Are multifamily properties considered commercial?
Yes, multifamily properties are typically considered commercial real estate. In the context of real estate, "commercial" generally refers to properties used for business purposes, which includes multifamily residential buildings like apartment complexes, as they generate income for their owners through rent.
The classification of a property as commercial or residential depends on various factors, including the number of units, the nature of tenancy, and local zoning laws. In many cases, a property with a certain number of units (often five or more) is classified as commercial. This classification can affect financing options, tax implications, and regulations that apply to the property.