I delivered a presentation to a sales team of material-handling specialists last week. Why you may wonder?
Two reasons. First, I’ve transacted 19 deals all over the Western United States with the president of this organization since 2009, so we’ve grown together. This was one way of giving back to a group that’s been very kind to me.
Secondly, we work closely with their sales team in assisting them to execute deals. The better they understand our world, the better we both benefit.
Some of you reading this column are commercial real estate practitioners. Others of you own or lease commercial real estate and pick up tidbits along the way. Still, others may be considering the field as a career or a way to supplement their income. Regardless, of your vantage point, I believe you’ll find value in today’s topic.
Let’s center the column on three of the four topics discussed: CRE brokers and how we’re defined, paid and why you should care.
What are CRE brokers? Simply, commercial real estate brokers assist owners and occupants of commercial real estate in finding buyers or tenants for vacant buildings.
Commercial real estate companies are generally local, regional, national or global, determined by the reach of their brokerage. These firms service a certain geography through their network of agents.
Additionally, most firms find their agents on either or both sides of the transaction – representing the owner and/or the occupant. “Dual representation” describes an agent on both sides of the deal and is a much larger subject I’ll reserve for another day. However, there are companies that specialize in tenant or buyer reps. As a service provider seeking relationships with us, all of these elements are important to understand.
So, how are we paid? Full commission, no salaries or bonuses and only when we transact.
Yes, we can spend days, weeks, months or years on initiatives that never pay us. Unlike those with salaries or hourly service providers…
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