Intro to Commercial Real Estate

Many elements of commercial real estate differ from residential transactions. It’s critical to know these differences if you are primarily a residential agent and have infrequent commercial transactions.

This course will give you the basic tools to determine if the commercial side of real estate is right for you and give you the skills to build a strong real estate business with exceptional customer service that is compelling to the customer and compliant with our ethical standards.

On the commercial side of real estate, the investor tends to be more knowledgeable and sophisticated but there is no guarantee that all your commercial customers will be sophisticated buyers. There is still the chance this deal is this customer’s first ever. Therefore, we must be ready, willing and able to give them all the support they need. The ability to explain the commercial contract, LOI, and other forms that may come into play during the transaction are important skills for any agent working with commercial customers to have.

Learning Objectives

• Describe some of the primary differences between the commercial customer and the residential customer.
• Explain the difference in the due diligence period with commercial real estate.
• List some common differences between commercial and residential leases that the customer should be made aware of.
• Explain the importance of attorney involvement in the commercial transaction.
• Describe what a typical Commercial investor/customer expects from a real estate professional based on their experience.
• Explain the terms GPI, Vacancy Factor, and GOI to a customer.
• Demonstrate how to use the five main keys on the financial calculator (N, I/YR, PV, PMT, FV).
• Calculate the net operating income of a potential commercial property using the above given factors.
• Create a to-do list of due diligence when working with a commercial buyer.
• Explain what special inspections a lender may want/require.