A Commercial Real Estate Broker offers two important things – occupancy and delivery of services. Hiring a Commercial Real Estate Broker to be your tenant representative is more beneficial than you may initially think. If you think you can do it alone, consider the following before tackling the project yourself.
- It won’t cost you any money – When it comes to residential real estate, a hired Broker shares part of the commission with the homeowner. It works the same way in commercial real estate. The Broker representative and the occupier representative share commission. Broker’s are usually compensated by the seller or Landlord’s Broker.
- They will represent the best price AND your best interest – A Landlord might not know some crucial facts about the building but a Broker would, since they have the time to conduct the necessary research. A Landlord might omit disclosing unfavorable things while discussing the property. A Commercial Real Estate Broker will be able to point you in a different direction if the property isn’t quite as advertised.
- A tenant might want to know what others in the building pay for rent. A Landlord would not usually give up this closely held information since it’s their fiduciary responsibility to get the highest price possible. A Commercial Real Estate Broker can. The benefit here would be making sure you are not getting charged unfairly. The bigger picture? They know what buildings to stay away from based on Landlord reputation.
- A Commercial Broker knows how to plan a space – Commercial Real Estate Broker’s have connections to outside contractors, architects, and furniture vendors to help you once you’ve decided on a property. Instead of having to do the research on who is the best and who is the most trustworthy, they can do it for you. Not only do they know who the best people are, they also know where to find the best prices.
- A Commercial Broker is better at negotiating – After the final plan comes together, it’s time to negotiate the lease. This can turn out to be much more complex than you might think. You need to get something this important done right the first time. A Broker will know the going rate in the area and can make sure the calculations of the “load factor” are correct. Most tenant occupiers will go through 3-4 leases in the span of their real estate career, whereas a professional Broker does anywhere from 10-15 commercial leases per year. Bottom line: they have more experience than you do.
A Commercial Real Estate Broker’s job doesn’t stop after the tenant moves in. They stay available to review rent charges Landlords make as operating costs of a property increase. They can cap what the Landlord charges and can make sure they are operational expenses, not capital expenses. You can breathe easy knowing you have someone trustworthy to turn to for market information and renewals. Because they are able to do all this, they will be the first ones tenants call when they need more space.