversify by type of real estate asset, not just by location or risk.
In other words: not just housing. Also student residences, operator-managed tourist accommodations, well-located retail, and professionally managed rental properties. These are segments historically dominated by institutional investors.
Our strategy is based on three pillars:
- Access: Allow entry into operations that previously required millions of euros, with much smaller ticket sizes.
- Professional Rigor: Each project comes with a clear thesis (what is being purchased, what value is created, who the operator is, expected exit strategy). The investor doesn’t have to “manage a property”; they participate in a structure that starts with a roadmap.
- A More Resilient Portfolio: When a retail investor can hold, on the same platform, coastal housing, urban land debt, repositioned retail units, and a student residence near a university campus, they are no longer dependent on a single cycle.
That is the leap.
