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6 Pros Of Becoming A Commercial Agent Rather Than Residential
There are so many rules and regulations governing the process of real estate transactions that agent who serve both residential and commercial clientele are few and far between. It is usually a case of either or. Either you put your full focus on commercial, or divert it to residential. Come to think of it. Do you think an organisation looking for 40,000 square feet of space will trust you with their needs when all you have been involved with are residential homes at less than 2,000 square feet?
Residential homes are easier to make your mark when you consider that everyone is a potential customer and that the number of residences heavily outweigh the numbers for commercial. But even though commercial clients can be difficult to pin down and acquire, the huge rewards that come with this segment is tempting enough for agents to take the plunge or make the switch.
Commercial agents are far more respected by businesses compared to residential agents by home owners. They present themselves in more formal dress codes. And they usually are very tactful with managing customers. This means that not many people are naturally suited for this role. A lot of training and experience is required for one agent to really do well in this segment. Whereas, individuals who are lacking in certain personality traits might never enjoy the success they feel they deserve. Here are pros of going commercial.
You are entering an arena where you can expect much lesser competing agents to deal with. Few agencies specialize in commercial properties and even when you find one, their workforce will be significantly smaller than agencies which serve residential. So when you do acquire a lead or a customer, there is a smaller chance of losing your marbles to a competing agency or agent.
More indulging environment
As the clientele you are dealing with could very possibly be mega corporations, you can expect your employer to pull out all the stops to impress clients in every aspect. This can include fine dining, overseas trips in premium hotels, and even participation in high-end mastermind events. Professional service providers will also be as excited to meet you as you are to meet them.
And since commercial agencies will most likely have smaller workforces, you can also expect greater attention given to you from veterans to coach you. Activities are easier to monitor and research material you get to study will inevitably have to be top-notch.
You might not have to go prospecting
Multinational corporations often appoint agencies to help them with sourcing and relocating. These deals are often conducted at the highest level. So if your lucky start is shining down on you, you might be delegated the roles of fulfilling these commitments that you agency have agreed to. Meaning no prospecting needed. But when you are freshman, you will probably be understudying a more experienced player. It will be advantageous to you as well to pick the brain of experienced agents in the field.
It is not an exaggeration to say that one big deal can make up the amount of income you made in the last 3 years. Just 1% of a $1,000,000 deal works out to $10,000. And big companies can buy, lease, or sell properties at tens or hundreds of millions in price. You think this is far-fetched? Just try not to be fazed when you run into your first $100m prospect.
The gold is in leasing
We have to admit that big time transactions do not happen very often. And when they do, you might not even know where is the queue to offer your services. But the rental market is always buzzing with activity. And rental for high demand space like retail shop fronts or prestigious addresses can command huge rental. The higher the rental, the higher you commissions.
Businesses taking up office or industrial space relocate all the time because of their needs. Sometimes even a dispute concerning an insignificant amount of rental increase can trigger a disgruntled business owner to move as a matter of principle. Your services will then e required again to seek a new place.
Less demanding working hours
As you can expect, representatives of a commercial client will work office hours. This means that they will not have time for you after office hours or over the weekend. So you can forget about having to manage a viewing on a Sunday or having to attend to a customer only after working hours. Isn’t this the best part?