Commercial Real Estate Brokerage – A Risky Yet Healthy Business
Real estate is one of the last pillars of the free-enterprising entrepreneur who buys properties in hope that they will rise in value because of improvement in market conditions or renovations. To make it in this career you need to be savvy, hard working, willing to take risks and fortunate. It is important, then, to think carefully of how you can succeed in this market through better wits, a superior management approach or a unique niche strategy.
Whether you are updating your current facility, entering a build-to-suit location or looking to build a property, commercial real estate brokerage associates or simply called brokers can help you manage the construction process. From property rehabilitation to inspection, from zoning restrictions to building codes, associates guide you through all necessary steps to ensure your project is completed efficiently and within budget.
Commercial real estate brokerage offices use sales associates who market office buildings, hotels and many other types of commercial real estate for brokers. Commercial real estate brokerage sellers usually specialize in a particular property type such as apartments, retail, office, and hospitality, shopping centers and industrial plants.
In commercial real estate brokerage, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed.
Commercial real estate brokerage is a risky business. Brokers are paid in straight commission – cashing out only if they were able to close deals. Brokers negotiate leases for retail, healthcare, high-technology, and other industries that are seeking office and industrial spaces. They represent both landlords looking to market office and industrial space and tenants looking to relocate or expand. They help secure the rights to redevelop the space. They spend some of that time away from the office, touring clients’ conditions and trying to understand their corporate culture and what kind of office or industrial space they need to operate. Brokers’ pay usually depends on market conditions, not years of work experience, said Al Marco, a partner in Joseph Chris Associates, a national recruiting firm in Chicago that specializes in placing commercial real estate brokerage executives.
The risks of the commercial real estate brokerage are certainly offset by financial rewards. A leader in the commercial real estate brokerage industry, Coldwell Banker Commercial® was founded in 1906 after a devastating earthquake in San Francisco.
Some brokers of a commercial real estate brokerage focus on the sale, purchase, lease, and development of commercial-use land properties. Associates specializing in multi-family property transactions are well versed in the unique elements and trends that shape successful multi-family transactions.