What is Commercial Real Estate (CRE)?
Commercial real estate is property used for business or income-producing purposes rather than as a personal residence — including office buildings, retail centers, warehouses, industrial space, hotels, and apartment buildings of five or more units. It is valued largely on the income it generates, and financing, leasing, and due diligence differ significantly from residential deals.
Example: An investor buys a multi-tenant retail strip center as commercial real estate, evaluating it on the rent it produces rather than on comparable home sales.