Commercial real estate brokers assist clients in purchasing, leasing, or selling non-residential property, like retail or office space. Real estate agents in the commercial sector have the same licenses as those working with residential property. However, commercial brokers and real estate agents need to be aware of zoning and tax laws, in addition to information about the market, property management, financial analysis, and much more.
It’s not to say that selling residential properties isn’t a piece of work. In reality, homes are used to serve one purpose only – living. On the contrary, real estate for commercial purposes can be used for a range of purposes, including healthcare, business to retail, warehouses, and even storage. Apartment complexes are also regarded as commercial property.
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In reality, all of these are considered to be a subset comprising commercial real estate, in which commercial real estate agents can be experts. For instance, when a dentist plans to relocate their practice to a different site, the dentist will work with a commercial broker specializing in dental and medical real estate. While residential and commercial agents and brokers start by obtaining identical licenses, their professional responsibilities are very different. For instance:
- Residential agents and brokers can help clients locate their dream homes.
- Brokers and agents for commercial use act as a liaison between several parties in commercial transactions; they are well-versed in demographics and geographic information and offer in-depth financial analysis to determine whether a particular property benefits their client’s bottom line.
- When looking for commercial properties,
There are certain characteristics brokers should be looking for following the requirements of their clients, for example:
- Parking for clients/patients/customers.
- Access to public transport.
- An area that has plenty of pedestrian traffic.
- Access to highways and waterways to facilitate shipping.
- Storage area for inventory.
- As the business expands, a second office space can be added.
- How do commercial real estate professionals function
- Real estate agents in commercial brokerage can deal with tenants, landlords, or both.
In landlords’ cases, a tenant may advertise the commercial space available by utilizing a listing broker who can contact tenants. They receive an amount (usually 3 percent) on the amount rented throughout the lease. When working with tenants, Brokers look for a space that will meet the tenant’s service or product needs. They also negotiate the lease to ensure that there are no hidden costs and other commitments to financial obligations that could harm the most beneficial interests of their clients.
Landlords and tenants, It’s normal for a broker to work with both types of clients. It’s usually fine if the client is looking to lease space that the brokerage also registers. Brokers need to strike a balance between the interests of both their clients and their companies’ bottom line. The terms of the contract must cover any potential conflicts.
Certain states allow brokers to act on a dual basis which means that the broker is an impartial third party in the transaction. But, this isn’t in the best interests of either the landlord/seller or the buyer/lessee since brokers are more important to negotiate, not for neutrality.
How can I be a broker in commercial real estate?
Here’s how you can begin your career as a commercial real estate broker:
- Get a real estate license.
- While the laws are different for each state, you’ll typically require a license as an agent in real estate first. People can enroll in real estate courses at the local real estate academy or college and be able to pass the exam.
Suppose agents want to specialize in industrial or commercial real estate. In that case, they could combine their license with a degree from a college in business or one related to the area in commercial real estate that they are most likely to work in, for example, healthcare. But, a college degree is optional for work as an agent in real estate. Experience to become an agent, a broker typically requires between one and 3 years of experience working as an agent for an agent of a commercial real estate brokerage or as the supervisor of an independent real estate agent.
Get the commercial broker’s license. The requirements for obtaining the license will vary depending on the state in which the broker becomes licensed; however, the typical broker’s license requires higher-level classes and ongoing training before taking an examination. Brokers can then start their own business or join an existing brokerage for a commercial or real estate agency. The process of professional and educational development isn’t just about obtaining a broker’s license. If you’d like to become successful as a broker, you’ll need to commit to continuing education to enhance your expertise and knowledge.
What is the average amount the commercial real estate agent earns?
As per the Bureau of Labor Statistics, the median wage of all real estate agents for 2019 was $59,720. The top 10% of the brokers made greater than $178,000. Although the BLS does not differentiate between residential and commercial real estate regarding the breakdown of its salaries, Commercial real estate agents are likely to earn more commissions based on the worth of properties that they assist purchase and selling.
Although the lease or sale of commercial properties could result in a higher commission for brokers, they usually take longer than residential sales. This is why some commercial real estate professionals decide to stay in the real estate industry for residential properties. If they focus exclusively on the commercial sector, they could work 40 or more hours a week to reach their professional and financial objectives.
How do you find brokers for CRE?
For buildings that are constantly let to tenants, searching for a Commercial real estate sales expert could be as easy as calling the office front desk or checking the signage at the property entrance. Construction sites typically have signs that list the name and contact details of the CRE broker involved in the transaction.
If you still need to find the property you’d like to lease or purchase as a business proprietor, you may search your local area for CRE agents. Start with an agent from your area’s Chamber of Commerce, or you can search for properties by location or property type through an online directory like the one found at the best nationwide or local MLS.
