If you’re a residential real estate agent with a client in need of support related to their entrepreneurial goals, it’s best to refer them to a specialist. After all, there’s a good chance you wouldn’t recommend they buy a home with someone who exclusively works in commercial sales.
In this blog, we’ll touch on some of the main reasons why you should refer your client to a commercial real estate specialist rather than trying to navigate a new market.
Looking for insights on vetting commercial agents before referring them to your clients? We’ve got tips on that too! Click here.
The 411 on Commercial Real Estate
At the end of the day, the main reason why you as a real estate agent should refer your client to a specialist is the individual nature of the commercial sector. Yes, both residential and commercial real estate involve buying and selling property, but the actual processes involved couldn’t be more different.
Unpacking all of the distinctions between these two industries would take much longer than a single blog post. That said, here’s a brief list of just some of the core transnational elements that differ between residential and commercial.
- Transaction length (timelines)
- The number of people involved
- The complexity of financing
- Completing due diligence
- Conditions and contingencies
- And more
While you may meet the occasional agent or team who dabbles in both industries, the truth is that commercial real estate is far too complex to be considered a side hustle. If you’re looking to effectively support your client (or clients) as they approach their entrepreneurial or business goals, it’s best to refer them to an expert.
Want to know more about how commercial real estate is different from the residential side of things? Explore these other posts from our blog.
- What’s the Difference Between Commercial & Residential Transactions?
- Can You Use a Residential Agent to Buy a Restaurant?
- What Makes a Knowledgeable Hotel & Resort Real Estate Agent?
Unique Business Types & Micro Markets
On its own, the commercial realm is already its own separate and unique category of real estate. However, when you drill down deeper into the different micro markets and specializations of commercial real estate, things get even more nuanced. For instance, some commercial agents focus on restaurants and eateries while others work specifically with hotel properties.
Every micro-market has its own complexities and special considerations. So, depending on what your client’s specific business goals look like, you’ll want to find an agent who has direct experience and expertise in their areas of interest.
Keeping Your Agent-Client Relationship Strong
Lastly, referring your client to a commercial real estate agent rather than attempting to guide them through a commercial transaction yourself allows you to maintain the trust and goodwill that you’ve built with them throughout your working relationship. By connecting them to the professional who is best suited to guide their market journey you are showing them that you are completely committed to protecting their interests and ensuring they get the best help possible. When they need help with buying or selling a home in the future, you’ll be the first person they call.
If you try to guide them through a commercial transaction but aren’t aware of what to expect, there will likely be some hiccups or setbacks that arise. This could cause your client to become frustrated and unhappy with your service – potentially leading them to look elsewhere for help.
Searching for crash course insights on commercial real estate in Ontario? Check out these other Carve blogs.
- Why You Should Sell Your Restaurant With a Business Broker
- How Restaurant Real Estate in Canada is Evolving
- Key Terms in Restaurant Real Estate You Should Know
Commercial Leaders: Carve Real Estate
If you’re searching for a commercial real estate team who can assist your client in exceeding their entrepreneurial or business goals, get in touch with us – Carve Real Estate.
As leading commercial real estate professionals in Ontario, we’re tuned into the country’s most exciting, high-potential markets. Boasting expertise with a wide range of industry and property types, we provide educational, end-to-end guidance to ensure our clients have the upper hand.
Whatever your client’s commercial real estate needs may look like, we can help. Ensuring both you and your client(s) feel supported, informed and primed for success.
Know someone who’s looking to open, buy, or sell a business? We can help! Send us an email or give us a ring at 416-618-0054 to get in touch.
