Commercial Real Estate Brokers
Commercial real estate brokers in New York City operate by arranging and negotiating transactions for commercial property on behalf of buyers and sellers. Some commercial real estate broker's daily activities include a cold-calling program with the brokerage team, participation in client meetings and new business presentations and participation in property tours.
Key findings: Commercial Real Estate Brokers
- Commercial real estate agents sell or lease a commercial property which takes much longer than selling or leasing a residential property. They help clients sell and lease commercial properties, which requires analyzing large amounts of data and an understanding of the commercial real estate market.
- In addition, the commercial agent is expected to provide a vast amount of financial information and analytical data.
- A career in commercial real estate incorporates appraisal, finance and land development.
Activities of a commercial real estate brokers in New York
- They participate in cold-calling program with the brokerage team.
- They participate in client meetings and new business presentations, as required.
- Participate in property tours, as required.
- They contact and meet regularly with other real estate professionals including developers, appraisers, landlords, and brokers.
- Work with senior brokers to develop follow-up materials for clients.
- Provide clients with industry and market-specific information.
- Review and analyze client’s quantitative office location data, legal documents, and other materials.
- Commercial real estate agent’s salary is based on commission. A commercial agent usually retains a 3% fee on all sales and leasing transactions. The brokerage firm will likely receive 35% to 40% of that fee, which is typically paid 30 to 60 days after the deal is complete.
- Commercial deals can be extremely complex and time-consuming that takes six months to a year for the parties to settle on a sales price, secure funding, sign the paperwork, close escrow, and assume ownership.
- On the other hand, leasing transactions usually take less time, but you have to wait for the lessee to assume tenancy before receiving the full commission.
WHAT THEY DO TO STAY COMPETITIVE
- Commercial real estate broker must be proactive in managing clients' expectations of the challenges they may face when leasing space.
- Educate the clients on how that landlord operates and provide the tenant with backup options.
- Inform the client why a landlord might be motivated to delay their response.
- They are proactive that seek out leads and aren’t shy about introducing themselves at a networking event or during a cold call.
- Must be social, confident, trustworthy, patient, and persistent.
- Must have a well-maintained relationship with current and past clients, as loyal clients will not only retain their agents for future transactions but will refer them to others.
- Commercial real estate brokers must remain flexible to accommodate the client's schedule.
HOW THEY BRING CUSTOMERS AND LANDLORDS together
- Commercial real estate agent brings customers and landlords together by using the brokerage list with details of properties available to rent or buy from sellers, and specifications of what the buyer is looking for.
- When the landlord lists the available space with a broker who then goes out looking for tenants and when the lease is signed, the landlord pays the broker a commission—typically 3% or so of the rent paid over the life of the lease.
- The listing broker is the landlord’s agent and is duty-bound to work out a lease that’s as favorable as possible to the landlord.
- On the other hand, a broker who works exclusively for the tenant has one main assignment—to get a good deal on a space that meets the tenant’s needs—not to help the landlord quickly fill the building or get top dollar rent.
- Brokers who work for landlords and tenants are found to be the best as they cater for both sides and are less likely to have a conflict of interest.
We found some data pre-compiled on the internet but needed to broaden the research to obtain the full information needed. We first examined the previously submitted request and noted the focus needed to be on commercial real estate brokers. We then began examining different trusted sources that discussed how commercial real estate brokers operate. A thorough search was then done through trusted articles, media reports, and blogs such as Forbes, medium, thebalancesmb, nolo, and study. Research results yielded some helpful information but only a few sources were specific to New York with their day to day activities and how they stay competitive. The search was then broadened to not only focus on New York, but for the whole U.S. This yielded some helpful information about the incentives of a commercial real estate brokers and how they bring customers and landlords, and we were able to identify that the commercial real estate agent’s salary is based on commission and have shared our findings above.
We were unable to find any information for the incentives of commercial real estate brokers specific to New York and how they bring together customers and landlords. The only information that we were able to find is their day to day activities and how commercial real estate brokers stay competitive. Below is our strategies in finding the incentives and how they bring together customers and landlords specific to commercial real estate brokers in New York.
Firstly, we examined government sources such as the Bureau of Labor Statistics, specific to commercial real estate brokers in New York. We were hoping to find any information specific to incentives, and how they operate in New York, but unfortunately, this yielded no helpful results. The only information presented was the number of employment, unemployment, an hourly wage of real estate agents, but nothing specific to commercial real estate brokers.
Secondly, we then tried to look for parallel data points among surveys and polls conducted among commercial real estate agents in New York. The purpose was to look for indirect but relevant information that could be applied directly to the request criteria. We were hoping to find some information regarding how they bring customers and landlords together and their incentives. We searched through Forbes, nolo, and study, but unfortunately, this research only yielded information showing how commercial real estate brokers stay competitive. Other information found was related to the whole U.S. and not specific to New York.
Thirdly, we then triangulated an answer by examining some large commercial real estate services firm such as JLL, and Newmark Knight Frank. We were hoping to find information that could be used as a proxy on how commercial real estate agents operate specifically to New York. We examined how much the incentives of a commercial real estate broker are, and how they bring customers and landlords together, but unfortunately, the only information that we were able to find was the day to day activities of a commercial real estate agents in New York.
After an extensive search, we determined that there was only information specific to New York such as the activities of a commercial real estate broker and how they stay competitive. Even after broadening our research criteria to provide some helpful findings to other criteria such as their incentives and how they bring customers and landlords and focusing not only in New York but the whole U.S., we only found some helpful information.