Do you buy a large commercial property or 2-3 smaller ones?

[Michael X.]

Hypothetically speaking...

Say someone has enough down payment/credit score etc. to purchase a commercial property between 2-3 million dollars. Which scenario would be better: buy a single large property or 2-3 smaller ones? I would side with the larger one simply due to these management cost (would be professionally managed), more cash flow under one roof etc. But what I'm not sure of is to put a lot of eggs in one basket. By diversifying into several properties you can average out loses and maybe even undergo greater appreciation. What are your thoughts?

The properties that would fit his bill would be medical offices, multi-family and possibly a large hotel (not sure if this would be good though).

Insight is appreciated.