In every property market around the world there is an abundance of residential real estate. It’s not hard to understand how to sell residential property given that we all live in houses and know the local area in which we live.
On that foundation you have lots of real estate agents selling and renting residential property in all markets and locations. The same agents however are not always as skillful when it comes to commercial property sales and leasing. Here is why.
The commercial real estate agent has to have a sound knowledge and skill base in things such as these:
- Property performance and analysis
- Return on investment, capitalisation, summation, and comparable price analysis methods
- Rental types used in the current market for different commercial properties
- Lease types and terms used in different lease situations
- Marketing methods for investment property
- Income generation from properties of all types
- Expenditure controls and benchmarks from property
- Tenant mix strategies together with anchor tenant opportunities
- Lease documentation and strategies in different property types
- Vacancy analysis and minimisation as part of property performance
- Supply and demand for commercial property and space
- Tenant movement and placement
- Business sentiment in the local area
- Services and amenities required by tenants in the current market
- Comparable prices and rents with local properties sold or leased over the last 5 years
- Landlord investment requirements and strategies that can solve them
- Time on market for selling or leasing commercial property currently
To start a career in commercial property from a base of residential property experience, there is a reasonable amount of study required in the local market, and with the types of property that changes hands. The information is available from convenient sources such as the local existing property listings, existing agents in the region, internet, and property owners.
Importantly the reason a property owner will use a particular agent to market a commercial property for sale or for lease, centres on knowledge of the local market, market share, and experience in handling the property. If you as a real estate agent are considering changing or expanding from residential real estate property sales, then the opportunity awaits.
A career change to commercial property will take some time but the rewards are many. Choose to be the best in the market and build your skills towards that.