First, let me state that I have no knowledge of commercial real estate, and never really wanted to. Usually when I get a commercial lead, I refer it to someone in our commercial division. I KNOW I AM IN OVER MY HEAD - so keep those comments to yourself.

I have a client who I am helping purchase a home in Tennessee. Currently, he manages a tattoo parlor/ head shop. His boss wants him to open a franchise of the business when he gets moved in to his new home. His boss is a wealthy man and will be covering all start up costs.

I tried to get my client to let me refer him to a commercial pro, but he won't let me. He is very shy and introverted, and distrust full of real estate agents in general, but he likes me. He knows that I have no commercial experience but insists that I still help him. He has no problem being a learning experience for me. He is not hard to please and will 'for sure' be opening up shop here, I'm confident I won't be waisting my time.

He wants 1000 square feet and is willing to sign up to a 10 year lease. His budget is $1600 per month for lease payment. He knows the general area where he wants to set up shop. His boss has all the knowledge of required permits for a tattoo shop and I can help him with city ordinances with the retail head shop aspect. The only interior work required for his tattoo shop is hot and cold water available at each tattoo booth.

There are agents in my office that will help me access the commercial MLS.

Can anyone here offer any advice as to what I'm up against or any particularly "sticky" situations I should watch out for? I don't even know how I get paid on something like this. This could be a great source of residential referral business for me, so I want to do it right (within my limitations, of course).

Thanks in advance!

I'm not into commercial stuff either. But, have you thought about instead of refering your client out, actually asking an agent in your office for assistance throughout the process, and giving them a referal % that way?

No, I haven't considered that, but I will now.

Partner with the commercial agent and split it 50/50. Is the client looking to buy or lease? If lease then the commission will not be that much. Use this as a learning experience. As a side benefit that commercial agent will be likely to refer the next residential buyer to you.