Unpacking the Differences Between Residential and Commercial Real Estate with Chanda Chann

The Entrepreneurial Agent

In this podcast interview, commercial real estate agent Chanda Chann explains the difference between commercial and residential real estate. Chann explains that the residential side of real estate deals with personal space, where people live and raise families. On the other hand, the commercial side of real estate is all about investment and making a return on that investment.

Chann goes on to explain that there are different classes of commercial real estate, such as high-rise office buildings and retail spaces. The commercial side of real estate deals with businesses that want to operate as an owner-user or investor. Chann emphasizes that commercial real estate is more involved and time-consuming than residential real estate, and the due diligence process can take up to 180 days.

One of the main differences between residential and commercial real estate is the way properties are marketed. Residential properties are usually listed on third-party websites like Zillow or Realtor.com, while commercial properties are not. Instead, commercial real estate agents have access to a commercial MLS, which is not available to the public. Chann explains that commercial real estate agents can search for properties based on specific criteria and provide clients with a curated list of properties that meet their needs.

Chann also discusses the decision to lease or buy commercial real estate. The decision often comes down to the financial strength of the client, as landlords usually require three years of financial statements to ensure that the tenant is viable. Chann notes that landlords want reliable, responsible, and good-paying tenants to ensure that their properties are successful.

Chann further explains that the minimum term for commercial leases is typically three years, and tenants often take the space as-is. If tenants want to make changes, the landlord may offer a selection of materials to choose from, such as different colors for walls or flooring materials.

Finally, Chann discusses the negotiation process in commercial real estate. Unlike residential real estate, commercial real estate negotiations often involve more complex contracts and legal language. Chann emphasizes the importance of having a commercial real estate agent who can help clients navigate the negotiation process and ensure that their interests are protected.

In summary, Chann provides valuable insights into the world of commercial real estate, emphasizing the differences between residential and commercial real estate, marketing strategies, the decision to lease or buy, and the negotiation process. She highlights the importance of having a professional commercial real estate agent to help clients navigate this complex industry and make informed decisions.

Connect with Chanda Chann

Visit her website: https://chandachann.com

Social handles: @chandachann

Meet the Host:

Paul Neal is the founder and Principal Funding Strategist at Vantage Point Commercial Capital, a firm that focuses on helping entrepreneurs, businesses, and real estate investors win by funding their growth and dreams in nontraditional ways.

Paul’s unique perspective has been honed over 30 years as an entrepreneur, financial strategist, professional speaker, and executive coach. He took the road less traveled choosing to leave engineering right out of college to become a serial entrepreneur. From great early successes in the 90s and 2000s, to completely losing his primary business in the Great Recession of 2008, to bouncing back and just recently selling another business for a healthy 7-figure sum…he’s experienced it all. Paul offers a wealth of experience and passion to the entrepreneurial community in an engaging, upbeat, encouraging, and witty way. He can carry the conversation easily wherever it goes, and your guests will remain engaged and will walk away with valuable and practical insight and advice.

Connect with Paul:

Visit his website: https://paulneal.net

Connect with him on LinkedIn: https://www.linkedin.com/in/paul-neal-47b8478

Vantage Point Residential: https://vantagepointresidential.com

Vantage Point Commercial Capital: https://vpc.capital