Securing commercial real estate by lease or purchase can be a long and difficult process if you don’t have a qualified expert lending you a hand. There are several misconceptions about hiring a commercial broker, the main one being cost of services. Many brokers, including Investment Realty, do not charge hidden fees or upfront charges to tenants seeking space.
Several factors influence a business owner’s decision to avoid using a broker. Including control, broker fees, trust and the widespread availability of market information online. However, this process is often harder than it seems and can leave the business owner wasting valuable time.
There are five primary ways a broker can add value to your search:
1. Market Knowledge: Commercial Real Estate data that is up to date and current is harder to come by than most business owners may realize. You’ll need accurate information to give you the best idea of the current market rates. Brokers are well-connected and many agencies pay substantial costs to have access to this information in order to help their clients.
2. Multiple Resources: Strategic consulting, project management, marketing and a dedicated researcher are at your disposal when using a commercial broker. You’ll have access to a team of professionals that can service all aspects of the real estate transaction leaving you with virtually no headache.
3. Cost Saving: Commission is typically paid by the landlord or building owner. In most cases as the tenant or buyer you will not have to pay a fee to use a broker. Business owners typically forget that cost is associated with more than just price per square foot. That’s where a commercial agent comes in. Factors such as operating expenses, improvements, location, construction, heating and cooling capabilities are all aspects in which a specialized agent will have knowledge.
4. Experience: Commercial brokers, are not only experts in their field, but are also experts in their market. They have vast amounts of knowledge covering their surrounding area with some even going back decades. Wouldn’t you rather have someone who knows the market in which you plan to invest?
5. Save Time: In order to get the best deal, you’ll need to allocate precious time that could otherwise be spent running your business. Many factors need to be considered including compiling listings, scheduling tours and negotiating terms. However, this can be very difficult if you try to manage the process alone.
Hiring a broker can help save you time, money and ultimately get you the best deal on your real estate transaction. Whether its investment sales or purchases, asset management, tenant or landlord representation, a broker will be there to expertly guide you through the entire process.