Commercial real estate is very different from residential real estate and requires distinct knowledge about the commercial market. Very few organizations can grow without acquiring land or additional space and the commercial real estate industry. That touches virtually every aspect of business in the country. In this post, you will learn what a commercial real estate agent can do for you as a property owner.
Plus what you can expect from commercial realtors as a landlord, tenant, buyer, or seller.
What is a Commercial Real Estate Agent?
A commercial real estate agent is an industry professional whose job is to assist in the lease, management, or sales of commercial property. They advise their clients on the best course of action in regards to how to invest in or improve their property or commercial asset. In other words, your agent won’t make decisions for you, but they do assist you in making better informed decisions. And can help you understand what the highest and best use for a particular property is, or what type of investment might be best for you.
This assistance covers a wide variety of topics within commercial real estate, including:
- How to find commercial real estate
- Providing a commercial property mortgage calculator or estimate
- Commercial real estate buying
- Advising on investing in a commercial property
- Estimating commercial property value
- Selling commercial real estate
- How to lease commercial property and determining lease rates
- Property management
- Improvement of property
Commercial real estate agent also assist clients in a wide variety of industries, including retail, farmland, medical, government, and other businesses or investment property.
Now let’s delve further into what to expect from your commercial real estate agent, whether you are a landlord, tenant, seller, or buyer.
Expectations for Landlords
Prior to signing a listing to lease a commercial property, your agent will present you with a market analysis. This will include comparable properties and their asking rents and serves as a guide to determine your own asking rents or commercial real estate lease. You will also receive a full marketing plan that details how the agent intends to find tenants for your property.
Once your agent receives an offer to lease a commercial property, they will present you with a full analysis. Finally, your agent will also play a significant role in negotiations. Having your agent’s knowledge of the market and help with negotiations can help you stay competitive while still accepting the best offers for you.
Expectations for Tenants
If you are looking to lease a commercial building or space, a commercial real estate agent will provide you with a list of properties that are available. You should get a property tour of spaces you are interested in, along with a map of the area, floor plans, asking rents, and any additional rent or commercial real estate lease information. You might also receive demographics, competition maps, and other market research depending on your specific needs.
Working with commercial realtors who have knowledge about spaces. That will become available prior to them going on the market can also be very beneficial to you. Armed with your agent’s knowledge along with their negotiation skills, you can find and help set the best terms and commercial real estate lease deal for you. Finally, your agent can also provide you with a list of potential contractors, interior designers, and architects should you be interested.
Expectations for a Commercial Real Estate Seller
While a seller’s expectations are similar to those of a landlord, there are some key differences. Your agent should provide a broker’s opinion of value with comparable properties, what they sold for, and when they sold. For those looking to sell commercial property, you will receive a review of financials and full underwriting completed by your commercial real estate broker.
Importantly, your agent will be helpful in pushing the buyer along while also doing their due diligence to make sure all the t’s are crossed and the i’s dotted, plus resolve any issues that may arise. Your commercial real estate agent can also assist with title issues, or at least point you in the right direction. With their help, you will be able to sell your property for the best price in a timely manner.
Expectations for a Commercial Real Estate Buyer
Investing in a commercial property has many aspects that your agent can help with. As a commercial property buyer, your agent can help you target the best property for you. Once you have a target property, they should provide you with comparable sales to determine a fair price. Your broker will also notify you of any deferred maintenance or other work to be completed upon closing and help walk you through all of those items. For commercial property as an investment, your agent can help review the financials given by the seller and perform underwriting.
Your commercial real estate agent is a valuable source of information about the future outlook of the market and can help you understand what kind of commercial leasing conditions you can expect. Finally, they can help line up inspections and help you stay on track to meet your due diligence timeline.
Final Words of Wisdom
Remember, each individual commercial lease or sale brings its own expectations; however, these expectations are a great place to start and can help you hire the right commercial realtors for you. Communication is important and can help contribute to a long-term, successful relationship with your commercial real estate agent.
If you are looking for a commercial real estate agent, JP Powell is ready to help serve you! He’s a seasoned commercial realtor and real estate broker with over 20 years of experience in Middle Tennessee’s commercial real estate market. Contact JP Powell today to learn more.