A commercial real estate broker (also known as a commercial broker) is a professional who helps clients with purchasing, selling, or leasing commercial properties. They start off with the same license as residential real estate agents, but gain on the job commercial real estate experience afterward. A commercial broker is similar to a commercial agent. However, the broker has the license to manage their own business and receive commissions directly from sellers and landlords. Commercial agents must work under the umbrella of a commercial real estate broker.
The job of a commercial real estate broker is difficult to get, but can be very rewarding. With proper training, a successful broker will have the necessary expertise to help clients lease their buildings or find the best properties for their needs. The broker will also provide expert analysis of market conditions and financial factors, and will be able to negotiate the best terms for the client. A broker will handle all the aspects of a lease or sale and will negotiate the best price possible.
What Do Commercial Real Estate Brokers Do?
It depends on their specialty and who they are representing. Their are many different types of commercial properties such as healthcare, industrial, office, multifamily, etc. Also some some commercial brokers only represent landlords and sellers, while others prefer to only represent the best interest of tenants and buyers. There are those that like to work for both type of clients as well.
When Represent Tenants
In tenant representation the brokers job is to find space that meets their clients current and future business needs and represent them in lease and purchase negotiations to ensure they get the lowest prices and best terms possible. These brokers have in depth market knowledge as well as access to online databases to search available properties (e.g. Costar & Loopnet) and access to site selection tools for demographic and consumer spending indicators such as gender, age, income, spending, etc. A good commercial real estate broker will keep you informed of all of the latest developments and will keep you updated with the most up-to-date market statistics.
The agent also keeps abreast of market trends in the area, and possesses a wealth of information about the property market. They can also tell you if a property is priced fairly, because they have access to the entire commercial listings. These agents can provide valuable insight into how much a potential client should pay for a space.
A commercial real estate broker will analyze lease payments, including the negotiated terms and conditions of the lease. The agent's job is to find the right space for their client, avoiding financial and legal risks, and negotiating the best deals. Once they've found the perfect space, they will work with the landlords and tenants to make sure the deal is done legally. Typically, brokers will negotiate the best terms for their clients, so it's better to hire someone who is a licensed agent.
When searching for a commercial property for a client below are some of the things they will be looking for:
- That the building has enough space to accommodate the current and future needs
- Expansion options in the building
- Technology the building offers
- Proximity to major highways and public transportation
- Proximity to restaurants and convienences such as day care centers, salons, dry cleaning etc.
- If the client desires they lookout for locations with foot traffic
When Representing Landlords
When representing landlords the commercial brokers job is to bring tenants or buyers to a building. The broker's job is to find tenants who are a good fit for a space. They are also responsible for keep the building owner updated on the latest developments and market statistics. They assist the owner and asset manager with determining the highest price possible for which they can lease or sell a space/building and help them with financial analysis.
According to the Information About Brokerage Services
- Clients interest above all others including the commercial broker
- Inform client about property information
- Answer all client questions and present all offers
- Treat all parties to the commercial real estate transaction fairly
How to Become a Commercial Real Estate Broker
If you want to become a commercial real estate broker there are several steps you must follow.
- You first have to get the same real estate license as a residential realtor would get
- Find a commercial real estate company to work for to get on the job experience in your desired niche
- You have to have at least 4 years experience as a licensed sales agent
- Must take and pass the real estate brokerage classes and test