In this section, the theoretical framework and the conceptual model used for this research study are presented. While CRE and related terms are widely used in academic debate and economic practice, the understanding of the underlying concepts and related terminology seems to lack uniformity. To address such imprecision and to provide the reader with consistent theoretical classifications that apply to the following chapters, key concepts and technical terms must be defined. Apart from the basic understanding of CRE and its demarcation from residential real estate (RRE), these concepts and terms include CRE lending and the CRE debt fund universe; loan performance and loss minimisation; and lender-level and loan-level risk management.