The Commercial Mortgage Collateral

The commercial mortgage creates a lien on a piece of commercial real estate. However, there is a group of commercial loans called "mezzanine" loans which uses the property's cash flow as the collateral, rather than the real estate. However, all other secured commercial mortgage transactions use the real estate as the collateral.

The most common types of commercial real estate are:

• Multi-family
• Mixed Use
• Office
• Retail
• Warehouse / Flex
• Light Industrial
• Industrial / Manufacturing
• Special Use (such as self storage, movie theatre, bowling alleys, car washes, etc.)

For commercial real estate, the property's income or income potential contributes to its perceived value by lenders.