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Badger Peabody & Smith Blog

November
7

Commercial Sales vs. Business Brokerage | Badger Peabody & Smith RealtyProperty sellers may believe that business brokerage is just another synonym for a commercial real estate agent. While the names may seem like synonyms, they serve different purposes and their distinctions are clear.

If you are selling a property that has been used for commercial purposes and is intended to be used for commercial purposes in the future, a real estate agent specializing in commercial sales is who you should consult for help.

However, if you are selling the entire business, as a complete operating entity, you might benefit from a company that offers business brokerage to aid you throughout the sales process of the company.

Here are some of the main differences between commercial sales and business brokers: As a primary focus, a commercial real estate agent sells, leases, and manages the physical property of the company. It could be a warehouse, office building, retail shop, or even undeveloped land. Meanwhile, a business brokerage would focus on processing the sale of the entire business, from operations and assets to client base and brand.

Many aspects of the sales process and approaches are different from one to the other. While commercial real estate agents usually have public listings, business brokerages may maintain strict confidentiality depending on the direction of the client. Marketing may be completed through different approaches as well.

Even valuation is done differently between the two. In commercial sales, the property is assessed based on market comparisons, property condition, and location. On the other hand, a business broker assesses the company value after conducting a deep financial analysis of the company's profitability, cash flow, inventory, and assets.

If you're looking to sell a commercial property, a REALTOR® with commercial expertise can help you with the sale by using the marketing strategies they have perfected over time. They will understand the economic trends that impact the commercial real estate market in your area and all aspects connected to your property for sale.

A savvy commercial sales agent will help you develop the best long-term strategies for the specific outcomes you seek. They do this on a daily basis, and they've seen it all. In addition, an experienced commercial real estate agent will know how to value a property effectively and take into account many factors like location, features, and more. They may take some approaches to value your property, including a comparative market approach, a cost approach, and an income approach.

An agent who specializes in commercial real estate can help you navigate the transaction. Whether you're selling a retail shop, a warehouse, a restaurant, or commercial land, their expertise will guide you through a challenging time.

Courtney Edgar is a lifestyle journalist and copywriter based in Montreal. Her work has been published in Huff Post, Pop Sugar, Atlas Obscura, Explore Mag, and more.

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