A commercial real estate loan is a type of financing specifically designed for purchasing, refinancing, or developing commercial properties. These properties can include office buildings, retail spaces, warehouses, and multifamily units. Unlike residential loans, which are typically based on personal income, commercial loans consider the income generated by the property itself. These loans usually have shorter terms, often ranging from 5 to 20 years, and may require a larger down payment compared to residential mortgages. Interest rates can vary based on the lender and the borrower's creditworthiness, making it essential for investors to shop around for the best terms.