Are you considering hiring a CRE broker?
Perhaps you find yourself needing a larger space for your growing business. Maybe you want to take advantage of the great interest rates available on commercial real estate loans and purchase a CRE investment property to strengthen your portfolio.
Whatever your need, whether you’re a small business owner or an investor, your goal is the same: secure the best value available and negotiate the optimum terms to lease, purchase or sell. You want to minimize risks and expenses and maximize your return.
So you tell yourself, “Hey, I’m smart and successful. I’ll save some money and do this on my own. No problem.”
Given today’s challenging economy and constantly changing real estate landscape, the sobering reality is that hiring a commercial real estate agent or broker is your best bet against losing thousands of dollars you’d likely spend by making potentially costly mistakes or missing out on solid investment opportunities.
A commercial real estate professional does far more than place a sign on a property and advertise it in the newspaper. A good one will have the right training to impart helpful research, advisory and transaction services so that your commercial real estate venture goes smoothly.
Ultimately, they may help you mitigate numerous problems, challenges and stress that could prevent you from realizing the outcomes you seek.
But just in case you still need more convincing, the following are 9 of the most critical reasons you should partner with a professional, licensed commercial real estate agent or broker.
1 | Cost Savings
Not surprisingly, the most common reason people don’t utilize the services of a commercial real estate broker is to save money. Yet the vast majority of commercial real estate transactions are handled by professional brokerage firms. Why? Whether buying, selling or leasing, savvy business owners and executives understand the lucrative cost savings that can be achieved through time management, successful negotiations, and proper deal structuring and market knowledge that only an experienced commercial real estate broker can provide.
2 | Time Management
Business owners and managers have their hands full running their company, so time management is critical. By partnering with an experienced broker, you can maintain your focus on your business while benefiting from the guidance of a specialist who will help you quantify your needs and secure successful outcomes.
3 | Experience
As in sports, repetition is the key to honing skills and achieving success in business. Nothing can replace years of hands on experience. There is certainly a wealth of information available to you about commercial real estate, whether online or in print. But understanding how to navigate complex due diligence processes or how to structure advantageous lease or purchase terms, for example, may be challenging for most. A seasoned commercial real estate broker who has facilitated numerous transactions from beginning to end is likely to be the best resource to ensure your success.
4 | Data & Systems
Professional commercial real estate brokers give you access to the best commercial real estate information available, providing you with the latest sales price data, vacancy and absorption rates and comparative tax and labor costs to help you make the most informed decisions. Experienced commercial brokers also have established systems to facilitate complex processes and eliminate unnecessary costs. These systems, combined with years of accumulated data, are available to you via the commercial broker to assist you in the transaction process. The result is an efficient, cost effective method of securing your real estate requirement on the most beneficial terms to you.
5 | Market Knowledge
In every industry, market conditions and trends are constantly changing and opportunities are found and lost on a daily basis. Successful brokers will have the timely market knowledge to be able to give you a straightforward competitive analysis of different commercial properties that fit your purpose and budget. They will know what similar properties in the area recently leased or sold and for how much, as well as how long it took to make the deals. Savvy brokers also have their fingers on the pulse of current demographics and market indicators from other industries that impact commercial real estate. Ultimately this information helps them anticipate opportunities, gain competitive advantage and implement the best approach on your behalf.
6 | Marketing & Contacts
One of the most important parts of a commercial broker’s business is marketing. Because of this, brokers and brokerage firms typically have a comprehensive range of tools at their disposal to reach qualified buyers, sellers, landlords and tenants. Marketing on your own can be an expensive proposition, but most brokers can leverage the resources available from their firms to provide economical, efficient marketing solutions.
In addition, well-established brokers and firms have spent years cultivating a proprietary list of contacts, from investors to landlords and tenants. Knowing who is in the market to purchase, sell or lease and having the inside track to reach them is invaluable and can ensure you satisfy your commercial real estate needs in a timely manner to take advantage of the best financial conditions.
7 | Negotiation
You’re successful in what you do, and you probably fancy yourself a savvy negotiator. That may very well be, but the art of negotiating in a specific industry is honed over years of transactions in that industry. Successful negotiation of a commercial real estate transaction can be very stressful and often time consuming.
A commercial real estate broker will act as your advocate in lease and sales negotiations, utilizing their experience to relieve you of that stress by acting as a buffer, and freeing up your time to focus on your daily business. Furthermore, many are not sophisticated negotiators, and a broker will be able to make sure the playing field is level.
8 | Deal Structure
Every real estate transaction is unique in how it’s put together, and proper structuring can save a client thousands of dollars. One example deals with proper structuring of “Base Year” in leases for building operating expenses. Compounding these costs over a five year term can either be costly or provide savings to the tenant depending on the negotiated structure of the lease terms.
9 | Integrated Services
An experienced commercial broker will be able to provide a client with integrated services relative to their real estate requirement. Securing qualified service providers such as legal and accounting services, for example, can be a time consuming and costly process added on to the stress of the real estate transaction.
For More Commercial Real Estate Information
To learn more about commercial brokerage solutions or to speak to a qualified representative today, please contact Radius Commercial Real Estate directly.
Download “9 Benefits of Hiring a Commercial Real Estate Broker”
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