18 Reasons to work with a Commercial Real Estate Broker over 18 days

Over the next few days I will share with you 1 new reason out of 18 Reasons that working with a Commercial Real Estate Broker is the right decision.

  1. Cost Savings: Just as the owner’s or seller’s Broker works to get the owner or seller the highest price, your Commercial Real Estate Broker, has the duty to work to get you the best deal. The most common reason people don’t engage a commercial real estate Broker is to save on the cost of a commission. In commercial real estate the majority of properties are listed with commercial real estate firms that have commission agreements in place.  In such cases a commission is built into the pricing of the property or space and it is customary to split commissions with cooperating Brokers representing tenants.  Thus, no real savings usually are achieved here.  More important aspects to consider are the cost savings achieved through time management, successful negotiations, and proper deal structuring along with market knowledge that only an experienced Calgary commercial real estate broker brings to the table.
  1. Best Fit: With an extensive knowledge of the market, your Commercial Real Estate Broker works to ensure that any property or space you invest in is truly appropriate for your needs. Unlike when you work with the owner’s or seller’s representative or “listing Broker”, there is no incentive to provide alternatives to any one particular property.  In addition, a good Broker has access to data and tools such as demographics, traffic counts, and comparable lease and sales data.  Knowing what is standard or typical in the market is extremely important when making a decision.
  1. Market knowledge: Knowing the market and where you will attract your targeted clientele is paramount in the success of your business. As in every industry, market conditions are constantly changing and opportunities are found and lost on a daily basis.  The commercial real estate industry is very proprietary on sharing information unlike the residential real estate market.  A commercial real estate Broker processes hundreds of opportunities each day through various sources while filtering out the best resources for their clients.
  1. More Choices: With a Commercial Real Estate Broker as your advocate, you will see all available properties on the market, not just the ones listed by any one firm or Broker.
  1. Information disclosure: As your Broker, they can disclose information to you concerning the seller’s or owner’s motivation, prior transaction data, or other information that the listing Broker may not or will not disclose. Your representative can keep private information that other Brokers cannot. You may disclose information to them about your situation.  As a seller’s or owner’s Broker, they might be required to transmit the information to the seller. As an exclusive Broker, they do not have that requirement.
  1. Loyalty: A listing Broker may agree to show you properties other than the ones that they have listed, however, they may make half as much money if you do not buy or lease one of their listings. Therefore, they have a powerful incentive to steer and influence you to their properties. By handling only tenant and buyer representation, there is no chance that any of the properties you will be considering will be represented by your Broker.
  1. Negotiations: As your exclusive Commercial Real Estate Broker, they are looking out for your best interests and should have experience with a commercial lease. While there is no substitute for hiring an attorney yourself, it is beneficial to have your Broker reviewing the document as well.  The art of negotiating in a specific industry is honed over years of transactions.  Successful negotiation of a real estate transaction is stressful and may be time consuming for those involved.  A commercial real estate broker utilizes their experience in handling negotiations for their client relieving them of that stress by acting as a buffer, and freeing up their client’s time so that the client can focus on their daily business.
  1. Structuring leases or purchases can be complex: It should help to have someone on your side of the table armed with knowledge on sound structure and market conditions.
  1. Simplification:Having a single point of access for information and guidance on your Real Estate transactions making the process simpler than working with various Brokers, dealing with various bits of information, on various properties.
  1. No Cost: The cost to use a Commercial Real Estate Brokers’ services are typically covered by the property owner and are paid through the listing Broker as part of the normal cooperation or brokerage fee sharing arrangement. This is a no lose situation for buyers and tenants and you get all the benefits.
  1. Financing: Commercial Real Estate Brokers have relationships with many lenders which have money to lend at competitive rates as well as connections for small business and various other programs.
  1. Relationships:In addition extensive knowledge of the Real Estate marketplace a knowledgeable Broker will have working relationships with other business and property owners. This allows you the client to have an edge on your competition and desirable business locations that play a key role in selecting the best location for your business.
  1. Buffer: You always want to have a Commercial Real Estate Broker involved in a transaction to represent your interests. If an Owner or Tenant does not have one, at least your interests are represented and can act as a buffer between the parties.  Commercial Real Estate Brokers add a great deal of value by managing the interaction between parties.  You should never attempt to save money by avoiding commission.  The landscape is littered with failed deals and ruined relationships because someone wanted to save a few bucks.  A good Broker can smooth the often difficult and emotional process and can even offer solutions that meet your goals of getting the deal done.
  1. Experience:Commercial real estate can be complex in structuring advantageous lease or purchase terms.  Nothing in business can replace years of hands on experience.  You may have access to some real estate information via the library, newspapers, Google and the internet but the benefit of hands on experiences is priceless.  A seasoned commercial real estate Broker who has lived through the beginning and the end of numerous transactions can offer the benefit of their experiences to your real estate transaction.  The experience is invaluable!
  1. Good commercial property Brokers review the market on a daily basis: They know the owner of many of the properties in the area and how willing which landlords are to negotiate and which ones are difficult.
  1. Specialization: In most metropolitan cities, commercial real estate Brokers specialize in areas such as office, industrial or retail markets. As a result, they achieve and maintain expertise in that specialty and utilize this expertise when seeking out and obtaining optimum terms for their clients.
  1. Time Management: A business owner or manager usually has their hands full running the day to day operations of their company. By engaging the services of an experienced commercial real estate Broker, owners and managers can maintain their focus on their business while obtaining the benefits and guidance of a real estate professional in identifying and securing their new property or facility.  A good Broker knows the market and area in which they serve.
  2. Deal Structure: Each and every real estate transaction is concurrently similar yet unique in its structure and function. Proper structuring of a transaction can save a client hundreds if not thousands of dollars.   An example of potential savings deals with proper structure of “Base Year” in leases for building operating expenses.
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