Commercial REALTORS® require ‘probing skills,’ expert says

Residential Realtors® changing to the commercial side of the business need to develop different skills, according to Gregory Schenk, a 2010 NAR REALTOR® Commercial Alliance Signature Series Speaker.

“People need better listening and probing skills,” Schenk said. “They need to be able to look at things from different angles. And most importantly, Realtors® need to understand that a deal can take an average of eight months to a year to close.”

Schenk will present “Residential to Commercial” on Tuesday, December 7 at Triple Play 2010 in Atlantic City.  The course gives an overview of the commercial real estate industry and helps Realtors® develop a strategy to expand into the commercial market.

“The commercial business is more complicated and it’s important to know what you’re doing,” he said. “Just because you have a real estate license doesn’t mean you should be selling commercial real estate. If you’re currently selling residential properties, it might help to team up with a commercial agent to learn about the market and understand how to best help your clients. Don’t hurt your own reputation or your company’s by making mistakes because you don’t understand the market.”

For example, Schenk said many commercial clients don’t plan their move early enough and don’t understand the cost of moving. It’s one of the top mistakes made.  “As their Realtor®, it’s important to help your client understand how much it will cost to move and put together a cost estimate list to help them plan for their move. They can save money if they’re proactive about their move,” Schenk said. He uses a five-page form with his clients to determine answers to determine where the business is and where the owners want to go with it.

As a commercial Realtor®, Schenk said it’s important to help clients recognize the amount of space they need for their business. “Many times, a business is using a place that was never adapted to their needs. It’s best to work with a space planner, who will save them time and money by getting the space they need and the space they’ll need for future growth,” Schenk said.

“Every commercial market is different,” he added. “We’ve seen a lot of changes in the commercial industry and many are seeing high vacancy rates right now. There’s a lot of opportunity in tenant representation, but investment sales will probably drag for a while because they’re having to put 30% down.”