Commercial Categories

Finance Topics for Islamic Commercial Categories

Islamic Commercial Finance Categories

Commercial Finance Topics


1 – 4 Units  (Residential Category)
Owner Occupied – up to 30 year with 3.5% down payment
Investment  – up to 30 years with 20 – 25% down payment
Minimum $100,000 – $4 Million
Construction Possible

5+ Units (Investment Category)
20 – 30% down payment
Minimum $300,000 – $40 Million
100 + Units as little as 10% down


Retail / Office / Industrial

Owner Occupied
Up to 26 years with 5% down payment, Max 7 year w/o Real Estate
Up to 12 months no payments during construction
Must Occupy at least 20% of space
$300K – $2.5 Million
Some Uses (ie Gas Stations – always minimum 15% down payment)

Up to 20 years with 20 – 30 % down payment
Up to 12 months no payments during construction
$300,000 – $40 Million


Understanding the different types of commercial properties is important. Getting the right kind of Islamic commercial guidance so whatever you buy is riba free is just as essential. There’s a few different possibilities for you to look at as far as these commercial properties go

Office Buildings

There are generally two different types of office buildings for you to choose from — suburban or urban. Like the name suggests, the urban variety found in city centers and usually include skyscrapers and high rise apartment type buildings.

Suburban offices are located in their namesake and are generally smaller than the urban counterparts.

Retail Outlets

These generally consist of the restaurants and stores that people frequent. Any commercial guidance that you get in this area should rest on Sharia compliant principles. You’ll need to make sure that the commercial guidance you get here is professional so that you can stay away from riba.

The reason is simple: the retail sector is complicated and can include everything from stores in a strip mall to big box stores that stand alone like a Walmart or Target.

Industrial Spaces

These generally include buildings outside of urban areas and are located in what’s called industrial parks. They can include warehouses and heavy manufacturing buildings. As an example, warehouses are generally used as distribution facilities and they fall in this category.

IjaraCDC is always available to help you with Islamic financing and ijara general mortgages for residential or commercial properties. Our system has been approved by American Muslim jurists for use in Canada and the United States. Because we like to stay on the cutting edge of innovation, we also offer a free Ijara 360 App. If you’re looking for expert commercial guidance for Islamic finance, you should get in touch with us today. We’d be happy to hear from you.