“What’s the commission?”

A haunting phrase for CRE brokers everywhere. If you’ve been in CRE for longer than five minutes, you’ve gotten this call:

And just like that, the flashbacks begin…not because you’re hiding the commission, but because you already know what’s likely coming next…and it’s not comps.

It’s handholding…Lots of motherf*cking handholding. 

Why This Meme Hits So Hard

This meme isn’t just funny, it’s a shared experience across the entire CRE brokerage community because when a residential agent calls about a commercial listing and leads with the commission, 9 times out of 10, you already know how this movie ends.

You’re about to walk them through:

All while pretending you’re totally fine with it.

Spoiler: You’re not.

The Real Pain Point

The issue isn’t that they’re asking about commission; It’s the pattern and knowing their client is about to get subpar representation simply because their agent didn’t realize there are real estate professionals who only do commercial.

Too often, CRE brokers end up doing double duty, representing the building, and carrying the residential agent through the entire process because they’re in over their head.

You wind up quarterbacking a deal that should’ve been clean and praying it doesn’t fall apart halfway through. All because someone didn’t know what questions to ask.

The Referral Double Standard

Let’s keep it real: most of us in CRE wouldn’t touch a residential deal with a ten-foot pole unless we’re buying our own house. We refer it out to a trusted pro in the residential market, take the referral fee, and go on with our day. But the flip side?

A surprising number of residential agents see a 1,200 SF office lease and think,

Answer: Harder than it looks — especially if your client wants to open a med spa in an industrial park.

It’s not that commercial is harder than residential, but just like in residential, there’s a ton of nuance to every deal, and every asset type. If you’re not familiar with it, it can feel like drinking from a fire hose. Instead of referring it out, they try to “figure it out” and in doing so, risk costing their client time, money, and credibility.

To Be Fair…

Not all residential agents are guilty of this. Some get it, they ask smart questions, defer to the CRE pro, and genuinely want to learn.

Those folks? We’re happy to work with them any day. Total pros.

This is especially common in smaller markets, where firms handle both residential and commercial under the same roof, and when that’s the case? Great! We respect it.

But for the rest?

If your client needs commercial space, and you’ve never done a CRE deal in your life, just refer it out. We’ll take care of them. We’ll keep you in the loop, and you’ll still get paid.

Don’t do it because us CRE folks prefer it that way, do it because it’s the right thing to do for your client who’s trusting you with their livelihood and hard-earned money.

That’s all for now! I appreciate everyone who’s been part of this community across all the different social media platforms. My goal with this newsletter is to dive deeper into various aspects of the CRE industry, with a focus on the brokerage side. I aim to bring the same levity and reality to these insights as I’ve done with the memes.

If you have any input, feedback, or questions, feel free to reach out. The DMs, emails, and real-life connections have been some of the coolest experiences along this journey.

-CapRateCraig

What we’re reading & listening to this week: