What is Commercial Real Estate (CRE)?

Definition

Commercial real estate is a large and complex segment of real estate. Broadly defined, CRE refers to actively managed commercial real estate on an institutional scale. The primary segments within the CRE landscape are:

• Multifamily
• Retail
• Office
• Industrial

Why it’s Important

Sometimes it's not obvious what is included in the label of CRE.

For example, the multifamily real estate (MFRE) segment is often thought to be a separate vertical, but it is actually included under commercial real estate. MFRE refers to residential, income producing properties that consist of five or more units. The primary property types within MFRE are:

• Condominiums
• Apartment buildings
• Apartment communities

In addition, while evaluating smart building technologies, it’s important to do so based on the specific needs and goals of the asset type.