Real Estate

Confused buying commercial real estate.

  • Last Updated:
  • Aug 17th, 2017 9:49 am
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
After reading through your second post, I find you to be the type who already knows more than anyone else so probably best you look around the Internet some more and probe forum boards for guidance because clearly, as you pointed out, why would you pay for something you can do on your own? I would have offered to assist but no worries, you'll find out how to move forward better by this approach (you know...asking for advice and then telling the pro's that you don't need their help) lol

Oh, except there is likely a lot of technical things you don't know about. Good luck, can't wait to see how (if) this even plays out in the real world. Seems more like a troll post to me, to be quite honest.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
Deal Addict
Jul 3, 2011
4198 posts
1474 upvotes
Thornhill
I agree.

Net leases

Net net leases

Net net leases with a percentage of sales.

Cap rate/ ROI

Bulk Sales Act

Franchises/ franchise fees/franchise guarantees

First rights of refusal

Landlord right to relocate

Ownership of fixtures

immediate terminate for contractual breach

Business valuation - assets versus liabilities

Share categories

Condominums/freehold/co-operative

separate bolting

common elements rent

GST/HST application

etc..

They may think they're equipped to handle a transaction on their own or even learn about it, in the end they're ovrwhelmed and asking umpteen questions of the listing Realtor to explain this that and the other.
loriblum wrote:
Aug 11th, 2017 2:22 pm
After reading through your second post, I find you to be the type who already knows more than anyone else so probably best you look around the Internet some more and probe forum boards for guidance because clearly, as you pointed out, why would you pay for something you can do on your own? I would have offered to assist but no worries, you'll find out how to move forward better by this approach (you know...asking for advice and then telling the pro's that you don't need their help) lol

Oh, except there is likely a lot of technical things you don't know about. Good luck, can't wait to see how (if) this even plays out in the real world. Seems more like a troll post to me, to be quite honest.
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
Exactly!

And as the listing agent, how much time will I devote to assisting the person who clearly is ill-prepared and will likely cause strain on MY client? Nil. Because my onus is to provide the best service to MY client. In order to do so, I can't sit there and be the one to babysit the other side as 1) itaks a conflict of interest and 2) 95% of the time this other person who knows nothing will walk.

If the OP is smart enough to educate him/herself with all of the necessary terminology, the legalities, the allowances and to be ready to prepare the required documentation (ie Commercial APS, Amendments, Waivers, Fulfilments, Notices to the other parties, plans, permits, business license, ESA reports, etc.... the list goes on and on and on....), then I see no reason for him not to pursue this endeavour. Well, except for the obvious.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
[OP]
Newbie
Aug 8, 2017
3 posts
1 upvote
Nobody knows everything. I was hoping maybe one of you well-informed and knowledgeable real estate folks would point me towards some educational material. You learned, so I can too. Surely you have access to some basic reading, like from the two year real estate agent program at college that separates such wise people as yourselves from noobs like me. Perhaps you can share some course material instead of telling me I shouldn't bother learning. It's not like it's lifelong pursuit.

How else am I to know which agents are good or not? I am an intelligent young man capable of understanding if given the resources.

I am new. I admit it. But I'm not looking for a realtor, or sarcasm. I'm a year off from needing one. I'm asking for help getting started learning about all this so in a year when I am able to buy something I have a better idea what I'm doing.

Thank you for listing those terms. Although the intent was condescending, I can now define the ones I don't know as a starting place.
Jr. Member
May 9, 2017
121 posts
137 upvotes
Kurttt wrote:
Aug 12th, 2017 8:21 am
Nobody knows everything. I was hoping maybe one of you well-informed and knowledgeable real estate folks would point me towards some educational material. You learned, so I can too. Surely you have access to some basic reading, like from the two year real estate agent program at college that separates such wise people as yourselves from noobs like me. Perhaps you can share some course material instead of telling me I shouldn't bother learning. It's not like it's lifelong pursuit.

How else am I to know which agents are good or not? I am an intelligent young man capable of understanding if given the resources.

I am new. I admit it. But I'm not looking for a realtor, or sarcasm. I'm a year off from needing one. I'm asking for help getting started learning about all this so in a year when I am able to buy something I have a better idea what I'm doing.

Thank you for listing those terms. Although the intent was condescending, I can now define the ones I don't know as a starting place.
https://www.amazon.ca/Accounting-Strate ... 0470677732
Discusses legal and tax issues. Not specific to commercial but recommended on the issues mentioned.
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
Don't insult my industry and profession for starters and then perhaps I'd be more apt to assisting you. But your tone is what set you up for the secondary comment(s) so it shouldn't really come as a shock. Playing the victim after you bash someone is not cool. Being honest and upfront about your needs and asking serious questions with specific topics in mind will get you much further than the basic request you initially made. Food for thought.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
Deal Addict
Dec 5, 2015
1297 posts
412 upvotes
Thornhill, ON
loriblum wrote:
Aug 10th, 2017 9:18 am
So we agree? I said that it takes an experienced commercial Realtor to provide the level of service and competence that is required in such a transaction.

I work in large scale commercial sales and I still encounter issues, including different regulations for different regions. It is not up to just the salesperson but the person who is making the application to be knowledgeable on all fronts AND to be aligned with the proper manpower and colleagues in all other departments. Even then we run into issues (ie secondary phase EA reports for soil contamination).

I stand by saying that the OP should hire a skilled Realtor. Along with this person should be a skilled lawyer, a skilled EA firm, etc....
Are CBRE or Cushman Wakefield etc Realtors? They don't don't consider themselves as Realtors from my work with them .

But for commercial or investment real estate , definitely work with a consultant be it CBRE/Cushman and if required and during due diligence planning consultant etc as well
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
I'm not sure I understand the question.

When I was working under Cushman and Wakefield (formerly BLJC and RLP Commercial) we were a brokerage. There are different areas of specialization within the firm so perhaps you were working with a different team? CBRE is Caldwell Banker Richard Ellis, fwiw.

Wikipedia can spell out all of the different services provided (including, but not limited, to real estate brokerage services).
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
Newbie
Aug 10, 2017
71 posts
26 upvotes
In order to be a realtor in Ontario you need to pass 3 courses with a 75%.
These courses are at a Grade 10 level.
This is why many posters will say 90% of realtors are crap.
The bar is set very low.
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
The same argument can made for electricians and many other licensed professionals whether it be a service or a trade. But that's a ridiculous argument. I don't quite care if my car salesman has a grade 10 level science course under his belt, but if he is knowledgeable and passionate about selling cars and is equipped and ready to go with his arguments and can offer fact-based advice that I don't need to spend my time researching then this is the person I want to align myself with. It does take a lot more than "just 3 courses" to be a successful Realtor. Don't discount all of us as the same breed because you (general you) were burned by a fast-talker in the past. Surprisingly, many of us have a lot to offer that could shock the hell out of you.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
Newbie
Aug 10, 2017
71 posts
26 upvotes
loriblum wrote:
Aug 12th, 2017 11:23 am
The same argument can made for electricians and many other licensed professionals whether it be a service or a trade. But that's a ridiculous argument. I don't quite care if my car salesman has a grade 10 level science course under his belt, but if he is knowledgeable and passionate about selling cars and is equipped and ready to go with his arguments and can offer fact-based advice that I don't need to spend my time researching then this is the person I want to align myself with. It does take a lot more than "just 3 courses" to be a successful Realtor. Don't discount all of us as the same breed because you (general you) were burned by a fast-talker in the past. Surprisingly, many of us have a lot to offer that could shock the hell out of you.

Yes it does take more than just 3 courses to be a successful Realtor. You have to be able to win popularity contests. Whoever is most popular will make more money.
A big aspect of real estate is building and construction. Most of these agents don't have a clue.
Jr. Member
May 9, 2017
121 posts
137 upvotes
cdndeal wrote:
Aug 12th, 2017 11:28 am
Yes it does take more than just 3 courses to be a successful Realtor. You have to be able to win popularity contests. Whoever is most popular will make more money.
A big aspect of real estate is building and construction. Most of these agents don't have a clue.
Don't use one then or find a good one.
The real estate agent I used last is an engineer, used to be a builder and knew the area I bought and sold in inside out.
Deal Addict
Dec 21, 2010
1071 posts
282 upvotes
GTA
Then you didn't do your homework. Like the previous poster, I have a degree in Urban and Regional Planning (that's just one of my degrees), I began my career in Commercial Real Estate, I own and operate a large commercial and residential portfolio including full developments, factories, and land developments. My knowledge extends further than just owning the "popularity vote" and I am happy and willing to share my knowledge when asked.

So although many folks can obtain the credentials to call themselves a Realtor (or other professional designation for sake of this argument), the reality is that you (general you) must do your homework when selecting your service provider.

Pretty basic concept.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
Deal Addict
Feb 2, 2014
3590 posts
615 upvotes
Toronto
Kurttt wrote:
Aug 12th, 2017 8:21 am
Nobody knows everything. I was hoping maybe one of you well-informed and knowledgeable real estate folks would point me towards some educational material. You learned, so I can too. Surely you have access to some basic reading, like from the two year real estate agent program at college that separates such wise people as yourselves from noobs like me. Perhaps you can share some course material instead of telling me I shouldn't bother learning. It's not like it's lifelong pursuit.

How else am I to know which agents are good or not? I am an intelligent young man capable of understanding if given the resources.

I am new. I admit it. But I'm not looking for a realtor, or sarcasm. I'm a year off from needing one. I'm asking for help getting started learning about all this so in a year when I am able to buy something I have a better idea what I'm doing.

Thank you for listing those terms. Although the intent was condescending, I can now define the ones I don't know as a starting place.
Kurt, you need to decide what you want to do....

It sounds like you're on the fence on running a business or being a landlord.

If you want to run your gaming business, maybe you should lease a spot first.

If you want to be a landlord, then you can start the process of buying a commercial spot.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Newbie
Jul 21, 2013
19 posts
3 upvotes
Vaughan
loriblum wrote:
Aug 10th, 2017 4:37 pm
Did you begin your search by using 9 residential realtors? If so, the onus should be on you, the consumer, to have done better research. It really isn't that difficult to figure out who specializes in what (ie you wouldn't go to a car dealership if you're shopping around for a boat, would you!?)

So if you are saying that you had experienced 9 realtors who lacked the necessary skillset of what you were looking for then perhaps the problem did not lie with the Realtors? Just a hunch.
I wish... if I had used residential agents I would have learned my lesson after #3 or 4... In our case, in 7 out of the 10 cases, we were approached by the agents that insisted they were the best. The first agent, we had dealt with in leasing the office space we had but he was incompetent as a buyers agent and wanted to focus more on his 'residential' business so we went on a tangent on our own contacting spaces we liked to see. That's how the 7 approached us. The 9th person we worked with (from what we learned) had at most 3-4 successful commercial transactions and all 3-4 were mechanical shops or store fronts... Waste of time when you're looking at high end office spaces.
You'd think having a listing gives

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