In Australia, the term "commercial real estate" covers both industrial and commercial real estate. Commercial real estate refers to retail shops and offices while industrial real estate generally refers to factories and warehouses.

If you have a commercial property to let – do you need an agent? What do they do for your money?

Collecting the rent is only part of the job. When you engage a specialist agent to manage your commercial and industrial property they do just that – they manage your property.

Management means a lot more than collecting the rent.

Leasing advice

• Advise on acceptable lease structures so that your investment retains its value and has growth built in.
• Ensure the lease structure suits your cash flow and capital needs.
• Negotiate lease terms with your tenants to ensure your property is enhanced by the lease, not devalued.
• Commercial real estate agents are trained to find and negotiate commercial real estate deals.

Tenant management

• Deal with your tenant in an expert, professional manner.
• Conduct credit and other financial checks.
• Deal professionally with tenants regarding any legal or contractual issues.

Property management

• Ensure your property is maintained in tip top condition.
• Deal professionally with tenants.
• Commercial real estate agents use their industry contacts to ensure good deals with tradesmen and service personnel.

Local and industry knowledge and experience

• Commercial real estate agents are familiar with every industrial space for lease or for sale in a particular area.
• They know how future developments will affect the property value and leasing rates.
• Their experience of handling numerous commercial real estate deals every month means they are prepared for every scenario.

What about the agents fees and charges?

Agents fees are generally not regulated and are negotiable in most states and territories.

Queensland has a set schedule of fees and the Real Estate Institue of Tasmania provides a recommended fee model. Check online for details of fees in your region.

However, it’s wise not to choose an agent based on fees alone. Check for professional experience – a successful investment is often the end result of a long process – and skills and expertise means more here than low fees. 

How to choose the right agent

Contact a number of commercial real estate agents in your area and ask about their expertise with the type of property you are interested in. Choose the one you feel the most comfortable with.

You can also contact the Real Estate Institute of Australia or the Institute in your state or territory for advice and assistance. Check online for contact details.

Need an agent for commercial real estate? Find one close to you, here.