Start a franchise business with a focus on commercial real estate.

After explosive growth, the traditional real estate market is starting to slow down due to rising interest rates. If you're going to be in this area, consider investing in commercial real estate.

Commercial real estate: what you need to know.

While the major real estate exhibition MAPIC in Cannes will take place at the very end of November 2023, the Franchise Union invites you to get to know the features of commercial real estate and the franchisees who have chosen this field to develop their business.

Analysis of the commercial real estate sector

In the first quarter of 2022, the commercial real estate market (offices, retail, logistics) in France declined by 12% year-on-year to €4.7 billion.

The trade and logistics sector nevertheless partially covered the significant decline in the office sector (-45% year-on-year), which is experiencing a stagnant period.

The trade market is recovering. If we compare the data from the first quarter of 2021, when there was almost zero investment (200 million euros), this year's investment amounted to 1.2 billion euros, that is, 26% of all investments in the French real estate market.

Although the market has suffered some losses, it is worth noting that several deals concluded at the beginning of the year were planned months in advance. Approximately half of the investment in the first quarter was in shopping centers.

All in all, 2022 turned out to be a good year for retail, despite inflation!

The commercial real estate listings portal SeLoger Bureaux & Commerces reported that commercial lease offers rose 11% over the past year (data as of the end of November 2022). The commercial real estate market is increasingly buyer-centric, to the detriment of sellers.

Franchises in commercial real estate

Definition

A commercial real estate franchise allows you to have multiple real estate agencies represented by one company. The franchisor and franchisee, the two parties to the franchise, are bound by a contract that specifies the terms and conditions set by the franchisor and to be followed by the franchisee. This cooperation contract, also known as a franchise agreement or commercial agreement, gives the franchisee the right to use the franchisor's brand and know-how.

It should be noted that the number of real estate franchises is increasing, and there is a significant difference between traditional real estate and commercial real estate: the type of leases and the way the properties are valued are different for commercial space and residential real estate.

Conditions for opening your own franchise

• Own the necessary skills: a good understanding of the market and knowledge of real estate business techniques.
• Have a professional card issued to estate agents so that they can legally carry out their activities and prove their skills, including to clients.

It is worth noting that a professional card gives the right to carry out real estate transactions, management, sale, purchase...

An agreement on civil liability.

Have a financial guarantee.

The benefits of creating a commercial real estate franchise.

Establishing a commercial real estate franchise offers many advantages over setting up a conventional real estateagency:

• The commercial real estate industry is attractive and dynamic.
• Brand awareness and market position can give you an edge.
• Benefit from the support of a network of agents, experts, real estate agents, their knowledge and know-how, especially in the legal aspect.
• Shorter time to set up a business: start-up assistance, staff training, franchisor support...
• The fees that can be obtained are significantly higher compared to a regular real estate franchise. Investing in commercial real estate provides up to twice the return.

There are two cases: a network of franchisees without a separate office and a network of real estate agencies with an office.

Brands recruiting specialists in this field

La Résidence is a modern real estateagency network that works actively with clients on the sale and purchase of real estate, as well as rental management. The brand offers a variety of products and services designed for interaction.

Fee: €0,
Free franchise, limited to €4,000 VAT.

Prestige By Arthurimmo.com is a national network of real estate agencies in luxury. The brand makes a double commitment to its clients: a real estate agent and a licensed real estate expert.

Franchise fee: €30,000,
Franchise fee: €0,
Total costs: €20,000 to €50,000.

Hoquet Business is a division of Guy Hoquet L'immobilier, a renowned company specializing in neighborhood store and commercial real estate transactions. It was launched in 2023 and is a new business model that assists sellers and buyers in store and commercial real estate transactions.

Equity contribution: €80,000,
Total costs: €150,000.

Discover brands to start a business in commercial real estate.

HOQUET BUSINESS - Brand specialized in supporting professionals in store and commercial real estate transactions.
Equity: 80,000 euros.

La Résidence is a client-oriented real estateagency network.
No initial contribution.

In the shadow of traditional real estate, commercial real estate presents a good opportunity for entrepreneurs with a commercial nature. So, if you meet these requirements, why not start your own business.

You may also be interested in downloading for free the latest edition of The Franchise Handbook, which explains franchising step by step and gives you the keys to success in your project.