Commercial real estate brokers are completely different from their residential counterparts.The typical residential agent has promulgated contract and forms that they use in their offers and sales agreements. Commercial real estate brokers are more involved in the transactions.
Commercial brokers are involved with many types of negotiations. There are more steps that must be properly taken in each commercial transaction be experienced commercial real estate brokers. The broker must have more skills than simply showing commercial office space.
The first step that a typical client takes is to search own the internet for office space. Sometimes they will actually contact the landlord’s brokers and visit an office or two. They will usually discover that there is a lot more to leasing an office space than simply looking at offices.
Now the client will decide they need a professional tenant representative to help them located the best office space for their needs. Hopefully they will not work with one of the brokers that has a responsibility to the landlord. I had a phone call with a friend yesterday who kept referring to his broker. I asked him if he had signed a representation agreement with this broker. He said that he didn’t. I informed him that he doesn’t have a broker. The broker he is working with is considered a sub-agent of the landlord’s broker in Texas.
Yes, the broker has a responsibility to treat all parties to a transaction fairly but he doesn’t have fiduciary responsibilities to my friend. This is a fundamental concept but many people think they are getting something for nothing but in fact they are really getting nothing because they don’t have a broker with loyalties only to them.
Commercial real estate brokers have many tools that they will use to help you find and negotiate the best terms and conditions for your office lease. Yes we all have databases with property listings. Every office has these services. What separates the exceptional brokers form the mediocre. I would say that it is determination and drive.
Last week I earned business from a new client. He had been working with one of my competitors but he never found the location they were looking to move into. Out of desperation he reached out to me for help. We reviewed what they were doing and it was obvious that the broker he was using only searched for properties on a database.
If this is all your broker is doing you can do the same thing using Loopnet. It doesn’t take any skill to search for things on the internet. Our services offer so much more. In fact only ten percent of the work is finding a space. The true skills and talent are deployed when the top three locations are found.
Commercial Real Estate Brokers Skills
- Extensive market knowledge
- Construction knowledge
- Lease negotiation strategies
- Space planning
- Financial analysis
- Relationships with other brokers
If you are renewing your lease, expanding your office or looking for your first Dallas office location. You need to have the right skills on your team. YOU need to work with commercial real estate brokers that are exclusively representing you so that you get the best office space for the best deal possible.