This is my first blog in over three years. Lots have gone on with me as I am sure with you. A quick overview of where I am today:
I am currently the Director of Commercial Real Estate at Village Commercial based in Frankfort, Illinois. I am also a Director on MainStreet Organization of REALTORS™ Board. I continue to practice commercial real estate as I have since 2003. I work with businesses, investors and landlord throughout the Chicago-land market. Specializing in Office, Retail and Industrial.
This week I have launched a new campaign providing information to consumers, educating those in commercial real estate via a weekly YouTube videos. I will also follow up with a blog – as this one that recaps the video. The first video launching this new venture tackles the difference between commercial real estate and residential real estate.
The most obvious is houses are residential real estate and office, industrial and retail are commercial real estate. That is a very simplistic. An apartment building with less than 5 units is considered a residential transaction where 5 or more units is commercial. Land sales can be either, it depends on the zoning – it’s use.
The biggest differences between the two is the transaction itself.
Residential real estate is very personal. Families are seeking the best fit house that makes it feel like their home and they seek information on the neighborhood, schools, access to convenience and many other factors that are personal to each buyer and their family. The transaction time is usually 60-90 days from start to finish, obviously that is an estimate and could sway in either direction.
Commercial Real Estate transactions are less personal. The property needs to fit the company’s requirement regarding workforce, access to expressways, access to their customers and nearby restaurants and stores for their employees. While reviewing the options in the market location is key and then the space. Regarding the space, most can be modified to meet the company’s needs. These construction points are negotiated through the broker. With that said, that can make the transaction process very long. From start to finish it could be 6 months to 2 years depending on the situation.