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What does a commercial real es...


What does a commercial real estate agent do?

commercial real estate agent
The Silicon Review
20 December, 2023

A commercial real estate agent is an expert in property leasing, management, and sales, providing advice on acquiring, enhancing, or investing in real estate or other commercial assets. This includes all aspects of retail property sales, leasing, management, investment, and enhancement of various property types, including farmland, businesses, industries, and medical facilities.

The role involves working with industry leaders, community leaders, government officials, lawyers, zoning officers, accountants, mortgage companies, banks, title companies, appraisers, and utility companies to develop properties and sell them to clients. While you cannot make decisions on behalf of clients, you can provide them with more information, such as determining the best use for a property or the most suitable investment vehicle.

This role involves working with property owners, users, and investors to determine the best use, location, and tax implications of properties. Property owners may sell, lease, manage, or determine the best use for the property. Users will find the best location for their business or investment, while investors will determine the best real estate venture to meet their specific goals and needs.

Who do commercial real estate agents do business with?

The commercial real estate agent jobs center around working with various stakeholders, organizations, and individuals to maximize the potential of real estate. They specialize in various areas, such as office space, farmland development, and theme parks. Other associates work for utility companies, insurance firms, and real estate investment trusts. Others work in specialist fields like resort management or support governmental organizations in land reclamation and industrial site restoration.

Responsibilities of a commercial real estate agent or broker

What does a commercial real estate agent do

As a professional in commercial real estate, your duties as well as the commercial real estate agent job description consist of the following:

For sellers

  • Hold or sell analysis: The market analysis helps property owners decide whether to hold onto their property or sell it, considering cash flow projections and the internal rate of return.
  • Property management: The role involves managing daily real estate investment situations, including leasing and suggesting ways to increase property value, particularly in a multi-tenant office building with a central common atrium.
  • Property leasing: The task involves identifying suitable tenants for a property owner's commercial real estate and suggesting strategies to establish a niche and attract long-term, stable tenants.
  • Property sale or marketing: The goal is to determine the most effective strategy to maximize a property's sales price and secure the most suitable buyer.

For buyers

  • Investment analysis: This involves comparing different property types and their cash flows or investment returns to help investors or buyers determine the best situation for their needs.
  • Site selection: An agent assists in locating a suitable site for a client, assisting with demographic data, zoning regulations, environmental conditions, and financing considerations.
  • Cash flow analysis and return on investment: Agents offer analyses and projections of possible returns on the property as well as possible future income. 

For both sellers and buyers

  • Property or business valuations: Property owners seek buyer value, the highest sales or lease prices, fair prices, and the best investments in the current market.
  • Feasibility studies: A market study, involving real estate appraisers and engineers, is conducted to determine the optimal use of a property and predict the success of a project.
  • Exchange opportunities: The tax benefits associated with property exchanges, such as 1031 deferred exchanges, may make them advantageous.

How to become a commercial real estate broker?

What does a commercial real estate agent do

Here's how to become a commercial real estate agent and begin a career in the industry. Firstly, earn a real estate license through local schools or colleges, with specialized courses in commercial or industrial real estate. However, college degrees are optional because they are not always required.

Brokers require one to three years of experience, a commercial broker license, advanced classes, and continuing education to become successful agents, with ongoing professional development.

How is commercial real estate different from residential real estate?

Places where people live, whether they are owner-occupied or rented to renters, are classified as residential real estate. Certain real estate is used for residential purposes, but there are other types as well. Hotels, student accommodation, and apartment complexes with more than four units are all classified as commercial real estate.

Locations where people conduct business make up commercial real estate. A corner fast food restaurant or bank branch is examples of owner-occupied property. Other types of property include multi-tenant retail centers and properties rented to commercial tenants.

Classifying the various categories of commercial real estate can be effectively achieved by considering the term "commerce."

There are significant distinctions when it comes to commercial real estate agent vs residential real estate agent, each with their own advantages and disadvantages. Although there is no absolute superiority, most investors find residential rental property to be more accessible and cost-effective than commercial.


Commercial real estate agents who uphold ethical standards and do high-quality work are eligible for rewards. Acquiring knowledge of the essential techniques and resources is essential for the prosperity of the practitioner and their clientele.

A successful career as a commercial real estate agent is possible, but it won't happen overnight. In order to locate the best commercial properties for sale or rent, successful brokers are highly versed in the industries in which their customers operate, in addition to being specialists in market and financial analysis.


What is commercial real estate business?

Commercial real estate encompasses various properties used for business activities, such as hospitals, assembly plants, storage warehouses, shopping centers, and office spaces.

What is a commercial real estate agent salary?

A commercial real estate agent in Los Angeles, CA earns $155,700 per annum.

Understanding the role of a commercial real estate agent?

Commercial agents mediate disputes between buyers and sellers, often working for complex transactions like asset sales or large-volume item acquisitions or sales.

What makes a good commercial real estate broker?

Some of the best brokers in commercial real estate are independent, driven, and don't require direction.