Commercial Real Estate vs. Business Brokerage
Many people mislead the definition of "Commercial Real Estate" associating it with the sale of business such as a restaurant, a hair salon, etc.
The business brokerage is a subdivision of the commercial activity within the field of Commercial Real Estate. In fact a business transactions may include or not the "Improved Property".
The field of commercial real estate comprehends the following categories (leasing and sale):
Retail - Shopping Centers
Office Buildings
Industrial (Warehouses)
Multifamily
Hospitality
Special Properties (Marinas, TV Studios, etc)
Businesses (including or not the real estate)
Some people have also a wrong concept about the compensation for the broker in a real estate transaction, indicating that the standard is 10%. Again this is a typical commission for the sale of a business but it is far from reality in a commercial improved property transaction. The compensation in commercial real estate transactions varies depending on the type of transaction and the amount of the sale, but it never reaches the levels of 10%.
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