5 ways commercial and residential real estate can work together now

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Not all brokerages are created equal, and not all brokerages have a commercial department. However, those who do will find that it offers opportunities for powerful synergies.

Commercial real estate is a completely different beast and I have always admired the vision and expertise of commercial brokers. They have the unique ability to see potential in underutilized assets and work tirelessly to find the right buyer or tenant for the property. Their knowledge of 1031 exchanges and ability to handle complex transactions further sets them apart.

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When working with clients (whether they are business owners or individuals within your sphere of influence), the need for commercial space or the desire to sell a business often arises.

As residential agents, we tend to stick to the markets and property types we know. However, ensuring the best results for our clients sometimes means stepping out of our comfort zone and working with commercial agents.

Working at eXp Realty gives me access to their dedicated business department. This was the first time in my career that I had such a resource, and it had a significant impact on the networking and opportunities that came with it.

Here I learned a lot about commercial real estate, including brokerage differences, market dynamics, and the ability to work across state lines.

Benefits for the Business Sector

There are various advantages to having a commercial department within a brokerage firm. First, it offers a wider range of services to customers. When a residential client expresses interest in investing in commercial real estate or needs space to conduct business, immediate access to commercial expertise can make all the difference. It ensures customers do not need to look elsewhere for comprehensive advice and services.

Second, it increases networking opportunities. Commercial and residential agents can cross-refer clients, collaborate on projects, and share insights that benefit both parties. This symbiotic relationship can lead to more transactions, increased customer satisfaction, and stronger market presence.

Third, entering the business sector can help with career development. Working alongside commercial experts, residential brokers can expand their knowledge base and understand different market dynamics, investment strategies and transaction complexities. This cross-pollination of expertise can make agents more versatile and valuable to clients.

5 needs for commercial real estate

Here are five ways to determine if your client or sphere of influence needs a commercial representation and strategies for starting the conversation:

1. Business ownership

If your client owns a business, they may have commercial real estate needs, such as leasing office space, purchasing a warehouse, or selling a business. Ask about their business operations and future plans to determine potential needs.

Here’s how to start a conversation: “I noticed that you own a business. Are you satisfied with your current business space, or are you considering making any changes in the near future?

2. Investment interest

Some clients may be interested in diversifying their investment portfolio through commercial real estate. Ask about their investment goals and suggest commercial real estate as a viable option.

Here’s how to start a conversation: “Have you considered adding commercial real estate to your investment portfolio? They can provide strong returns and diversification.

3. Expansion plan

Clients looking to expand their business may require new commercial space. Discuss their development plans and proactively connect them with commercial agents to help them find suitable properties.

Here’s how to start a conversation: “As your business continues to grow, do you anticipate needing additional space or a different type of commercial real estate?”

4. Relocation

Business owners moving to a new city or state will need assistance finding commercial space. Provide your business agent network to make their transition smoother.

Here’s how to start a conversation: “If you are considering relocating your business, I can introduce you to our commercial team who specialize in finding the perfect space in a new location.”

5. Recommend

Even if a customer doesn’t have a pressing need, they likely know someone who does. Promote your brokerage’s business capabilities to your circle of influence and encourage them to recommend others who might benefit.

Here’s how to start a conversation: “If you hear of anyone in need of commercial real estate services, please feel free to send them to me. We have a great team that can fill those needs.

Embrace synergy

By recognizing these opportunities and initiating conversations, residential agents can provide more comprehensive services and build valuable relationships with their commercial counterparts. The integration of commercial units not only expands the organization’s capabilities but also enhances the value it delivers to customers.

Embracing the synergies between commercial and residential real estate ensures we meet the needs of all our clients, ultimately leading to greater success for everyone involved.

Additionally, this synergy creates a more cohesive and integrated approach to real estate services. Customers benefit from a seamless experience where their residential and commercial needs are handled with the same level of expertise and care. This holistic approach can significantly increase customer satisfaction and loyalty.

The relationship between commercial and residential real estate within a brokerage is not only beneficial, it is critical. It enables agents to better serve clients, expand their professional horizons, and contribute to the overall growth and success of their brokerage. By embracing this relationship, you can unlock new opportunities and deliver exceptional value to your customers.