I am a residential real estate Broker in New York. I've sold a few commercial properties (although I was met with resistence) and get clients from time to time looking for commercial listings but I find it difficult to help them as the commercial real estate industry is like this secret society. Certain companies will only work with other commercial real estate brokers, Websites ALL require passwords and paid memberships and half of those websites are inaccurate on multiple levels. WHat is the point of this? Wouldn't it be easier to just make this information readily available to all??? Wouldn't more deals be done? If joe wanted to buy a space fr his clothing store wouldn't it get done quicker if all he did was type in commercial real estate for sale and 30 free websites popped up??? I just struggle to see the point.
This happen in New York all the time. Those agents are nuts.
It's an extremely competitive business. Basically, there are too many commercial RE firms trying for a piece of the pie, and not enough pie. It's silly, much of it is counterproductive, and it's New York. Good luck with that.
It isn't secretive, it is just completely different from residential real estate. Generally speaking, residential agents have no business thinking that they know enough about the commercial side of things to represent someone. There is a ton of stuff that applies to commercial real estate that residential brokers are never exposed to and trying to work with a residential broker is frustrating because they don't understand a lot of what is going on. Would you use a commercial broker to sell your house for you? Of course not.
Commercial real estate agents do not have the same protections of listings and the clout to require an owner to pay them commissions. A special law was passed in Florida in an attempt to require the payment of commissions when agreed upon. Often listings are pocket listings and there is only a verbal agreement that such and such a business owner wants to sell. The commercial agent works in an entirely different world than the residential agent. Commercial agents are often reluctant to work with residential agents because they know they will have to work both sides of the transaction. The complexity of the deal, the pricing, the use of attorneys and much more take months to get the transaction close to closing. There are also a lot specialties in this type of real estate so one agent may specialize in gas stations and another in commercial land. Remember also that often a business is for sale but not the real estate or the real estate is for sale but not the business. If you want to work in commercial real estate then work with a commercial broker who will teach you the business. The earnings can be huge but you need to know a lot. As a former real estate agent who sold a few small commercial listings I well know I am not up to speed for the big transactions.
