Working in commercial real estate (CRE) can sometimes feel like being in the middle of big jigsaw puzzle. When all of the puzzle pieces are scattered on the table top, it’s difficult to see what goes where.
But, as you become more accustomed to the world of CRE, the big picture begins to emerge, until every piece falls into place and you have a complete image. The commercial real estate industry may be centered around properties and considerable sums of money, but it’s defined by the people that work in the field. Here are a few key players in real estate and what each of them do:
The Key Players In Real Estate – Who Does What
In the real estate industry, every player has their place. When working together as a team, each contributes to the big picture.
Sometimes that picture is a new mixed-use office development project, sometimes it’s converting traditional office suites to on-demand coworking office space. Other times the big picture can be leasing a vacant space or establishing a commercial lease insurance.
Different real estate projects have different team members. Below is a list of the 15 most common key players in real estate and how each member contributes to the success of the team.
Appraiser
Appraisers help determine the value of a property by analyzing comparables and preparing written reports used by real estate investors and lenders. Because property types are unique, real estate appraisers usually specialize in certain real estate asset classes such as land, residential, commercial, or special-use property. In commercial real estate, you may find appraisers specialized in further asset sub-classes such as multifamily, industrial or office.
Architect
Architects create a detailed building plan prior to construction and work with the general contractor to ensure the directions for the building plan are followed.
Attorney
Participates in many different real estate transactions and processes, including land acquisitions, zoning matters and contract review.
Civil Engineer
Civil engineers participate in all parts of the development or redevelopment process, from conception to completion. They provide a critical assessment of raw land use and identify the infrastructure needed to support the project.
Environmental Consultant
An environmental consultant analyzes a site’s physical limitations, conducts environmental impact studies such as Phase I and Phase II inspections, and assists in overseeing any needed remediation work to reduce environmental contamination to an acceptable level. Environmentally-conscious development is a centerpiece of today’s real estate environment.
General Contractor
Responsible for overseeing the construction of a project and providing all of the material, labor, and services needed to bring the project in on time and within budget. General contractors in real estate often work with subcontractors who specialize in different portions of the construction project such as electrical and plumbing installation, and heating, ventilation and air conditioning (HVAC) systems.
Landscape Architect
Designs functional and attractive public and private areas in and around the property. Architects specializing in landscape work also assist site developers with planning the locations of buildings in a multi-property development, locating streets and walkways, leading to overall more walkable cities.
Leasing Agent
Works hand-in-hand with the property management team and owner to maximize gross revenues by leasing to tenants that enhance the property’s image and position in the marketplace. Real estate agents specializing in leasing also play an important role in helping property owners achieve their investment objectives.
Lenders
Depending on the type of project, real estate lenders can be insurance companies and large private equity firms, traditional banks or hard money lenders, or mortgage brokers and mortgage bankers. Real estate lenders provide financing for new construction, bridge loans or gap loans as a development project progresses, and take-out financing with longer-term commercial real estate loans.
Market Consultants
They help investors determine the demand for a project and its economic feasibility by conducting a detailed analysis of current real estate market trends and anticipating future changes in the market.
Property Manager
A property manager handles day-to-day property issues and helps the owner reach their short-term and long-term real estate investment goals.
Real Estate Broker
Real estate brokers are involved in all stages of the real estate process including initial land acquisition, subdivided lot sales, and property acquisitions and sales.
Site Planner
Works in conjunction with architects, civil engineers, and environmental consultants in all project aspects such as zoning, ingress and egress, security and water drainage.
Surveyors
Working either privately or as part of a larger engineering firm, surveyors are responsible for identifying the boundaries of a property and preparing legal reports that are used by the architect, site planner, engineer and general contractor to construct the project.
Title Companies
Title companies ensure that a property title is legitimate and free of any liens or encumbrances before the title is transferred. Title and escrow companies also issue title insurance that protects the owner and its lender against any future lawsuits or claims over title to the property.
Each member in the commercial real estate community is an important force that keeps the wheels turning. However, there are also many tools that can assist a real estate expert in their practice. You can easily access nationwide data on commercial properties and also add CRE listings with CommercialEdge, the most advanced research, listing and advertising product in the commercial market.
