A commercial real estate broker has many skills that can be invaluable for any business owner looking for the perfect brick-and-mortar location. This professional has specialized local market knowledge, including tax laws and zoning regulations.
A broker can also help you negotiate with landlords. They can level the playing field by putting you in a better position to get better terms on your lease.
Professionalism
When shopping for a commercial real estate broker, ensure they have the professionalism you seek. Many brokers will tell you they are experts. However, it is essential to look past the surface level.
The best commercial brokers have experience working with a variety of different types of clients and properties. They understand the nuances of retail property sales and leases, including business needs, economic cycles, gross rent multipliers, and special tax laws.
An excellent commercial broker such as Denver Commercial Properties will have a firm understanding of market trends and a clear picture of the industry’s future. This is invaluable information when making a purchasing or leasing decision. An excellent commercial broker should also be able to evaluate business plans and complete the required formalities to remove barriers that may prevent investment or expansion.
Knowledge of the Market
Whether you are a landlord looking to sell the property or a tenant seeking new space, your broker should be well-versed in the current market. They will also know how to negotiate and can get you perks like lower base rent, higher annual rent escalations, or increased build-out allowances.
Brokers often specialize in a particular location and will have good relationships with local real estate owners, property managers, lenders, and attorneys. This helps them provide more knowledgeable service and find properties that fit their clients well.
For example, if you are looking for office space in Denver, your broker should know when new properties are coming on the market and be able to show you various options that meet your needs.
Communication
A seasoned broker will have an intimate knowledge of your local market. They will be able to provide insight into property trends, vacancy rates, and the current supply of and demand for commercial real estate in your area.
Brokers can be instrumental during the negotiation process, as they can spot terms that benefit their clients. They can also leverage their professional experience and resources to level the playing field with a landlord or seller.
It is usual for a broker to work as both a tenant rep and a landlord rep, especially in lower inventory markets. However, a conflict of interest should be declared and addressed in the contract before a broker begins working with you.
Flexibility
A quality broker will be flexible in meeting with potential clients, especially when rescheduling appointments to accommodate busy business owners. This can mean long days, late nights, and weekends, but it’s essential in establishing trust.
A good commercial real estate broker can quickly narrow down a list of properties for lease or sale. This helps to remove the stress of scouring listing platforms and finding space that might need to be more suitable.
A commercial real estate agent working on a landlord’s behalf will help negotiate the most favorable lease terms for tenants while evaluating their client’s business plans to ensure they can afford to invest in the property. For example, they’ll assess trade cycles and other aspects of a business plan to help determine whether or not a commercial property would be financially beneficial.
Negotiation Skills
Commercial real estate brokers must be able to negotiate. This involves finding a win-win solution for all parties. It also requires a lot of planning and preparation to ensure you are ready to meet your client’s needs.
A good broker will be able to build rapport with clients and other industry professionals. This will help you find new opportunities and secure repeat business.
It’s important to know when to walk away from a deal. If careless, you could sacrifice too much and regret it later. It’s best to enter negotiations with at least one backup plan, but often with more than one.
A good commercial real estate broker will know contract and property laws. This will help them ensure they are meeting their legal obligations and ensuring the interests of their clients.
