The commercial and residential housing markets have seen some notable shifts in recent years, according to the real estate sector. For example, in 2021, small and private investment businesses accounted for approximately 3/4 of retail asset acquisitions, a 30% increase over the prior 10-year historical average.

Furthermore, a bidding war broke out earlier this year over a 140,000-square-foot shopping mall housed at Office Depot in Port Charlotte, Florida. Investors also bought retail buildings like Watters Creek in Texas, Galleria Edina in Minnesota, and Promenade at Carolina Reserve in South Carolina.

As a real estate agent, you want to know what this surge in commercial real estate purchases implies and how it may affect your business. In this post, we will look at the relevance of this trend as well as the opportunities it might provide for you as a real estate agent.

Why Are Private Investors Interested In Commercial Real Estate?

To understand the significance of this trend, first consider why there has been such an increase in commercial real estate investments. Because of changes in consumer behavior, private investors are shifting their focus to the retail sector. Many investors are interested in the increase in suburban shopping and open-air shopping facilities.

The pandemic has altered how businesses interact with their customers. Retail companies that navigated the early days of the pandemic and converted to an online approach are poised to succeed. Even with online shopping, many customers prefer to purchase in person. Many stores have begun to search for ways to expand, but many find themselves battling for limited square feet.

This has produced an environment in which some private investors have changed their focus to acquiring retail centers because they see higher yields and profits than other types of real estate.

What Does This Mean For You As A Real Estate Agent?

Working with private investors might help you diversify your portfolio and expand your business. Here are some advantages to dealing with investors:

Investors are constantly seeking opportunities to buy and sell. Private investors, unlike regular consumers who may search to buy a property every 5 to 10 years (or more), are always looking to acquire or sell homes. Being the go-to real estate agent for a private investor could give you consistent business in the long run.

In some ways, experienced investors may be easier to work with than residential clients. Most investors should know and grasp the practicalities of purchasing or selling properties because it is not their first rodeo. As a result, you can skip describing the basics of an offer and simply send them the paperwork to sign. Seasoned investors will even tell you their recommended process so you can follow along. Finally, when it comes to figures, they're willing to negotiate or accept your commission rates, helping the transaction move well for both parties.

Investors may become leads or recommendations. Working with private investors may provide you with more referrals or possible prospects in the future. Even if the investor no longer wishes to buy or sell, they may be able to suggest you to their network or direct potential clients your way. Find methods to stay connected and cultivate those relationships, because you never know which one will be the finest investment for your career.

Whether or not you've dealt with investors, continuing education classes are excellent resources for staying up to date on the newest real estate trends and updates.