What To Look For In A Commercial Real Estate Broker
By Tony Veldkamp | May 5, 2014
From leasing office space, to land acquisition, the terrain of commercial real estate can be quite rocky to navigate alone. Whether holding or investing in commercial real estate, one is required to make many considerations during a commercial real
estate transaction that necessitate the guidance of an experienced advisor. With the abundance of investors jumping into the commercial real estate market, an equally abundant pool of commercial advisors have emerged offering to broker the perfect deal.
Choosing the right investment advisor to handle your transaction will play a significant role in your bottom line regardless of which side of the transaction you are on. The purpose of this article is to help even a novice in the world of commercial real estate and equity investing, narrow their search to find the best advisor to handle their deal. Here are five characteristics to look for in a commercial real estate broker along with some important questions to ask when interviewing potential advisors to determine their proficiency in each area.
#1 – Experience in Commercial Transactions
Is your ‘commercial broker’ a residential real estate agent moonlighting in the commercial industry? When interviewing potential brokers, be sure to find out which percentage of overall transactions handled by your broker are represented by commercial deals. Look for a broker who specializes in and works exclusively with commercial real estate as it is important for them to be familiar with the intricacies of marketing and selling/leasing a commercial property. When evaluating a true commercial broker, find out if they have access to all the commercial property databases and the latest comparable sales and leasing transactions data. This information is pertinent to not only negotiating a deal that is most profitable for you, but also to expedite that process.
The SVN Commercial Advisory Group (SVN CAG) team is comprised of commercial real estate experts dealing exclusively with the commercial real estate market. As a whole, the SVN CAG team possesses a group average of 22 years of real estate experience. SVN CAG is backed by one of the most recognized brands in the commercial real estate industry according to the 2013 & 2014 Lipsey Survey. Brokers working with an established commercial real estate firm will possess proficiency in the arena of commercial real estate as well as the financial stability required to keep your best interest at the forefront of each transaction.
#2 – An Innovative Marketing Plan Designed for the Commercial Real Estate Market
Does the broker you are interviewing to market and sell your commercial property have a marketing plan that is geared towards commercial real estate? The following questions will help you determine just how effective your potential broker’s marketing efforts will be on your behalf:
- Does your potential broker subscribe to the various commercial real estate databases and commercial real estate marketing platform’s, such as Catylist and LoopNet?
- On how many websites will your property be published?
- Does your potential broker have a professional, cohesive, signage and brochure program?
SVN CAG has an exclusive web-based computer program offering exposure on all major commercial real estate marketing platforms, which allows for immediate syndication on over 10 different websites specifically geared towards commercial real estate. Additionally, SVN CAG’s innovative marketing technology enables SVN brokers to generate professional sales & leasing brochures, exclusive property websites, as well as eblasts to specified buyers out of the same system.
#3 A Collaborative Co-Brokerage Approach to Commercial Real Estate
Does your Commercial Agent participate with other agents and share commissions or do they try to horde the listing in an effort to collect both sides of the commission? Many national brokerage organizations do not co-broke commission or try to encourage outside brokerage participation. In fact, most commercial real estate brokerages discourage other brokers from bringing buyers or tenants to the deal.
SVN believes that the best way to get the highest price for the seller/landlord is to get the property as much market exposure in as many different forms as possible. By taking a collaborative approach, SVN brokers generate as much activity as possible, and in turn, as many offers as possible. By choosing a collaborative co-brokerage approach to market properties, each listing gains much greater exposure to potential buyers; this effort encourages other brokers to bring forth offers quickly. SVN CAG also leverages participation in the local Association of Realtors to network, promote properties, and encourage outside broker involvement.
#4 – Specialized Training & Experience In Applicable Property Type And Location
It is common, in smaller markets like Manatee, Sarasota, and Charlotte Counties, for commercial brokers to have to handle all types of commercial real estate transactions just to make a living. However, in some larger brokerages, such as SVN CAG, each agent has a product specialty and/or market area that they know better than anyone else in the industry. When interviewing potential brokers, be sure to select a specialist to handle your property. It does not cost you any more to use a broker with expertise in your specific property type and location, however it is likely to cost you on your bottom line if you do not.
#5 – A Full-Scope, Local to National, Marketing Reach
With commercial real estate’s growing popularity among investors, be sure to take advantage of the full market. Greater demand of course, will guarantee the best offer for your property. Does your commercial broker have both local market knowledge and national reach through a national network? Do not limit yourself by just choosing a firm who lacks access to a national network of prospective buyers and real estate investors. It is in your best interest to select a firm that not only possesses local market expertise, but one that has the ability to expose your property to a national pool of buyers, investors, and business owners. In today’s international real estate market, you never know where your buyer or tenant is going to come from. SVN has a national network of commercial real estate experts with an immense, collective ability to promote properties. SVN CAG brokers work in partnership for the betterment of every client, in order to ensure each property is sold or leased as quickly as possible.
SVN CAG – National Power, Local Expertise