Three Stages of Commercial Real Estate
How is the commercial real estate process different from residential? There are quite a lot of ways that commercial real estate is its own market, and requires different kinds of workflows. Commercial real estate agents need to be prepared for the unique challenges and competitive opportunities that arise in this market. Here’s some of what they deal with on a regular basis.
Doing Market Analysis
There’s no Zillow for commercial real estate. Instead, commercial real estate agents do significant amounts of work figuring out roughly what a commercial property is worth, and what kind of baseline to set as they move toward price negotiations with buyers.
Also, unlike the residential market, commercial real estate values can to some extent reflect the value of an existing business or business opportunity. It’s not just a case of calculating square feet and numbers of bedrooms and bathrooms.
With that in mind, this detailed work is a major part of the typical commercial real estate process.
Marketing for Commercial Real Estate
There’s also the phase of the process that you might call ‘finding a buyer.’ Here the commercial real estate agent typically has to be proactive in marketing the property and creating visibility in order to get a competitive buying pool.
There’s a lot of work involved here, too, and that’s why the idea of exclusive listing is so important in commercial real estate. (In fact, some agents would say that a seller who wants to buck exclusivity is not serious about selling!) You’ll find a lot of agents requiring some measure of exclusivity in a contract, in order to invest the time and effort in doing the right kinds of marketing for sellers.
Performing Price Negotiations
When there’s an initial interest, the process moves into the phase of price negotiation. If this is based on a solid market value research model and the right foundation in terms of early work, it may be easier to close the deal, or there may be less ambiguity on negotiated pricing.
These are just some of the things that commercial real estate agents know as part of their jobs. At Dillingham & Toone Real Estate, we offer commercial real estate services as well as residential and relocation services. We also provide for property management and more, to help our clients to keep on top of everything that is required at any stage of a real estate process. Let us help you to manage your assets in an optimal way – to get more out of the hard work that you’ve put into your properties.