The Mentality of Residential vs. Commercial
The first thing to remember is that residential and commercial real estate (CRE) are completely different. It's all about business in the world of commercial real estate. In most cases, you're assisting a client with a commercial transaction, such as a building sale or lease. When it comes to residential real estate, whether you're attempting to assist a client purchase, sell, or rent a home or apartment, you're dealing with emotions and tight budgets, which can be draining for some brokers. Commercial real estate may be a better fit for you if you enjoy creating relationships, working with figures, and prefer to work with building owners, managers, and investors on larger transactions.
The Importance of Networking
In commercial real estate, as in any other field, who you know is crucial. While you may already have a great list of residential leads, you'll probably need to reach out to your contacts to see if they have any commercial clients that want to buy, sell, or lease. This entails putting in the effort and attempting to build relationships in any manner possible, including utilizing any affiliations such as BOMA International and REBNY, as well as tapping into your firm's resources for potential leads.
Planning for the Switch and Gearing Up
Keep in mind that you'll need to devote time to studying the business, and you'll most likely be paid on commission. It's a smart idea for many people who change careers to build up a small financial nest egg before making the switch, and the same is true for CRE. Learning about industrial and commercial neighborhoods, as well as the many building kinds — retail, medical, office, industrial, and land — takes time. Each provides brokers with unique sales and leasing options. A broker must be informed about each building type and be able to discuss and deliver on the amenities that a customer may demand in order to be successful. Brokers must also be familiar with business clients and investors, as well as the zoning, tax, and finance issues that affect commercial transactions. It's also a good idea to become certified as a commercial real estate expert to boost your credibility and competence. While technology has its advantages, traditional shoe-leather-to-the-ground canvassing—a.k.a. The key to success is going out there, talking to people, and seeing as many properties as possible.
Commercial Real Estate Can Be More Lucrative If You Have the Right Character for It
CRE has the potential for substantially bigger commissions than most residential properties, whether it's a factory, office building, or retail space because sales and rents are often much higher than those of an apartment or condominium. While CRE has a lot of advantages and can be a good career choice (especially if you already have a track record in residential real estate), bear in mind that it's not always as simple as it appears. Though coming from residential real estate will make it much simpler to achieve than coming from another business cold turkey. In both circumstances, you'll have to learn a completely new aspect of the business while also changing your perspective and mindset.