Commercial agent vs Residential agent

    Commercial Vs Residential Real Estate Agents There are many similarities between commercial and residential real estate agents. Still, it is important to understand the key differences to determine which path would be the right fit for you. Education & Training: Real estate agents will be required to complete training and education to obtain a real estate license regardless of whether they are involved in commercial or residential real estate. However, commercial real estate agents should have a college degree in either business or finance to better understand the financial concepts of the deals they will encounter and undergo more mentorship training before entering the field. Property Types: The clear distinction between these two types of real estate agents is the type of property they work with. Residential real estate agents only work with residential property, whereas commercial agents can encounter property used for multiple purposes. Therefore, commercial property agents must have the knowledge required to distinguish the proper processes and legalities of both residential and commercial property deals. Earnings: Commercial property tends to present a higher earning potential than residential real estate. Although it is easier to get a residential property off the market, commercial agents can make a higher commission from the properties they sell. Clients: Residential properties are easier to sell due to economic factors that can affect the commercial real estate market in different ways. Residential real estate agents have an easier time searching for tenants to occupy their properties, while commercial real estate clients are less abundant. Worklife: The work-life of a commercial real estate agent vs residential agents vary in work schedules and responsibilities. Residential agents can expect to be available to work at unconventional work times, including evenings and weekends. On the other hand, commercial real estate agents typically stick to the 9 to 5 workday. However, commercial agents take on a heavier workload, which will involve researching and reporting on market and economic trends to ensure their more intricate deals. Being a commercial real estate agent and a residential real estate agent are both fulfilling and at the end of the day you have to choose the right path for you. If commercial real estate sounds like it may be for you make sure to lookout for more information on commercial real estate.

What are the Different Commercial Lease Types

There are different lease types in commercial real estate. Different property types use different lease types and everything is negotiable, so you can mix the different lease types to create the best lease for you and your business. Here are the different lease types. gross lease full-service lease triple net lease modified lease percentage lease Full-Service LeaseIn a full-service lease, the landlord directly pays all costs associated with the operation of the building and the property.Although the landlord pays these costs, the tenant is actually covering those costs in the rental rate being paid.The landlord takes care of the administrative and billing processes and charges the tenant accordingly. More clearly stated, these costs are factored into the rental rate quoted and paid by the tenant. An industrial lease is often a form of modified gross or a modified net lease structure, whereas an office building lease is usually full service. Although the words gross and full service are different, the meaning is basically the same. Common usage of these phrases usually relate full service to office space and gross to industrial space, but this varies by market and by property, so the terms of lease itself must be clearly understood. Triple Net LeaseAnother one of the most common leases is the Triple Net Lease arrangement. In this type of lease, the landlord wants to net a certain amount per month, so the landlord requires the tenant to pay certain extraneous expenses, typically these are taxes, insurance, and maintenance. These expenses are meant to include all those operating expenses incurred by the owner by simply owning the property. Triple net leases can be used for ground leases, office buildings, retail leases, or whatever type of property the parties may elect to lease. It would be unusual, however, to have a triple net lease for a multi-tenant, multi-level office building. Triple Net Lease/Net Lease: Tenant pays taxes, insurance, maintenance (Maintenance often includes repairs, utilities, and operating expenses.) Gross LeaseA gross lease is an agreement that requires the tenant to pay the property owner a flat rental fee in exchange for the exclusive use of the property. The fee includes all of the costs associated with property ownership, including taxes, insurance, and utilities. Gross lease: Landlord (owner) pays taxes, insurance, maintenance, operating expensesModified LeaseA modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease's inception, but it takes on a proportional share of some of the other costs associated with the property as well, such as property taxes, utilities, insurance, and maintenance.Percentage LeaseA percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. It is a term used in commercial real estate.There are also less popular lease types like land lease. If you are interested in a commercial lease for your business please reach out to Ritzberg Realty at 404-853-8619. If you're an agent who's interested in learning more about how to negotiate a commercial lease sign up for my course.Follow up on IG @ritzbergrealtyLike our Facebook page Ritzberg RealtySubscribe on Facebook Ritzberg Realty

5 Topics Top Commercial Real Estate Brokers Are Discussing

1. Tenants in less expensive real estate markets and landlords in higher-rent markets are both feeling the pinch as tenant improvement expenditures rise. Construction material costs (particularly lumber) are fast-rising, and in most major marketplaces, delays in scheduling are common due to municipalities working from home. Holdover clauses, swing space, and co-working providers that have been well-negotiated can all help with timing issues.2. There have been no instances of space design adjustments, according to two significant asset managers that represent over 10 million SF of office space from LA to NYC. As office renters plan for the long run and look past Covid, pre-pandemic tenant build-out plans remained mostly constant.3. Within their workplace space, tenants are more concerned with amenities, technology, and wellness. As companies look for strategies to boost workplace usage, encouraging their employees to return is becoming more important.4. In some markets, sublet figures may be exaggerated when brokers observe their customers removing their offices from the sublease market and planning to rehire their employees.5. Commercial real estate owners must prepare for the impact of 5G on their properties and future tenant demand. Large property owners (such as the LV Raiders) see 5G as a fifth utility. When signing a 5- to 10-year lease, tenants should keep this in mind. Equipment, appliances, and other important business technologies may be better tuned for 5G, even if it isn't widely used yet (during your next lease term). In the future, contracts should clarify how a building owner assures that their premise is fully capable of offering 5G to its tenants.

FOUR THINGS TO KNOW BEFORE MAKING THE SWITCH FROM RESIDENTIAL REAL ESTATE TO COMMERCIAL REAL ESTATE

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 NetworkingIn 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 UpKeep 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 ItCRE 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.