Does SPiRALNY specialize in residential and commercial real estate?
Whether you have years of experience as a real estate agent or are just starting out in the industry, you may be wondering what type of real estate you should specialize in- residential or commercial.
Both residential and commercial real estate both present potential pros and cons for an agent’s career and have different qualifications to succeed. In addition, one type of real estate may work better for one agent over another based on their experience and personal characteristics.
This guide will highlight the differences between residential and commercial real estate and help you choose which is right for your career.
What is the difference between residential and commercial real estate?
Residential real estate refers to properties that are built for people to live on. Commercial real estate refers to properties that are used as workspaces or for businesses purposes. This can include anything from gas stations to retail strip malls to office buildings.
While it differs in every city, and even in specific neighborhoods and blocks, typically, there are local zoning ordinances that prohibit residential spaces from being used for commercial real estate, and vice versa.
If you are a residential real estate, this means that you will help clients either buy, sell, or rent a home. On the other hand, if you are a commercial real estate agent, you will either help tenants find a commercial space or help landlords lease or sell their space.
Benefits of Working In Residential Real Estate
One major thing that differentiates commercial real estate from residential is that residential real estate focuses on the day-to-day lives of everyday people. As a result, specializing in residential real estate is a great option for agents that skilled in taking a more hands-on approach with clients and understanding their needs on a personal level.
As a residential real estate agent, you will need to understand what type of area your client wants to live in. This means you will need to be well versed in local school districts, dining, entertainment, attractions, and amenities.
One benefit of working in residential real estate is that there is a higher turnover rate, as people tend to buy or rent new homes much more frequently than businesses change location.
Further, there is a significantly higher number of people looking to buy, sell, or rent a home than there are businesses looking for new space. This means that residential real estate presents a larger market of clientele to work with.
Benefits of Working In Commercial Real Estate
Commercial real estate varies greatly from residential real estate in that it requires the agent to focus on how properties can increase their client’s profitability, whether they are a landlord or a business leasing the space. As a result, specializing in commercial real estate is a great option for agents that are skilled in analyzing data, statistics, and properties’ history and potential revenue.
Working as a commercial real estate agent requires a strong understanding of the market as a whole so it is advantageous for commercial agents to have at least a few years of experience in real estate before they enter the commercial field. It may even be beneficial for an agent looking to enter the commercial real estate field to have a background in finance or economics.
A major benefit of working in commercial real estate is that commercial properties are often higher-priced and as a result, generate greater commission. Although commercial properties tend to have a much lower turnover rate than residential, successful commercial real estate agents still have the potential to earn far more than their residential counterparts.
What type of real estate do SPiRALNY agents specialize in?
At SPiRALNY, we want our agents to feel passionate and well-versed in whatever sect of real estate they choose so agents have the option to specialize in either residential or commercial real estate.
As earlier mentioned, it is a good idea for agents to have experience in residential real estate before they enter the commercial real estate field, so our training programs place a larger focus on teaching the basics of residential real estate.
However, our firm’s Principal Broker, Marcel Bellucci, has experience in both residential and commercial real estate and is happy to help agents along the way in either field.
Which type of real estate should I specialize in?
The decision to specialize in either residential or commercial real estate is a decision each agent must make on their own. When choosing between the two, consider these questions:
- Do you enjoy working hands-on with my clients and helping them find the perfect home or do you prefer to keep it more professional and help businesses find a space that will impact their revenue?
- Do you enjoy learning about an area in terms of its market and profitability or do you enjoy learning about the benefits it offers its residents?
- Are you just starting out the industry and still learning the ropes or do you have a few years of real estate experience and are looking for a new challenge?
At SPiRALNY, we’re always here to help our agents work through this decision and help them discover which field of real estate will be best for their careers. If you are looking for a new brokerage to call home or are interested in learning more about SPiRALNY, reach out to us.