06/17/2026
Residential agents are leaving commercial opportunities too early.
Not always because the deal is too complex.
Sometimes because they assume “commercial” automatically means “refer it out.”
And yes — there are deals that absolutely need a specialist.
A 200-unit apartment complex, a regional retail center, or a complicated sale-leaseback is not something to handle casually.
But that is not usually what comes up first.
Most residential agents are more likely to hear about:
• A 2-to-4 unit property
• A small office space
• A mixed-use building
• A small retail space
• A local investor opportunity
These are the kinds of commercial conversations that can come from people already in your sphere.
The problem is that many agents immediately step out of the room.
They say:
“That’s not my area. Let me connect you with someone else.”
That can feel professional.
But it can also transfer the relationship.
The commercial specialist becomes the person your client calls for the next investment conversation. Then the next one. Then the one after that.
Your client may still like and trust you.
But they no longer see you as part of that side of their real estate life.
The better approach is not to pretend you are a commercial expert.
It is to learn enough to stay in the conversation.
Start with the basics:
• Cap rate
• DCR
• Operating expenses
• Total operating income
These four numbers can help you ask better questions, understand whether a deal makes sense, and know when the right specialist should be brought in.
That is the real goal.
Not to replace specialists.
Not to overstep.
Not to fake expertise.
But to stay valuable to your client when the conversation expands beyond residential.
Before you refer out the next commercial opportunity, pause and ask:
“Is this truly outside my ability to help, or do I just need a better framework?”
If you want to understand the commercial basics without overcomplicating it, start with Commercial Real Estate Made Simple.
It was built to help residential agents learn the language, numbers, and deal mechanics they need to stay in the room.
Comment “COMMERCIAL” and I’ll send you the details.
Michael Johnson
DRE: 00886898
P (310) 968-6583
E [email protected]
W www.mike-realtor.com
