A Guide to Becoming a Successful Commercial Real-Estate Agent
- By seoserviceusa93@gmail.com
- •
- 05 Nov, 2018
Thriving as a commercial real-estate agent requires a lot of dedication to the field. If you’re entering the field under the presumption that you’ll make money quickly in a minimal amount of time, you’re very wrong.
Working as a commercial real-estate agent requires a whole lot of work and even more perseverance. Without the right set of soft skills and work ethic, it becomes impossible to flourish in such a dynamic field.
If you’re interested in becoming a successful commercial real-estate agent, here’s what you need to think about:
Income
A commercial real-estate agent’s salary is primarily based on commissions. There are large real-estate firms that provide a basic supplemental salary and may even let guarantee a small amount of money for every sale but generally a commercial real-estate agent’s salary comprises of commissions.
Just like a residential real estate agent, commercial agents take around 3% of the closing amount as fee. Most brokerages usually will receive 35–40% of the fee while the agent keeps the rest.
Bear in mind that commercial real estate deals don’t close as fast as residential real estate deals; it can take up to a year to negotiate price, secure financing, sign documentation, close escrow and obtain ownership.
Compared to purchasing property, leasing transactions do take less time but for the real estate agent to receive commission, they’ll have to wait until the lessee assumes tenancy.
A commercial real-estate agent needs to get used to the idea of receiving paychecks irregularly. They’ll need to get comfortable with receiving paychecks irregularly; it can be months before they get paid for a sale they closed now.
Successful commercial real estate agents have a financial cushion that they can rely on for year’s worth of expenses. These funds are very important at the prime of your career when you have limited connections in the business and finding clients is tough. The financial cushion also comes in handy when the market isn’t doing well.
Personal Qualities
Real estate agents of any kind have to have to be superb salesmen. As you progress in your career, you’ll build a network of power players in the market consisting of competitors and potential clients.
As a commercial real estate agent, you’re expected to seek out leads. Get ready to introduce yourself in corporate gatherings and pass along business cards. Real estate agents are expected to be socially confident, persistent and incredibly patient. They need a level of charm and charisma to win over complete strangers as their client.
If you think you have what it takes to be a thriving commercial real-estate agent in Toronto, email us your resume. At Pivotal Commercial Realty, we’re always looking for new talent to join our team!
Before you go ahead and sign any papers to purchase commercial real estate in Toronto, spend some time learning and understanding the market.
Investors in commercial real estate have to consider the following before they decide where they want to put their money:
Interest Rates
For the first time in 7 years, the Bank of Canada increased its interest rate in 2017. The interest rate set by Bank of Canada has a direct impact of the on the cost of taking out a variable rate mortgage as well as other loans.
Fluctuations in the Bank of Canada interest rates also influences the growth of corporations and consumer spending, which impacts the demand for both residential and commercial real estate.
Investors all over the globe think of Canada’s commercial real estate market as a safe haven. Even though there is some uncertainty about the rise of interest rates, the contrast between tight supply and growing demand for real estate in the country has been a driving force in the real estate market.
The commercial real estate market continues to be viewed positively by international real estate investors with Toronto and Vancouver being the most popular destinations. In 2018, Toronto was considered one of North America’s major real estate markets to invest in. In 2019, both Toronto and Vancouver are expected to be in the continent’s top 3 destinations.
The growth in commercial real estate is being pushed by the increased sales in office buildings. Even the political uncertainty between US and Canada did not hamper the success of commercial real estate in the country.
Major Markets
In 2018, Canada’s commercial real estate sector hit a record breaking $36.2 billion. This growth can be attributed to the increasing demand of industrial, office, retail, multi-family units and ICI land.
Those looking to invest in commercial real estate in Canada should consider Toronto, Vancouver, Calgary, Montreal and Ottawa. In 2017, most of the growth in the sector was driven by office buildings but in 2018, industrial real estate led the way.
In the near future, the demand for industrial real estate is expected to rise due to the increase of e-commerce business in the country that are looking to build fulfillment centers nearby for fast and easy delivery.
The commercial real estate market in Canada is continuing to flourish. However various factors are expected to make bring changes to the landscape in the future.
2018 proved to be a record-setting year for the commercial real estate sector in Canada due to an influx of new projects and high occupancy rates. With that being said, property owners are advised to monitor fluctuations in the market. Like all real estate, the commercial real estate sector of Canada is prone to disruption.
Let’s take a look at the key disrupters in commercial real estate in Canada:
Shared Workspaces
There has been a dramatic shift in the way people work in the country. Canada is experiencing a boom in the start-up community , many of which are led by Millennials.
Traditional office spaces are being replaced with co-working spaces that are designed to enhance collaboration, allow for greater flexibility and lower operational costs at the same time. Open offices are much cheaper than conventional cubicles. Younger professionals have found a way to work with limited office space.
Landlords can’t just lease out their building to select tenants, they have to redevelop their office space so it caters to the demand of the modern workforce. This can involve offering flexible suites or open concept office spaces.