Differences Between Residential Agents and Commercial Real Estate Advisors

There are differences that distinguish a commercial real estate Advisor from a residential REALTOR®, and that equates to several reasons to select the correct Advisor for your specific needs.

How are they different? Commercial real estate Advisors are skilled in dealing with a more “corporate” way of thinking throughout each real estate transaction. From education in the field of finance and business to negotiation tactics and contract management, they have skills that pertain specifically to commercial property sales and development. Whereas residential decisions are more emotionally driven, commercial real estate decisions are most frequently about economics, logistics, and employee retention.

This is important when you are dealing with a real estate transaction that is based upon making money also referred to as a return on investment (a good investment versus a bad one). It is quite different than finding a client’s “dream home”.

What qualities should you look for in selecting your commercial real estate Advisor?

• A great listener - they should be keenly focused on YOUR objectives for an investment, and whether you are looking for cash flow, appreciation or a combination of both, as well as your tolerance for risk.
• The ability to perform financial analysis, along with the ability to articulate recommended strategies, potential risks and compelling opportunities.
• A high level of understanding with respect to industry terms, definitions and financial metrics. They should be able to present each of these to you in a format that is easily understood and not confusing or intimidating.
• A skilled negotiator that places the best interests of their clients above all else.
• A career professional with demonstrated experience and more importantly - expertise in successfully completing assignments that are similar to your property and your goals.
• Thorough knowledge of the local marketplace, developing trends that could affect your property, along with possessing knowledge of the national marketplace and economic conditions that may impact your property or surrounding area.
• Select the professional with demonstrated experience, and more importantly, expertise in successfully completing assignments that are similar to your property and your goals.
• Select the professional that is affiliated with a great company and even better, people to assist you in your commercial real estate and investment decisions.
• Perhaps most importantly, choose an Advisor who shares the same goals and objectives for your property as you do, and one who can clearly explain their strategy for success that you will understand and see as realistic.

Select a commercial real estate Advisor with an experienced, trusted and reputable team working alongside with them.

If you are seeking a commercial real estate Advisor, you probably have a lot riding on the success of this next transaction. Work with a firm that has demonstrated success.

Remember to look beyond the Advisor, to the firm, seeking one that provides a comprehensive and diversified operating platform to real estate owners, developers, investors, tenants and lenders.  They should have experience in valuation and offer advisory and transaction services to business owners and potential buyers.

Look for:

• A proven track record with transactions involving office property, retail development, industrial facilities, hotels and hospitality assets, multi-family assets, and land development projects.
• Direct experience and proven knowledge of the local market – They are behind several big success stories
• A company that is known locally, but also has the advantage of national brand recognition and a reputation built on trust and experience.

Ideally, the commercial real estate Advisor you select to represent you will be part of a Commercial Division Team, one which possesses local and regional market knowledge, provides expert analysis, and maintains an array of industry relationships – all based on honesty, integrity, and a commitment to represent their client’s best interest throughout every transaction.