Real estate professionals often try to differentiate themselves from the competition by specializing in niche areas of the industry. For example, there are residential real estate agents who train to become luxury real estate specialists. One worthy niche to consider is the commercial real estate market.
Commercial Real Estate vs. Residential Real Estate
The real estate industry can easily be divided into two sectors — the commercial real estate sector and the residential real estate sector. The residential real estate industry focuses solely on properties that are designed for people to live in, such as single-family properties, condominiums, townhomes and apartment complexes. The commercial real estate industry, on the other hand, focuses on properties that are used for commercial purposes. The most common types of commercial properties include office buildings, medical centers, industrial warehouses, retail centers and restaurants, just to name a few.
The Benefits of Working as a Commercial Real Estate Agent
By focusing your real estate career on working with clients who are interested in buying or selling commercial properties, you will enjoy a few distinct benefits, such as:
- You will be involved in a real estate market that is less volatile than the residential real estate market. Typically, the commercial real estate industry is not as influenced by the ebbs and flows of the local economy in quite the same way as the residential market.
- You will be working primarily with investors and business owners, which allows you to have a more predictable schedule. Most of your work will be done during the typical business week, compared to residential real estate agents who often have to work during the evenings and on the weekends in order to accommodate their clients’ schedules.
- You will have the opportunity to earn higher-priced commissions. Commercial real estate transactions are much larger and more significant than the average residential real estate transaction. This means that you can work fewer deals throughout the year but still earn the income you need and want.
5 Ways to Grow Your Commercial Real Estate Business
- Become well-versed in the latest commercial real estate technology. Technology continues to transform the commercial real estate markets, and the most successful agents are the ones who are aware of the best platforms to rely on. There are commercial real estate apps and property management systems that allow you to effectively manage your workload, provide your clients with the latest information and offer superior customer service. Many commercial real estate investors are data-driven individuals who want recent, accurate information before they make their final decision. By becoming familiar with the best technology and utilizing it as a commercial real estate agent, you will be able to expand your client base in the local area.
- Consider real estate outsourcing for your commercial business. The reality of real estate is that you have to be able to manage your daily tasks as well as focus on your long-term goals, and this can be very difficult to do on your own. If you are truly ready to make the leap and take your commercial real estate business to the next level, you should consider real estate outsourcing. This is the process of hiring individuals to help you with your business needs so that you can focus on generating leads, serving your clients and increasing your transaction load. A real estate accountant, for example, can manage the financial aspects of your business and help keep you on track in regards to achieving your financial goals. A real estate virtual assistant is an individual that you can hire on an as-needed basis, and they can alleviate all of your administrative responsibilities. This will free up your time significantly and allow you to focus on what matters the most.
- Network within the local community in order to expand your reach as a commercial real estate agent. Networking may seem like a more traditional way to increase your visibility in the community, but there’s a reason that real estate agents have been relying on networking to grow their business for decades. By getting involved in local business organizations, attending networking events and going out of your way to meet your neighbors, you will be able to spread the news that you are working as a commercial real estate agent. Word-of-mouth continues to be one of the most reliable ways for real estate agents to grow their brand identity in a given area.
- Be aware of the latest commercial real estate trends, and adapt your business accordingly to take advantage of the moment. While the commercial real estate industry is typically a steady and stable sector of the market, it’s worth noting that there are trends taking shape that may change the industry moving forward. For example, many office spaces are beginning to renovate in order to accommodate a revitalized work force — one that wants to spend less time in those same buildings than they did before. By noting the up-and-coming commercial real estate trends, you will be able to better adapt your business to meet the needs of the market.
- Specialize within the commercial real estate industry. The more specialized you are, the easier it will be for you to get consistent work with regular clients. Some specializations to consider within the commercial real estate industry includes industrial properties, office space and medical facilities. By becoming an expert in a specific commercial property type, you will appeal to the most motivated commercial real estate investors in the industry. Serious investors always want to work with commercial real estate agents who can offer them in-depth insight and information into a given property.
No matter what type of real estate you intend to specialize in, you will find that you can benefit from real estate outsourcing. Hiring a real estate accountant or real estate virtual assistant, for example, will allow you to focus your efforts on the larger picture while others manage your day-to-day tasks. By investing in yourself as a real estate agent, you will be able to expand your scope and grow your real estate brand.