Commercial Real Estate Specialty Property Types
The commercial real estate niche is a large one. From offices to retail malls, billions of square feet of commercial space is leased to operating businesses. Let's take a look at the major property types.
From downtown high rises to suburban office malls, this specialty is a large one in the business of the commercial real estate. Though much of the volume is in leasing, when a sale happens, it can be quite large. A firm understanding of the needs of the lease client in their business goes a long way toward creating success as a commercial real estate agent in the office space.
Dealing with local and national businesses requires a firm grasp on your market characteristics. Repeat business in larger areas with national companies can make this a lucrative commercial real estate specialty.
This type of commercial property usually has a larger turnover due to the constant inflow of new entrepreneurs and the failure rate of new retail businesses. In addition to the regular property transfer considerations, location is quite important. Economic and demographic data, as well as traffic flows and other criteria, must be analyzed with regards to business sales volume.
Understanding the different types of leases is important for retail work. From the gross lease to the Triple Net lease, there are a number of ways landlords and retail tenants structure their relationships.
The industrial segment of commercial real estate includes warehouses, manufacturing, high tech, and processing type facilities. With the environmental, legal and zoning issues involved, this specialty requires a great deal of expertise. Both leasing and sales comprise this specialty.
Environmental concerns are much more in play in the industrial real estate space these days. There are a number of special disclosures and inspections that are required with the environment and pollution as the major concerns.
This is a highly specialized area of commercial real estate. The broker isn't just dealing with the real estate, but also with inventory, equipment, customer base valuation and more. With many owners having spent many years building their business, it's imperative that the broker be able to help them with a realistic valuation, especially when it comes to the intangibles, like the value of the client/customer list.
Though many residential real estate agents and brokers engage in some activity with a small unit and apartment investors, this specialty involves some very large transactions and can be a great niche for the commercial agent. It does require a high level of expertise in financial analysis, and the toolbox of indicators and mathematical tools is a large one.
Commercial Real Estate is a Great Specialty for Many Agents and Brokers
There are many areas of specialization in the commercial real estate business. Those agents and brokers interested in it can usually find a segment that suits their personality and financial goals. It usually takes much longer to become established in the commercial real estate niche, but the income can be worth it.