The best way to avoid mistakes when buying, selling, or leasing commercial real estate is to hire an experienced commercial real estate broker. An experienced broker can save you time and money and will help you obtain the best terms and conditions.
Most business owners are so busy running their companies, that they either don’t have the time and/or should not be spending their time looking for the perfect location. A good broker will carefully interview you to help you determine wants, versus needs, and a realistic budget. The broker will then survey the market to narrow down properties that best fit your wants, needs, image, and budget. They will gather information on relevant properties and will organize a well-planned tour of the best options. They will negotiate the best terms and conditions for you so that you can focus on running your business.
When investing in or leasing commercial real estate there is no substitute for market knowledge and experience. For example, let’s say you look at two comparable office properties. Property A is $36/foot and property B is $33/foot. You decide to go with Property B because it seems like a good deal. How do you know $33 a foot is a good deal? What if you found out another tenant with similar credit, similar tenant improvements, and the same term just signed a lease in the building for $30 a foot and they got 6 months of free rent? On a 5,000 square foot lease, that price difference would mean that you are paying $15,000 per year more for every year of the lease and you also missed out on $7,500 in free rent in year 1. A knowledgeable broker will know what other recent deals have been done in the building and will use that market knowledge to your advantage when negotiating with the landlord.
Best Terms and Conditions.
A typical business owner may only buy one commercial real estate property during the life of their business. If leasing they may only be in the market once every five to seven years. In contrast, commercial real estate brokers are out in the market every day. They know what comparable properties are going for. They know what concessions are being offered. They also know which properties and owners to avoid. Brokers review purchase and sale agreements and leases every day. While they are not lawyers, experienced brokers can point out terms that are particularly onerous or outside of market norms.
What should you look for in a commercial real estate broker? Here are few tips.
Experience – There is no substitute for experience. Hiring someone with ten years or more of experience is preferable.
Knowledge of the Asset Class. Hire a commercial real estate broker that specializes in the type of property you are buying selling or leasing. For example, don’t hire a shopping center broker to help you with an office lease.
Knowledge of the Area. Hire a broker who regularly completes transactions in the location where you are looking.
What Should you Expect to Pay for Commercial Real Estate Broker’s Services?
Buyers and tenants typically pay nothing for their broker’s services. A buyer’s broker is paid by the seller at closing. The landlord’s broker pays tenant broker fees. Why not take advantage of this incredible free service?
At Mobiliti CRE we focus 100% on representing tenants with office relocations, expansions, contractions, and subleases throughout Tampa Bay and the entire West Coast of Florida. We also assist businesses that are looking to purchase office, medical office, industrial, and retail space. Reach out to us for assistance with all of your Tampa Bay commercial real estate needs at (813)-300-2227 or email us at firstname.lastname@example.org
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