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How do you select the best commercial real estate broker? We have identified the top traits a broker should have before you choose them as your real estate agent.
As a commercial property owner, investor or a business owner, you are potentially about to take a huge leap into the unknown. Before you do, it is important to get a good commercial real estate professional on your side who can navigate the way and the best deal possible for you. There are a few key traits we have identified that are the most important when choosing the right broker.
The number one complaint we hear from people looking for a better commercial real estate broker is that their current broker is unresponsive. Perhaps they listed your property and it’s been months since you heard anything. Or maybe you are actively searching for that perfect, ideal property and they rarely contact you or seem to be actively looking on your behalf. The first thing you want to do is identify a firm or an agent with a reputation for personal communication, transparency, and someone that will answer your phone calls and work diligently on your behalf.
Whether selling or buying property, you will need a market expert. Selling, you will need to have it priced aggressively but not too aggressive so that it would not deter buyers but bring the maximum value for the asset. In order to do this, you must have an intimate understanding of the market. Buying, you are going to need enough market data and the expertise of someone who knows the market and understands it in order to find and get the best deal possible. It could be you will need comparables, rent comps, demographics information or all the above, to bring you a full investment analysis.
Of utmost importance is a skilled negotiator on your side of the table who can work to get you the best deal. Whether that means getting top dollar for the property you are listing for sale or the best terms possible on a lease you are negotiating for your business, your agent should be highly skilled at navigating the terms, the offers and know how to get you the best deal out there.Â
A good broker should understand the market and investment trends and be able to point you in the right direction as far as which properties are most profitable and will provide you with a full investment analysis. The five main types of commercial real estate are office, retail, industrial, multi-family and special purpose. Does your broker understand which type of property will provide the maximum return, which area of the market promises the most growth, and basically, have they done their own research, and do they understand your goals and objectives so they can match what you want, appropriately advise you and get you in the best situation possible for your portfolio? Do they know the ins and outs and pay close attention to tenant type, mixes, contracts – whether residential or an urban center would be the best fit for you, and more… They should understand how to make proper valuations, understand the financial intricacies of commercial real estate investing and perform due diligence on your behalf to learn as much about a property as possible before recommending it or selling it. They should also be in touch with a property management firm to help you with the next steps of managing your property should this be part of the deal – or preferably, have a property management department in-house.
Marketing a commercial property includes performing a great deal of research, and then putting together the best presentation of your property possible. This can include aerial photos, inside-out photos, a property website, visible signage, flyers and above all, a commanding digital presence to get your property attention. You should always ask how they plan to market the property and do your due diligence by exploring their website and social media as well as major third-party sites, to ensure the broker you choose is utilizing all available and the most recent tools on the market to get a property noticed. Does your broker have a marketing team behind them performing all of the above? If not, you might want to start looking into other options.
What can separate a good broker from a great broker is their level of knowledge across the board. Are they only proficient in one tiny sector of the realm of commercial real estate – or do they understand a myriad of property types and investment trends across the gamut to be able to help you with your investment strategy from planning, all the way through execution? A great broker understands the full array of commercial properties, from office to land, and will be able to help you navigate the path today and tomorrow with any investment type you are ready to make and explore.
A good agent first and foremost always has the client’s best interests at the forefront of everything they do. This means fiduciary responsibility and a desire not only to close a deal, but to make sure it’s the best deal possible for you and be honest and transparent enough to communicate when it isn’t. Be sure to choose a firm with high marks in integrity, who are customer-focused and have great reviews for always being on their client’s side.
Last, but certainly not least, if you are looking to choose a commercial broker, check out reviews and get referrals. What are their past clients saying? Do you know anyone who could refer you to someone they have worked with on prior deals and had a good experience? Ask what the broker’s strong points were, their weak points, whether they would use them again.
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