Commercial real estate agents belong to a subset of the industry that focuses on the sales, leasing, and management of nonresidential properties and commercial assets. These include offices and retail spaces, as well as farmland, industrial sites, and medical facilities, among others.
How do commercial real estate agents work?
Much like their counterparts in residential real estate, commercial real estate agents typically work with landlords, real estate investors, and tenants.
When working with landlords or property owners, commercial real estate agents are tasked with finding qualified tenants or buyers. They are also expected to ensure that their client’s interests are well-protected throughout the entire process.
Similarly, a commercial real estate agent who works with a tenant or buyer is duty-bound to ensure that their client gets the best possible deal on the space they are interested in and that they will not be burdened with hidden financial responsibilities.
Commercial real estate agents can choose to work with both the landlord and the tenant at the same time. In situations like this, the agents act as the intermediary as both parties work towards a mutually beneficial outcome.
How do commercial real estate agents get paid?
Commercial real estate agents, regardless if they represent a landlord, a property owner, a tenant, or a buyer, are typically paid in commissions.
The total amount that a commercial real estate agent receives on a commission is calculated as a percentage. In most cases, this is anywhere between 4% to 8% of the property’s total sale price or lease value. If there are multiple agents involved in the transaction, that amount will be divided among the number of agents.
How and where can I find a commercial real estate agent?
Whether you’re a landlord, an investor, or a tenant, one way to find a commercial real estate agent is to ask others in the community—such as fellow commercial tenants or property owners—for leads.
Another far easier option is to approach real estate firms in your area like RE/MAX Direct to check if they also deal in commercial real estate or if they can refer you to anyone in their network.
What should I look for in a commercial real estate agent?
As you would with a residential real estate agent, exercise due diligence when looking for a commercial real estate agent. This is especially since their transactions are likely to involve large amounts of money.
That said, here are some things that you should look for in case you want to hire a commercial real estate agent:
- A commercial real estate agent must have extensive experience in commercial transactions
- Good marketing skills are a must
- Commercial real estate agents must have good communication and listening skills
When it comes to commercial real estate agents, you must always consider an agent’s experience and expertise. This is because commercial real estate has very specialized niches, with each one requiring specific sets of necessary skills—some of which can only be learned and mastered after years in the business.
In addition, because clients often rely on them for sound advice, commercial real estate agents are also expected to be familiar with their area’s real estate market. This includes being constantly updated on current commercial real estate trends and movements.
If you’re an owner of a commercial property, your income depends on whether your listing is on your target market’s radar.
Because of this, landlords and property owners will want to hire someone who is proactive and involved at marketing their property, not only in traditional outlets but also in social media. The latter is especially important as they allow clients to access a much wider market compared to traditional methods.
As with any other business partnership, it is important that your agent possesses good communication and active listening skills. This will ensure that the two of you will be on the same page during the entire process.
Having a good communicator on your team also assures you that any negotiations you enter will go smoothly. They will be able to discuss important terms with the other parties in a clear and effective manner.
Getting a good commercial real estate agent can spell the difference between a successful business venture and a failed one.
Whether you’re an investor who wants to market your property or a business owner who wants a new space to run your enterprise in, RE/MAX Direct is here to help you with all your commercial real estate needs.