What is Commercial Real Estate (CRE)?

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Briefly, commercial real estate (CRE) is any property owned to produce income. This includes:

• property owned by investors to rent or lease to businesses or residential tenants
• property owned or leased by a business (i.e. storefront, office) to conduct business
• property that is owned or occupied by nonprofit organizations
• property that is owned or occupied by religious organizations

Examples of CRE properties are:

• multifamily (residential apartment building)
• mixed-use (combination of residential and retail or office units)
• office
• retail
• industrial
• land

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What are some types of commercial property types?

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There are 6 main property types:

1. Multi-unit/family (apartment buildings)
2. Mixed Use (combination of retail or office space and residential apartments)
3. Office
4. Retail
5. Industrial
6. Land

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How does residential real estate differ from CRE?

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According to most definitions, residential real estate includes single family homes, condominiums, co-ops and typically, smaller (4 units or less) apartment buildings. These properties are usually owner occupied. At R4 Commercial we include 2-4 unit apartment buildings in the multi-family space because of the owner’s ability to lease units to produce income.

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Can I get a 20 or 30-year mortgage loan for a CRE property?

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A typical loan for a commercial property is a 5-year balloon. That said, there are programs that offer longer mortgage loan terms for multi-family properties and owner-occupied businesses. These programs require certain conditions to be met.

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How can I reach you?

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Call, email, or complete our inquiry form. We’d love to hear from you.

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