Finimpact

Frequently Asked Questions(FAQ)

What is a commercial real estate agent?

A commercial real estate agent is a licensed industry professional who assists clients in the lease, sale, or purchase of commercial properties. The agent understands how to find investment properties and often advises the clients on the best courses of action when it comes to commercial real estate investments. In general, commercial real estate deals with investment properties, retail properties, business, farmland, medical facilities, industries, and other types of properties.

How do real estate agents get paid?

Most real estate agents get paid through commissions. The commission fees come out of the seller’s proceeds and are typically around 4 to 6 % of the property’s sales price. The commission is then split between the listing agent and the buyer’s representative.

Where do real estate agents work?

The career of a real estate agent is known for its flexibility. While some agents work in a typical office environment, others work directly from their homes. Whatever the case, real estate agents spend a lot of the time away from their desks, traveling to see properties for sale, showing properties to customers, networking, and meeting with prospective clients.

What skills do real estate agents need?

Some of the key skills required to succeed in the real estate industry include:

  • Drive, ambition, and charisma: real estate is a highly competitive field, and only the most ambitious ones are able to succeed
  • Selling and negotiation skills: naturally, you would need to be able to negotiate the sales price on behalf of your clients
  • Excellent communication skills: you would need to constantly interact with people and maintain a positive relationship with colleagues and clients
  • Great organization skills: you may be dealing with multiple properties at the same time, which requires excellent time management and organization skills
  • Willingness to spend time out of the office: real estate agents spend a lot of time viewing and showing properties, conducting open houses, and networking
What is the job outlook for commercial real estate agents?

The overall employment of real estate agents and brokers is projected to grow 4% between 2020 and 2030, which is a below-average rate. Despite the slower employment growth, about 47,500 openings for real estate agents and brokers are projected each year.

What is the typical work environment for a commercial real estate agent?

Most commercial real estate agents work in large companies in urban areas or in smaller firms in the suburbs. They spend a lot of time in the office or home preparing contracts and paperwork. At the same time, they are often away from their desks, showing and inspecting properties. 

Real estate agents have an incredibly high level of social contact, as they are constantly interacting with sellers, buyers, and other agents by phone, email, or in person.

All-in-all, the profession is known to be demanding, stressful, and high-paced, - but many choose it for the convenient flexibility and attractive compensation.

Conclusion

Without a doubt, the complex world of commercial real estate is not for the faint of heart. While the industry does offer high commissions and a non-traditional work environment, becoming a commercial real estate agent has its own unique challenges like specialized educational and licensing requirements or high level of competition.

Luckily, learning how to invest in commercial real estate doesn’t have to be difficult, with numerous online lenders offering easy financing approvals and quick turnaround times. For example, with the Lendio business financing platform, you (or your real estate clients) will be matched with the best lender and lending product to help you obtain the necessary financing quickly and painlessly. As a result, you will be able to benefit from commercial real estate investments to the fullest.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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Kal Salem

Reviewed by: Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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Somer G. Anderson, Ph.D.

Fact checked by: Somer G. Anderson Ph.D., CPA

Accounting and Finance Professor

Somer G. Anderson has been working in the Accounting and Finance industries for over 20 years as a financial statement auditor, a finance manager in a large healthcare organization, and a Finance and Accounting professor at Maryville University.

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