In the 4th and final part of our What Residential Agents Should Know About CRE Deals series, Troy discusses what might be the most important thing you should know about being a commercial agent, understanding the market.
#4. Understand the Market
Understanding the commercial real estate market is of the utmost importance becasue it’s never the same, it continuoulsy changes over time. Take into considertaion the 3 topics we discussed above when you begin to learn and analyze the current market, especially the roles each asset class plays in the current market.
Each asset class plays a different role in the market and at times those roles can change and when they do so does the worth of your client’s investment.
Do your due diligence! Investigate and analyze the numbers; cap rates, NOI, past selling price, trends, do it all! Doing so will allow you and your client the ability to foresee the future – what you can anticipate from the market and the investment.
It’s important that you learn the differences between a residential transaction and a commercial transaction because believe it or not, they are different and the way you approach them should be different as well.