Commercial real estate (CRE) involves dealing with properties used for business purposes rather than personal living.
People working in commercial real estate typically handle buying, selling, leasing, managing, or investing in properties like office buildings, retail spaces, warehouses, industrial complexes, hotels, and multifamily apartment buildings. Here’s a breakdown of common roles and activities in CRE:
1. Brokerage / Sales
- Helping clients buy, sell, or lease commercial properties.
- Marketing properties to potential tenants or investors.
- Negotiating lease terms or sale prices.
- Advising clients on market trends, property value, and investment potential.
2. Property Management
- Overseeing daily operations of commercial properties.
- Handling tenant relations, maintenance, and rent collection.
- Ensuring compliance with local laws and safety regulations.
- Managing budgets and optimizing property profitability.
Related: What is the difference between real estate and commercial property?
3. Development
- Identifying land or properties suitable for new construction or redevelopment.
- Coordinating with architects, contractors, and city planning departments.
- Securing financing and managing construction projects.
- Ensuring the development meets market demands and regulations.
4. Investment / Asset Management
- Buying properties as long-term investments or part of a portfolio.
- Analyzing financial performance, ROI, and market trends.
- Making decisions on property improvements, refinancing, or selling.
- Working for REITs (Real Estate Investment Trusts), private equity firms, or individual investors.
5. Financing / Lending
- Structuring loans or mortgages for commercial property purchases.
- Evaluating risk, creditworthiness, and property value.
- Working with banks, private lenders, or investors.
6. Leasing / Tenant Representation
- Representing tenants in finding suitable commercial spaces.
- Negotiating leases, renewals, and rent terms.
- Advising on location, amenities, and lease structure.
In short, working in commercial real estate can involve sales, management, investment, development, or financing, and usually requires strong knowledge of finance, markets, law, and negotiation.