Why Should You Hire a Commercial Real Estate Broker?

In today’s economic climate and the rising real estate markets, you may ask yourself what most commercial real estate owners eventually are faced with...why Should I list my property with a broker? The most common deterrent in employing a real estate broker is the commission. In some cases and depending on the value of your property the commission can be quite substantial. I believe there is common misconception that brokers get paid a high commission for relatively limited or no work effort. Here are the reasons you may want to reconsider bringing on a commercial real estate broker on your team.

First and most value add is a real estate professional is a fiduciary which means he/she must put your interest first and foremost above any other including themselves. Meaning even if a strategic move means less commission for them, but is better for the client that is what a broker must advise their client.

Subject Matter Specialists

Commercial real estate brokers are trained, competent professionals and they have gone through a substantial training, continuing education and must be aware of the laws regulated by your state for the transaction of real property assets. A worthy commercial real estate broker will know the markets relating to your property and the local area and what properties where they are trading. There is also a difference in the general, overarching real estate market and the specific markets for your specific asset class i.e. office vs. industrial vs. retail, etc. No disrespect to residential agents, but they are professionals in what they do. The difference between commercial and residential property are vast and frankly hiring the professional that is ill prepared could not only prevent you from selling or leasing your property, but can also turn you off to utilizing the services of a real estate professional. A residential agent understands the details of residential contracts, sales and renting negotiations and the closing process. on the other hand, a commercial real estate broker understands the valuation process of commercial real estate property, which is completely different from residential sales and leasing. The showing techniques and process are quite different additionally the closing process in vastly different. If you have a resident or up to a four unit multi-familial dwelling consult a residential agent. Alternatively, if you have commercial property, I highly recommend you petition the assistance of a commercial real estate broker.

Let the Professional Do the Heavy Lifting for You.

What the essential value real estate brokers bring to the table is time. We give you you’re precious time back to do more productive things that enhance your life. A good real estate broker will remove the headache of leasing or selling your commercial property, especially if you have more than one property. Some of the value added benefits you may not realize that comes with employing a commercial real estate broker:

Marketing-there are so many methods of marketing and getting your property in front of the masses is no different. A good broker will utilize all the tools at their disposal to properly market your property. This includes standard listing services like CoStar, Loopnet, Crexi the MLS, etc. If we expand further there are print, email, digital, social media marketing and many other methods to advertising to the local markets your property is available for lease/sale.?

Showings-Nothing depletes resources like time, energy and fuel like showings. In most cases you cannot sell or lease a space without the potential buyer/tenant viewing the space, area, neighborhood, etc. A good broker will be present at every showing, not only to ensure the client’s property is in well maintained and in show ready condition, but to get a feel for the buyer/tenant. No one will know your property like your broker, that’s why a good broker will be at every showing within reason. This saves you drive time, the time it takes to show the property (which can be hours), fuel and wear & tear on your vehicle.

Negotiations-A good broker will be an artisan of the deal, a professional negotiator. I know what you are probably thinking “I didn’t get where I am because I don’t know negotiations” or “How do you think I bought this property?” However, a good broker can negotiate with poise and finesse, but also knows intricacies and laws that only a qualified real estate professional would know and can be an advantage during negotiations. A good negotiator looks at the big picture and is a good “out of the box” thinker.

Interfacing with Others-Another time savings is the interfacing with other professionals during a lease negotiation or closing process. A good real estate professional knows how to interface and balance outcomes with other professionals such as attorneys, engineers, inspectors, appraisers, etc. Your broker should schedule all appointments, provide requested documents and evidence, be present at all inspections, surveys, appraisals, etc. and be available to answer any questions that may arise during the process.?

Ancillary Benefits

Beyond being a fiduciary a good commercial real estate professional, in my opinion should have a fair amount of real world business experience. Your broker should have the knowledge and experience of putting successful deals together. You do not want to hire a broker that has never negotiated and closed a deal (real estate or not). It is crucial that your broker would understand the situation you are in and can give you advise not just with real estate, but what your real estate options are and how they may affect your business, family and most of all your life. A good commercial real estate broker should have a list of service providers, professionals, product specialists that he/she knows, trusts and have worked with for some time. Your commercial real estate broker should be your ally to help achieve your goals in a timely and streamlined manner.?

What most people do not understand is, your real estate professional is so much more that just a person who submits offers and shows space. A good real estate professional is someone who works hard to get your needs accomplished and will continue to build a relationship with you. Our goal is to become invaluable to you so you can checkoff real estate on your list of things to worry about.