July 16th, 2020
Are You Using the Right Real Estate Agent?
When you are ready to buy, sell, or lease commercial real estate, who do you turn to? Many people work with their residential agent or broker to help them with their home. Makes sense as real estate is real estate, right? Wrong! Commercial real estate is complicated. Commercial brokers are experienced in asking questions that not only will affect the sale initially, but in the future as well. Questions such as; hook height, overhead door height, sidewall height, sumps, electrical power, access, utilities, easements, triple net leases vs. gross lease, rent-able square footage, CAM charges and so forth.
Commercial real estate agents have weathered many challenges in regards to closing a commercial deal. With that said, they are not experts when it comes to assisting with a residential sale. Their knowledge, the data they review & statistics focus on the commercial market & would be of little use in the residential real estate world.
Let’s look at specific topics that Commercial Real Estate agents specialize in.
Expertise & Experience
On average, the age of a commercial real estate broker is 60 and they have been in the business for over 15 years. They have spent countless hours learning the commercial real estate trade both by educational opportunities and from the school of hard knocks. This experience and education helps them navigate you through your real estate transaction. Asking a residential broker to help you with a commercial transaction is like asking a plumber to help you with your electrical problem. It might work but wouldn’t you prefer to have the person who works with that daily rather than someone who is figuring it out as they go?
Commercial Agents & Time Management
Residential and commercial real estate have very different methods when going about their customers’ purchase. Arguably, one purchase is made with the mindset of your business and the other purchase is made with the mindset of your day to day life. Both are equally important, but they are completely different perspectives. Commercial brokers can be used as a time management tool. They know what questions to ask & how to identify what is important to your business. They then research the market, give you prospective properties that fit your needs & discuss the short term and long term advantages or challenges to each property. Ensuring the most effective use of your time when looking for new options for your business.
Residential agents and brokers know who has buyers and/or sellers within a specific price range. They align themselves with these agents/brokers so they can efficiently work within that market segment. Commercial brokers like to deal with other commercial brokers, plain and simple. They will share sales and leasing information with other commercial agents that may not be open to the public. They also share information on properties they have listed that might fit another buyers’ or tenants’ needs or vice versa.
These are just a couple comparisons between what Commercial Real Estate agents specialize in. Reach out to your local commercial agent to ask any additional questions you may have.
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