What is a Commercial Real Estate Agent?

Published by julia | Filed under Buyer / Seller Tips, Listings, Miscellaneous, Real Estate

A commercial real estate agent does not specialize in residential properties or land, though they have the training to sell these types of properties. Instead, they focus more on the business side of real estate with commercial properties and land zoned for commercial use. Many real estate agencies will have residential real estate agents working within the company as well as commercial real estate agents.

Taking the path of the commercial real estate agent can be a bit more taxing than residential real estate. The commercial business needs to be located in an area that will support that business. That means if there are five coffee shops within a 10 miles radius, trying to sell a commercial piece of real estate to a coffee shop owner in this area could prove a negative choice for the buyer’s business.

The major difference between commercial real estate and residential real estate is risk. The home buyer assumes some risk when purchasing a home in a given area. That risk may include the chance of the home values decreasing or the zoned school district not being the best in the county. These are all assumed risks that can be lived with. The commercial real estate risks, however, can lead to a failure in the business and a loss of income which are more tangible than the residential assumed risks.

Emotions are also lost in the commercial real estate business. The buyer for a piece of commercial real estate, most of the time, will not have their heart set on a given spot. On the contrary, they will come to the commercial real estate agent with a business plan and an idea of where the business should be located. All factors relating to the business will need to be taken into consideration including the location, the clientele, the traffic surrounding the location and the residential or business growth in the area.

Commercial real estate agents can make a lot of money on a commercial sale, but the risks and stresses are often higher. The time it takes to settle a real estate deal, working with multiple partners and approval of funds can all lend to the stressful environment. It takes a real estate agent with nerves of steel and the patience of Mother Teresa to handle the ins and outs of commercial real estate deals on a daily basis.