Is commercial the next big thing for residential real estate businesses?

Is commercial the next big thing for residential real estate businesses?

More and more residential agencies are turning to the commercial real estate sector, according to a network.

The LJ Hooker Group reports a 25% increase in the number of its agencies expanding into the commercial space with a commercial license.

According to the network, these outfits not only aim to encompass all of their customers’ needs, but they also seek to expand their revenue opportunities.

Daniel Alexander, director of LJ Hooker Southern Gold Coast, said it was one such business that introduced a commercial property division in the past two years and admitted: ‘It didn’t bother me. really struck how different commercial real estate was until we went to the lender to buy the rent, and they asked what we intended to do with the commercial properties (on the roll).

“There are a lot of management requirements that are different from residential, so it comes with a different kind of risk.”

Today, he knows that the key to cross-divisional success is employing industry experts.

In response to this, LJ Hooker Commercial Southern Gold Coast now employs six commercial staff and has tripled the size of its portfolio. The arrival of Brett Gleeson, a former chartered accountant with KPMG, who is currently Mr. Alexander’s business partner, has been a central part of the office’s growth strategy.

Together, the pair introduced a commerce-specific CRM and invested in commerce marketing subscriptions before acquiring two local commerce specialists – Greg Watson and Tara Imlach – who lead the team.

Discussing the benefits of entering the commercial space, Mr Alexander explained how, since the brand has “customers who dabble in both residential and commercial”, it has facilitated their ability to maintain relationships. with clients for all their real estate needs, a crucial factor in being able to “serve clients for all their investment and divestment needs”.

He explained how “once you show a residential agent what it involves, like preparing an information notice, researching caveats and regulatory requirements, they quickly see that it’s is a very different proposition, and he is happy to hand it over to one of our sales agents and receive a recommendation”.

The Gold Coast outfit has been responsible for some major deals in the area since its inception, including the $6.2 million sale of the Man on the Bike neighborhood mall in Tallebudgera and the $4 million sale of the neighborhood The Collective retail store in Palm Beach.

Stephen Mutton, Managing Director of LJ Hooker Network – Australia, explained how, with the growing diversification in popularity as a business structure, the brand has seen “an increase in the number of residential managers adding a business license”.

He expects the interest to continue: “We expect greater growth in commercial property in the future, especially as the SME market benefits from the reintroduction of skilled workers to Australia.”

Is commercial the next big thing for residential real estate businesses?

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Last update: October 13, 2022

Posted: October 13, 2022

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