April 25, 2019 01:45 AM
From leasing office space, to land acquisition, the terrain of commercial real estate can be quite rocky to navigate alone. Whether holding or investing in commercial real estate, one is required to make many considerations during a commercial real estate transaction that necessitate the guidance of an experienced advisor. With the abundance of investors jumping into the commercial real estate market, an equally abundant pool of commercial advisors have emerged offering to broker the perfect deal.
Choosing the right advisor to handle your transaction will play a significant role in your bottom line regardless of which side of the transaction you are on. The purpose of this article is to help even a novice in the world of commercial real estate, narrow their search to find the best advisor to handle their deal. Here are five characteristics to look for in a commercial real estate broker along with some important questions to ask when interviewing potential advisors to determine their proficiency in each area.#1 – Experience in Commercial Transactions
Is your ‘commercial broker’ a residential real estate agent moonlighting in the commercial industry? When interviewing potential brokers, be sure to find out which percentage of overall transactions handled by your broker are represented by commercial deals. Look for a broker who specializes in and works exclusively with commercial real estate as it is important for them to be familiar with the intricacies of marketing and selling/leasing a commercial property. When evaluating a true commercial broker, find out if they have access to all the commercial property databases and the latest comparable sales and leasing transactions data. This information is pertinent to not only negotiating a deal that is most profitable for you, but also to expedite that process.
#2 – An Innovative Marketing Plan Designed for the Commercial Real Estate Market
Does the broker you are interviewing have a marketing plan that is geared towards commercial real estate? The following questions will help you determine just how effective your potential broker’s marketing efforts will be on your behalf:
- Does your potential broker subscribe to the various commercial real estate databases and commercial real estate marketing platform’s, such as Catylist and LoopNet?
- On how many websites will your property be published?
- Does your potential broker have a professional, cohesive, signage and brochure program?
#3 – A Collaborative Co-Brokerage Approach to Commercial Real Estate
Does your Commercial Agent participate with other agents and share commissions or do they try to horde the listing in an effort to collect both sides of the commission? Many national brokerage organizations do not co-broke commission or try to encourage outside brokerage participation. In fact, most commercial real estate brokerages discourage other brokers from bringing buyers or tenants to the deal.
#4 – Specialized Training & Experience In Applicable Property Type And Location
It is common, in smaller markets for commercial brokers to have to handle all types of commercial real estate transactions just to make a living. However, in some larger brokerages, each agent has a product specialty and/or market area that they know better than anyone else in the industry. When interviewing potential brokers, be sure to select a specialist to handle your property. It does not cost you any more to use a broker with expertise in your specific property type and location, however it is likely to cost you on your bottom line if you do not.