When I started in commercial Real Estate, I was only 20.  I wore collared shirts and cardigan sweaters all the time.  I styled my hair conservatively, and aligned my fashion with the goal of looking older.

According to a recent study, the average age of commercial real estate agents is 56.  I am now 30 years of age (this figure will be amended mid December to 31 years of age).

I have nothing against older people.  In fact, many of my clients are older and I think that they are far superior to me in many ways.  The problem with “older agents" in the commercial real estate industry is the inability -- or more so, unwillingness -- to adapt to today’s technology and ways of doing business.  In the internet age, where the web, search engines, cameras, computer software, etc, all change every month, my clients are expecting that I'm on top of this stuff.  

I’ve seen it all across Alberta, and all across Canada.

Problems with being old

    * They still think “good ol' boy clubs” are cool; they are sadly mistaken. You know the ones where they get together and conspire to keep all the information under lock and key.  They are reluctant to put this information on the web.
    * They believe real estate should be bankers' hours: Monday-Friday and 9-5. How does this help the consumer who drives into town on a short notice and is thinking about relocating and only has the weekend to look for properties?
    * From my dealings, the average phone call is returned withing 4-6 days and that’s being generous.
    * They still send faxes and courier large documents.

When I was in university, I worked for one of these large commercial real estate firms.  The guys who really did well have my complete and utter respect.  I think that they are true businessmen, and they deserve the high commissions they command.

But when I was just out of university, eager to conquer the world, I would ask why commercial real estate isn't organized like residential real estate is, they would scoff and say, "Why should it be…? We aren't selling doll houses, we're selling custom solutions."  They would say "MLS is a tool for taxi drivers and housewives," apparently using a derogatory slang to refer to residential agents. My response was essentially that our clients want the convenience of browsing the same database that we do.  

The reason I think it has taken the commercial real estate firms so long to put their properties on the web is that it wasn't a convenience for them… it was only a convenience for their competitors and their clients.  Now that customers are starting to look online, and buy commercial real estate from the MLS agents, the big commercial real estate houses are starting to take notice.  And I think they might be a bit worried.  They don’t know how to use resources to market property.

In 2010, 98% of our customers researched property on the internet before they called us.  If I was a building owner and my broker didn't have my property well displayed on the web, this would be worrisome. Many commercial properties are not listed in MLS resources for other agents to find, therefore the property goes unnoticed.

Of course these are just my observations from every day dealings up until now.

Below is a list of things your agent needs to write an offer for you.  Email them, and the process will be much smoother.

1. The name or entity of the party that is purchasing the property.  It might be

-Bob Sheddy (a person)
-Bob Sheddy or Nominee (An entity that is buying for another entity)
-Sheddy Commercial Investments Ltd. (an incorporated company)
-1122334 Alberta Ltd.  (a numbered company)

It is best to discuss the ownership with your accountant before you make the offer.  If you haven't, then it might be prudent to put the offer in one person's name "or Nominee" and then discuss with your accountant at a further date.  

2. For commercial property, you'll want to have the GST number of the entity that is purchasing the property on hand.  If you don't currently have a GST number, your accountant can help you get one.  You can still make the offer, with the goal of getting the GST number before the deal closes.

3. Then you must come up with an appropriate down payment amount.  Most standard offers allow for the downpayment to be refundable during the condition period.  Because the deposit is refundable it doesn't really matter how much you put up during the due diligence period.  Once conditions are waived, most sellers would like to see 5-10% of the purchase price held in trust.  

4. The amount you want to offer.  Keep in mind that most accepted offers are within 5-10 percent of the asking price.  A good agent won't list property if it is extremely overpriced.  They should also be able to justify the price for you with appraisals and/or comparable solds.

5. Your agent will need your mailing address that you want on title, your cell phone and your email address.  This will be put on the offer, and this is how your REALTOR and your lawyer will contact you.

6. You then need to look at a Calendar and decide how much time you need for your due diligence and financing conditions, and what day you would like to take possession.  My Lawyer, Colin Kloot, of Herman, Kloot & Company www.drumhellerlaw.com recommends the best days to have for the condition and possession days are Tuesdays, Wednesdays or Thursdays.  These days allow the lawyers and legal assistants the most flexibility, and the deals seem to be completed with fewer hiccups if they are planned for these days.  

7. Your agent then needs to know your lawyer's name, Law Firm, Mailing and email addresses, phone and fax numbers.  You can usually google the lawyer's name for this information.


Once the offer is drafted, you can go through the offer, line by line, and add any additional items in pen on the offer.  By going through the 7 steps above, you are simplifying the process, and making a nice clean canvas to start the offer on.

Congratulations, you are well on your way to purchasing your next investment!