Which of the following is a characteristic of public equity in commercial real estate?

Investing in commercial real estate through public equity involves purchasing shares in companies that are publicly traded, such as Real Estate Investment Trusts (REITs). This method allows individual investors to gain exposure to real estate markets without the necessity of directly owning or managing properties. By buying shares of these companies, investors can participate indirectly in various real estate investments, taking advantage of the liquidity and potential for diversification that public equity markets offer.

The other options do not accurately characterize public equity. For example, investing "without a specific market" does not apply since public equity usually focuses on specific markets where these companies operate. Offering "passive income without risk" is misleading; while public equity can provide passive income through dividends, it still carries market risks related to stock price volatility. Lastly, requiring a "physical asset investment" contradicts the essence of public equity, as it involves investing in companies rather than directly in physical properties.