Any real estate used primarily for multifamily residential purposes involving 5 or more dwelling units is considered:

The classification of real estate used primarily for multifamily residential purposes involving five or more dwelling units is considered commercial real estate. This is because properties of this size and nature are often operated for profit at a larger scale than typical single-family residential properties.

Commercial real estate generally includes properties that are intended for business purposes, which encompasses multifamily residences like apartment complexes, where the intent is not only to provide shelter but also to generate income through rentals. While the term 'residential' is present, the scale and operational design shift these properties into the commercial category, as they involve commercial transactions and investment strategies.

Smaller multifamily properties (typically 1 to 4 units) may be classified differently, often as residential real estate, but once the property consists of five or more units, it distinctly fits into the realm of commercial real estate due to its economic implications and the level of management typically required. This classification influences zoning, financing, and taxation due to the nature of the investment and its greater impact on the local economy.