WHAT IS COMMERCIAL
REAL ESTATE LENDING?
Commercial real estate lending is a type of commercial lending designed for non-residential real estate that is intended to produce revenue. For example a mall, a nail salon, a hotel, a hospital, a warehouse, an apartment complex, a storage facility and an office building are all considered commercial real estate. The technical difference between a residential space and commercial space is that a residential space can have a maximum of 4 residential units. Anything with more than 4 residential units is considered a commercial property. A real estate investment loan can be used solely for the latter – for investing in residential property, but not for commercial property.