Archive for February, 2010

Industrial Tenant’s- How to Choose the Best Commercial Real Estate Broker Advise

If your company is in the process of buying or leasing industrial real estate, it is important to choose a real estate professional that is well qualified to represent your best interests. A real estate broker has the market knowledge and negotiating expertise to help you make a well informed decision. Without the right real estate professional, the process can become cumbersome and expensive. To achieve optimal results in the buying process, follow these key points in choosing the real estate broker that is right for you.

Avoid Using the Same Broker

Just as the prospective landlords or sellers have a broker working for them with their best interests in mind, you need a broker that will protect your interests. Don’t fall into the trap of using the same broker who will most definitely have a conflict of interest. While the broker might say that they can save you time and money by negotiating for both parties, remember that their fiduciary responsibility is to the landlord. Additionally, dual agency laws require proper disclosure upfront and may limit a broker’s ability to advise either client in certain states. Choosing your own representation insures that your interests are fully represented by eliminating a possible dual agency scenario and gives you confidence that you have the same expertise on your side as the landlord or seller.

Choose a Tenant/Buyer Specialist

With expertise in tenant/buyer representation, a specialist has in depth information, experience, and knowledge of the buying process. Because of their specialty they also have tools and resources to manage your best interests. A tenant/buyer broker can devote more time and energy to your needs than one who is juggling many transactions and is more likely to be there for you throughout your lease.

Choose a Broker Who Knows Your Demographics

With knowledge of the demographics of a particular area, a broker who knows the area can provide you with a complete list of the available options in that area. They also are the first to know what is becoming available in your area, are familiar with the landlord’s strategies, and are familiar with your particular market. A broker that is familiar with a particular demographic can drive the hardest bargain based on their knowledge of the history of the property.

Choose a Broker Who Knows Your Product

Because there are differences between industrial, office, and retail properties, it is best to choose a broker who specializes in industrial properties only. The physical aspects of these types of properties differ greatly. Make sure that the broker you choose has a history of handling the type of property you are seeking.

Choose a Broker Who Knows Your Type of Business

If your representative has a full understanding of how your business operates, he can narrow down and pinpoint a property that will suit your specific needs. If your broker has represented businesses like yours in the past, he can find you the right type of property in a shorter period of time. And since time is money, a broker who knows your business can save you money by helping you choose a location that works for you.

Choose a Broker with a Defined Time Table and Accountability

Your broker should be able to provide you with a step-by-step process and general time table of the mechanical aspects of your transaction. By finishing one step before proceeding to the next, unexpected surprises are minimized. From start to finish, your broker should hold himself accountable to you as the transaction progresses. The real estate broker should keep your best interests in mind and assure you that nothing will be overlooked.

Choose a Broker with Support and a High Level of Service

Knowing is half the battle! A good real estate broker will provide you with a list of resources, tools, and market information. Ask how this information is relevant to the real estate transaction. Having access to the best information is crucial to a successful decision.

Choose a Broker You Trust

Trust your Gut! Choose a real estate broker that is personable and easy to talk with. We are naturally drawn to people who are like us, people we have something in common with. If you create an emotional connection with your real estate broker they will be more apt to aim to please and will work hard to gain your trust. With a connection, they will work harder for you and will strive to represent your needs in the best way possible.