What is agency in commercial real estate?

Agency in commercial real estate refers to the principles and legal framework that govern the relationship between agents and their clients in transactions involving commercial properties. This includes the fiduciary duties agents owe to their clients, such as loyalty, disclosure, and care, which are essential in commercial property dealings. These interactions often involve complex transactions where financial stakes are high, making it vital for agents to have a thorough understanding of the applicable laws and regulations.

The focus on commercial properties distinguishes this concept from residential real estate, where the dynamics and regulatory principles can vary significantly. In commercial transactions, agents also play a crucial role in negotiations, marketing, and providing insights into market conditions, which are unique to the commercial sector.