Though there are several common activities when comparing residential and commercial real estate, the differences are significant, and making a living practicing commercial real estate is generally much more demanding than in the residential markets. For example, there is a great deal more financial analysis, market demographics study and environmental research involved in a typical commercial purchase or lease decision in the commercial real estate realm. The commercial client is usually much more concerned with area statistics and data about the property’s location and the demographics of the local population and businesses than the available storage space in the back.
The Everyday Demands of Commercial Real Estate
The average day’s activities for a commercial real estate agent at Keller Williams Realty can be quite different from those of the residential agent. Here are a few of the activities you may find on your task list for the day:
- Lead generation with cold calls to business managers and owners
- Study of the lease payments for office complexes in the area
- Calculation of the break-even ratio for a commercial property
- Interpretation of current leases for a prospective multi-family buyer
- Report of population growth for likely patients for a medical rental complex
- Cap rate report for a prospective buyer of a small shopping center
As you can see, this list has activities that never come up for a residential real estate agent. There is a higher level of analytical activity for the typical commercial real estate professional. The rewards can be worth the effort required, but you should thoroughly compare your desires and abilities to the requirements for commercial real estate brokerages. There are many commercial opportunities available through Keller Williams Realty, which may be able to help you in finding your niche.