REAL ESTATE TIP: CHOOSING THE RIGHT COMMERCIAL REAL ESTATE BROKER
Would you buy a car from a boat deal? Let your barber clean your teeth? Perform your own surgery? Of course you wouldn’t. You want the people who you work with to be professionals and experts in what they do. So why would you go into the commercial real estate market without professional help?
Commercial real estate brokers are trained and licensed professionals. They all have geographic expertise, specific real estate product knowledge, and different negotiating styles. When you are ready to go out and find property to lease, buy, sell, or invest in, your best bet is to interview a number of brokers to find the best fit for you.
Here are some questions you should ask real estate professionals to clearly understand if they can add value to your situation:
- What product type do you specialize in?
- What is the geographic area you focus in?
- How long have you worked on this type of transaction?
- Can you tell me about another client with similar needs that you helped in the past?
- Do you work alone or with a team?
- What is your communication style?
Do your homework and make sure you have a broker who knows the type of space you are looking for inside and out.
“Isn’t it cheaper to lease or buy space on my own?”
People always ask me “Isn’t it cheaper to lease or buy space on my own?” No, is the answer most of the time. Any broker you interview should be open and transparent with how they will collect their fee. The industry has a standard commission for each product type, so make sure the brokers you are interviewing all tell you the same thing. Typically, the broker commission is paid by the landlord or seller when leasing or buying an owner/user building. In addition, your trained professional will help you avoid pitfalls. These could include; paying over market rents, getting locked into a larger term than you want, and even having to pay to build-out new space yourself.
Do yourself a favor and let a professional help you with your space needs. It will save you time, worry, and in the end, MONEY.