While some properties are clearly considered Commercial Real Estate, other areas can appear gray. In order to clarify what falls in the commercial camp, here is a quick list:

1. Warehouses

2. Medical Buildings

3. Shopping Centers

4. General Office Buildings

5. General Office Plazas

6. Apartments - more than 4 units

7. Multi Unit Housing - more than 4 units  

Bankapedia's Take

One of the more commonly confused areas of the Residential vs. Commercial debate is over apartment complexes and multi-unit housing. The simple rule is that if you are financing more than 4 units simultaneously, it is considered a commercial mortgage. While ultimately, like many things in mortgage financing, it is up to the bank to decide whether something qualifies as commercial or residential, this is the general rule.

For example, if you are purchasing in excess of 4 apartments, whether connected or on the same parcel of land, it will most likely fall under a lender’s commercial guidelines. However, if someone then subsequently purchases just one of those units from you, their financing will be considered residential.