| The fundamental principle of hiring any trained | | | | newspaper, and try to catch them on the up tic, |
| professional comes down to cost-benefit analysis: | | | | when they need to secure new office space, or |
| Does the person save you time, or provide | | | | new warehouse space, or new manufacturing |
| capabilities that you otherwise would not have | | | | space. They are very proactive in watching |
| with the money you spend? Most real estate | | | | trends in the local commercial real estate market, |
| professionals undervalue their time considerably, | | | | and should be informing you about things you can |
| and overestimate their own | | | | do to reduce your vacancy rate. |
| capabilities…and because of this, real | | | | From a businesses perspective, they engage the |
| estate investors who wouldn't think twice about | | | | services of a commercial real estate broker |
| trying to represent themselves without an | | | | before they commit to moving; sometimes, they |
| attorney will cheerfully forgo one of the most | | | | engage the services of a broker to help |
| useful additional services that they can buy: A | | | | renegotiate an existing lease. Typically, a business |
| commercial real estate brokerage firm. | | | | engages a broker at about three to six months |
| Part of this mindset comes from the truism that | | | | before they're planning on moving, and let the |
| you get into real estate, particularly commercial | | | | broker sift through all the listings of facilities and |
| real estate, to be a hands on investor. It's very | | | | buildings for them. This makes sense - spending |
| easy to get in the habit of doing things yourself, | | | | time searching for a new office location takes |
| and when there's a down (or even turbulent | | | | time that could be used to grow their existing |
| market), it's easy to justify putting off hiring a | | | | business, or service their existing customers. |
| good broker as a luxury, rather than focusing on | | | | A good commercial real estate broker provides |
| other goals. Commercial real estate has been, and | | | | them additional capabilities for negotiating leases, |
| always will be, a business built around face-to-face | | | | or getting new capabilities (like a new loading dock, |
| contact, and if you're used to being hands on with | | | | or 220v power lines) put in prior to the move in, |
| your investment, that sort of face-time is hard to | | | | and looks over their leasing arrangement while |
| delegate. | | | | asking them questions about prior growth |
| Now that we've put all the objections in one | | | | patterns and expected growth patterns. Both of |
| basket, let's examine them. Your job as the | | | | these make a commercial real estate broker a |
| investor should be watching the profit-loss | | | | great investment for a business looking to |
| statement of your business, dealing with the | | | | relocate. |
| financial overhead of payments received and | | | | In much the same way that property owners |
| payments due, and looking for new properties to | | | | sometimes don't see the value of a real estate |
| acquire, or looking for people to sell your existing | | | | broker, businesses looking to relocate can also get |
| properties to if you're ready to flip them. Those | | | | stuck with a "do it internally" mindset…and |
| tasks are tedious and time consuming, and they | | | | this can be even more costly to them than for a |
| eat a lot of research time. Your real estate | | | | commercial real estate investor, because the |
| broker has the job of making sure that your | | | | facilities search often takes the top levels of |
| properties are solicited, and to keep the vacancy | | | | management out of the loop for extended |
| rate low. | | | | periods of time - and they have more important |
| Unlike your building managers, your real estate | | | | things to do. |
| broker won't have much contact with your | | | | When choosing among real estate brokers, an |
| tenants after the lease has been signed and | | | | important trait to keep in mind is questions - a |
| they've moved in; it's the pre-move in pacing and | | | | good real estate broker will ask you a bunch of |
| timeline where a real estate broker will earn their | | | | questions that boil down to "what do you need" |
| commission, and they'll earn it by both providing a | | | | and "what will you need?" A real estate broker |
| capability you don't have on your own, and by | | | | that doesn't take the time to ask you about how |
| saving you time. | | | | your business runs won't be able to find you the |
| A commercial real estate broker is more than | | | | facilities you need for both current and anticipated |
| just a rental agent; they're someone who's | | | | future needs. Keep this firmly in mind when |
| plugged in to the local business environment. They | | | | evaluating brokers, as either a business owner or |
| keep an eye peeled for businesses that are | | | | as a property owner looking to list with one. |
| growing in the local financial sections of the | | | | |