Experience working w a residential agent to buy/sell Commercial?

Question

Hi there,

I'm a commercial broker specializing in the purchase and sale of retail properties (single tenant properties and strip centers).

I have come across many investors who use their residential agent to help them buy commercial properties.  As a specialist, I wonder if the investors know that there are brokers who specialize in certain aspects of commercial real estate, or if they know, but would rather stay loyal to their agent, even if that agent doesn't understand commercial real estate very well.

Have any of you (as investors or brokers) had this experience?  Do you have any good or bad experiences in working with a residential agent to handle commercial, potentially gotten in trouble if the residential agent missed something?

Mike

Jade S. · Answer

I started to dip my toe into commercial a few years back with my residential guy who helped me build my SFH portfolio, but realized that he wasn't educated even as much as I was on the commercial "game".   They weren't aware of doing cap rate analyses on the market, nor did they fully understand pro formas.  But even bigger....lack of relationships with area commercial brokers.  Now I'm imbedded with a couple of commercial guys in my two markets of interest.

Joel Owens · Answer

Hey Mike,

I specialize in the same thing as a principal broker across the country.

My clients keep things separate. It's very clear after our initial phone call that the residential broker they use for SFR is not highly skilled as a specialist in the commercial retail asset class.

Once they see that it is easy for them to want to work with me.