Commercial Real Estate
From Open Risk Manual
Definition
The Commercial Real Estate asset class includes on-balance sheet loans for specific corporate purposes, namely the purchase and refinance of CRE, and on-balance sheet investments in CRE.
This definition implies that the property is used for commercial purposes, such as
- retail
- hotels
- office space
- industrial, or
- large multifamily rentals.
In all cases, the building owner or investor leases the property to tenants to conduct income-generating activities.