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Commercial Property Agents
Real Estate Agents in Commercial for all your property requirements.
Why Should I Invest in Real Estate?
An agent will decide early in his career whether to be a sales or commercial leasing agent. While both types of specialists work hard to
secure favorable transaction terms for their clients, there are clear differences between selling a 150,000-square-foot office building and
securing a tenant to rent 10,000 of those square feet for 10 years.
Both specializations can be lucrative depending on your ambitions and work style. Remember, too, that there are opportunities beyond owner
and landlord representation. Many agents specialize in buyers and tenants. Some even represent buyers and sellers or tenants and
landlords, though this can create sources of conflict.
What a Seller’s Agent Does
A disposition specialist secures the highest purchase price for a
client. He does this by capitalizing on a building’s strengths, such as
a prime location, high-end fixtures and recent renovations, and
negotiating on any weaknesses, such as problems with the heating,
ventilation or plumbing systems. A seller’s agent must know his client’s
lowest acceptable offer, and how to negotiate so that the discussion
never gets to that number. You can make the negotiation process easier
by providing the seller with as much information as possible about
similar properties on the market, trends in acquisitions and the latest
news on the lending market.
What a Buyer’s Agent Does
An acquisition specialist works with the same individuals, companies and
institutional investors as a sales agent, but he helps them secure space
based on their needs, specifications and budget. It’s essential to
understand a client’s priorities as a building owner, landlord and
possible resident. Listening to your client and reviewing his business
plans, real estate portfolio and any documents related to past
lesser-lessee relationships can help you find the right building for his
needs.
Some clients also have building or structural requirements. These may
include anything from seismic retrofitting to flexible office space, or
even green-building features like solar roofing or HVAC (heating,
ventilation and air-conditioning) systems that reduce utility bills and
save energy. Knowing what’s on the market and how much these features
and amenities cost can give your client a realistic understanding of
what he can get for his money.
How Sales Agents Get Paid
When one agent works with another agent to bring a seller and buyer to
the table, the two agents typically split the 4% to 6% commission
because both had a hand in closing the deal. Both agents are paid after
escrow closes, and most must split their share of the commission with
whichever broker they hang their license under.
What a Leasing (or Owner’s) Agent Does
Agents who represent landlords still represent building owners, except
these owners aren’t looking to sell their space, they simply want to
rent it out. Most leasing agents are on retainer with the landlord for
either one property or an entire portfolio, and are called to action
when vacancies arise. In many ways, a leasing agent’s job requires
significantly more legwork than a sales agent, as leases become broken,
expired and signed frequently. A successful leasing agent always knows
which companies are in the market for new space, which leases are
expiring soon, and which buildings offer comparable space for more or
less money.
The leasing market can be extremely competitive, and tenants can quickly
be lured into a long-term lease with easily won concessions. Agents
should know what concessions his client is willing to make to sign a
lease. Common concessions include free rent, extra parking spaces, a
state-of-the-art security system or a build-out in which the lessee’s
space is customized for its needs. An extensive knowledge of ongoing
occupancy trends and aggressive marketing tactics will benefit you in
this field, especially in a tenant’s market where vacancy rates are
high.
What a Tenant’s Agent Does
Tenant representatives secure long-term space for entrepreneurs and
businesses big and small. Like a buyer’s agent, a tenant representative
must appreciate how much space the tenant needs. You have to also
examine how crucial location, parking, pedestrian traffic flow, and the
potential for expansion or downsizing are to a client.
Leasing terms, such as the rental rate, leasing period and penalties for
ending the lease early must also be discussed, which may involve lawyers
and accountants. It is also the agent’s job to fight for the tenant’s
needs – both the current needs and perceived needs down the road when
the lease is still in effect. You should also keep in touch with your
client between the time they sign the lease and occupy the space. This
is done to ensure that the client is able to move into the space they
were promised, in the condition promised, on the day it was promised,
per the lease agreement.
How Leasing Agents Get Paid
The landlord’s representative usually receives one-half of his
commission when the lease is signed and the other half when the tenant
moves in. Commissions are normally 4% to 6% of the lease’s overall
value, which is based on the space’s square footage and the duration of
the lease.
Naturally, larger spaces leased for longer terms earn higher
commissions, but they can require extensive work by the agent. If a
buyer’s representative participates in the leasing negotiations he
typically receives one-half of the commission, though he may receive a
higher share in a tenant’s market.