Commercial real estate (CRE) was one of the industries that dived when the pandemic hit the entire world. Despite this, the pricing of most commercial properties increased by 1.3%, making it difficult for most businesses to start right.
That’s why the help of an experienced commercial estate broker might be helpful for anyone who wishes to successfully navigate the tricky task of choosing the perfect commercial space.
What is a Commercial Real Estate Broker?
A commercial real estate broker assists clients that need to purchase, sell, lease or rent non-residential properties such as office space, warehouse, or retail space.
While residential and commercial brokers start with the same license, their job specifics and knowledge requirements differ.
Residential real estate broker – Professionals whose main focus revolves around living spaces. Clients looking for their dream home or wishing to sell their residential property should consult real estate agents.
Commercial real estate (CRE) broker – Commercial real estate, on the other hand, is a space for conducting business and requires expertise on current economic trends, financial analysis, market data, tax and zoning laws, in-depth location, and demographic information, and more. Commercial agents are required to liaise with the different parties involved in the transaction.
There are numerous categories of commercial real estate that a broker could specialize in. Since the nature of each business is different, requirements for commercial spaces also differ.
For example, if a logistics company wants to upgrade its commercial space, it would need help from real estate brokers specializing in logistic areas.
How is it different from a usual realtor?
It is common for most to use the words ‘agent’ and ‘broker’ interchangeably. However, there is a clear distinction between the two.
Commercial real estate brokers and agents are both licensed professionals. The biggest difference is that brokers can work independently, hire real estate associates as an employer, or become a member of a brokerage firm.
On the other hand, Agents need to be employed by a firm or by a licensed broker. Simply put, agents who wish to set up a brokerage must continue their education and acquire a state real estate broker license.
Real estate agents are normally paid on a commission basis. This means they acquire a percentage of the sale price of a property or deal. Brokers earn commissions from a direct deal or earn it as a share from agents working under them.
Should you hire a commercial realtor?
Most people in need of commercial space for their businesses often decide not to hire brokers, thinking that it’s a task they can deal with independently.
While that might be the case, hiring a professional CRE broker can prove to be more advantageous for various reasons.
- Commercial real estate can be a tricky thing to deal with. You’ll need the knowledge of seasoned brokers to help navigate and analyze numerous options and consider different possibilities. On top of their expertise, they can provide advice to make certain situations easier to understand. All of these are needed to make well-informed decisions.
- Landlords or property owners would most likely have their brokers representing them or have more experience in commercial transactions. Not having the assistance of a professional, especially for first-timers, might put you in a disadvantageous situation.
- Having a professional helps save time. Learning the entire market will take more than several weeks. It’s better to have someone help analyze everything for you.
- The network of a trusted brokerage will help provide even better options for your commercial space search. This also offers a more flexible opportunity for negotiations.
Unless you are confident and experienced, the best option would be to hire a commercial real estate broker.
Employing the assistance of a CRE broker could provide numerous benefits, especially for those planning on starting their business with the right commercial space. To choose properly, having a clear knowledge of what they do and what they can help you with is essential.
When choosing commercial properties, it’s also best to outline certain requirements according to your business plans so the broker can efficiently provide you with the best options that match your needs.
If you are looking for the best realtor to help you in choosing the perfect commercial property, at KW Commercial, Vancouver’s trusted commercial real estate, warehouse, and distribution center broker, we are always ready to provide seamless negotiations so you can have the best place to do business.