Updated July 21, 2026
Core-plus and opportunistic are the two riskier tiers of the standard four-part CRE risk spectrum — core, core-plus, value-add, opportunistic. Core-plus describes a stabilized asset with modest, lower-risk upside; opportunistic describes ground-up development, major repositioning, or distressed assets requiring the deepest capital and expertise to execute.
The spectrum runs on expected return and corresponding risk: core is the lowest-risk, lowest-return tier (fully stabilized, minimal execution risk); core-plus adds modest upside with limited execution risk; value-add requires real renovation or re-leasing work; opportunistic carries the highest risk and highest target return, typically development or deep distress.
Positioning an LA listing accurately on this spectrum matters for who it gets marketed to — a core-plus buyer pool underwrites very differently than an opportunistic one, and mis-positioning a listing (overselling stabilized inventory as "value-add upside") is a common way sellers narrow their real buyer pool instead of widening it.
From the Sterman LA Multifamily Glossary — defined the way a broker actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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