Understanding the 4 Types of Clients in CRE
3 min read
As the commercial real estate industry in Toronto continues to grow, so do the number of investors that want their piece of the pie. In commercial real estate, you rarely work with one type of client. This real estate sector comprises several different realms, making it difficult to differentiate for someone who is just starting or recently made the switch.
To break it down, here are the four main types of clients you will be working with as a commercial real estate agent and their common expectations.
Landlords
When working with a landlord on listing their property, you must bring your knowledge of the area's comparables to the table. This includes conducting a thorough market analysis on properties and their asking rents in the surrounding area. This will, in turn, help both you and the landlord determine a reasonable asking price for their property. A marketing and negotiation plan is also expected to drive significant tenant interest.
Tenants
Coming by a commercial property to lease is just as, if not more difficult, in today's real estate market. A commercial tenant is often looking for a property to house their business in a location that will increase traffic and revenue. To help your tenant find their ideal property, it is vital to constantly lookout for new and existing listings that come onto the market. When bringing these properties to the attention of your tenant, you must always consider the location, floor plans, asking rents, amenities and demographics of the area.
Buyers
Like a tenant, a buyer is interested in a property that will fulfill their business needs. Whether to keep for themselves or add to their portfolio, buyers will have similar expectations to tenants. An analysis of the property and the market will be a good starting point for your buyer search.
Sellers
When working with a seller in commercial real estate, acquiring knowledge on comparables is vital to determine your listing approach. Identifying key selling features of the property such as location, amenities and more should be included in your property analysis. Doing your due diligence and marketing the property correctly will help you find an investor for your listing all that much easier.
Each client base comes with its own set of expectations. Knowing how to meet them efficiently and effectively will help you and your client come out on top.
Reference
Dutton, D. (2020, September 8). Expectations Of A Commercial Real Estate Agent [Web log post]. Retrieved August 23, 2022, from https://www.forbes.com/sites/forbesrealestatecouncil/2020/09/08/expectations-of-a-commercial-real-estate-agent/?sh=6a389eff4803
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