Commercial vs. Residential Real Estate Agents
3 things that separate commercial agents from residential agents.
3.5 min read
The real estate game is one that many want to get their hands into. Flexible schedules, larger payouts and significant networking opportunities are just some of the things that make real estate such a desirable career path. The real estate industry is divided into two unique specialties, residential and commercial. Each comes with its different set of challenges, and each holds its rewards.
Suppose you are considering starting your career in real estate or would like to switch from one specialty to another. In that case, it is vital to assess what sets commercial real estate apart from residential and what it exactly entails.
Here are three things that separate commercial agents from residential agents.
Different Client Needs & Considerations
In today’s market, houses seem to be flying off the presses due to demand being high, and supply, well, not so much. Some may even say that they are practically selling themselves. Although this is not the case, what holds some truth is that residential client needs and considerations are highly different from those of a commercial client. When making a significant commercial investment, clients and investors tend to look for the following: area statistics, data about the property and its location and various demographics. These considerations need to be met or aligned with their current business strategy for the transaction process to move forward.
Longer Transaction Times
More needs inevitably mean longer transaction times. In residential real estate, it is expected that agents can juggle multiple listings or clients at once due to their business nature. In most cases, transaction times tend to be shorter, allowing them to move through the process significantly quicker. For commercial agents, this usually isn’t the case. It may take months, sometimes even a year, before the transaction follows through. Although this may seem lengthy for some, it does have its end payoff, not only through commission but also for the client relationship that you had the opportunity to build. Who knows, it may even lead to bigger and better things down the road.
Larger But Fewer Commissions
In commercial real estate, the process of closing a deal from the initial interest phase can be lengthy, but boy, is it worth it. When in this field of work, the higher the price tag, the higher the payoff. However, like we previously mentioned, you are limited to how many transactions you dip your feet into at once. Focusing on one transaction at once may be difficult to maintain, but prioritizing significant deals can help you move the process along a lot faster, leading to more opportunities with your existing or potential clients.
Being a real estate agent in Toronto is appealing to many, but it does not come without its own set of challenges. Deciding whether to get into residential or commercial relies on your desires and goals as an agent. Getting into commercial real estate may seem like an intimidating feat, but with the proper knowledge and dedication, there is no doubt that your business will come out on top.
Reference
Kimmons, J. (2019, September 23). Commercial Real Estate Day-to-Day Work Life [Web log post]. Retrieved October 29, 2021, from https://www.thebalancesmb.com/is-a-commercial-real-estate-career-for-you-2866564
About Royal LePage Commercial Westhaven
Our commercial real estate industry and segment expertise coupled with Royal LePage’s national platform and integrated systems provides best-in-class real estate strategies and a competitive advantage that can’t be beat.
We help businesses identify opportunities and maximize their return on investment with actionable goals, centralized support services and a strong commitment to customer success. Our national partnerships help us establish, guide and execute successful business investments.
We offer commercial real estate agents a professional environment, focused 100% on commercial real estate. Agents can expect unlimited market boundaries to build their business without the interference of a heavy corporate structure. In addition, agents will be able to access Royal LePage’s national referral network of over 18,000 agents to develop more business in their target markets with incoming leads generated daily. The brokerage provides agents a suite of services including marketing, promotional, networking and professional development needs.
Innovation and service excellence have developed and propelled the Royal LePage brand since 1913. When you join Royal LePage Commercial Westhaven brokerage, you have the backing of one of the most powerful commercial real estate services company in Canada—Bridgemarq Real Estate Services Inc. (formally Brookfield Real Estate Services Inc.). Bridgemarq is a leading provider of services to real estate brokers and agents. They are an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses and is listed on the New York and Toronto stock exchanges.