Commercial real estate is revenue-producing real estate that is used only for business purposes, which includes retail centers, office complexes, hotels and apartments. Financing including the acquisition, development and construction of these properties is usually achieved through commercial real estate loans: mortgage loans secured by liens on commercial, rather than residential, property.

Much like with residential loans, banks and independent lenders are actively involved in making loans on commercial real estate. Additionally, insurance companies, pension funds, private investors and other capital sources, including the U.S. Small Business Administration’s 504 Loan program, make loans for commercial real estate.

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