Buying, selling, renting, or leasing a commercial property can be a daunting task. You must contact the other party, negotiate a price that works for the both of you, and work through extensive legal documentation that comes with the transaction. This whole process can be tedious, time-consuming, and exhausting. Luckily, commercial real estate brokers are available for hire to help you deal with all these problems; however, there is one circumstance where you shouldn’t hire a commercial real estate broker.
First, what is a Commercial Real Estate Broker?
A commercial real estate broker is a commercial real estate expert who can help you with any of your commercial real estate transactions. Paid by a percentage commission of the final sale or lease. A broker essentially acts as a mediator between you and the other party to ensure you are getting the best deal and to negotiate the details of the sale/lease. Their specific services depend on whether they are hired by a seller or a buyer, but they work to make sure whoever hired them is happy with the deal they go with.
What exactly does a Commercial Real Estate Broker do for a seller or landlord?
As a seller or landlord, you are looking to sell or rent your property to someone who is willing to pay market rate prices. A commercial real estate broker can help you find qualified tenants and buyers who have promising prospects.
In addition to assisting you greatly with finding tenants, commercial real estate brokers streamline the negotiation process by interpreting any legal information for you and working with a buyer or tenant to determine a market rate price for your property. Commercial real estate brokers are experienced with negotiating prices and terms and have a detailed understanding of what people are truly looking for and what the state of the market is like.
A commercial real estate broker will not only be better at handling the negotiation process but can also take over the tedious and energy-consuming task of the necessary details of the transaction. Handing this task off to someone else can relieve significant stress in the real estate process. Overall, a commercial real estate broker can help a seller find a buyer or a landlord to find a credible tenant.
What does a Commercial Real Estate Broker do for a buyer or tenant?
When representing the tenant or buyer, a commercial real estate broker can open a whole new world of benefits for you to reap. First, commercial real estate brokers have access to a multiple property listing services that track or organizes available properties. This ability is not easily available to the general public. Access to these databases or the market insight of a broker most often expands your options by giving you access to more properties and connections..
Commercial real estate brokers have extensive and expert knowledge of the commercial real estate market in your area. They often know not only properties’ current statistics and features, but also general trends in your area. They may be familiar with landlords who carry a bad reputations and be familiar with the trending economics of the area. This expert knowledge can help you find the most ideal property to meet your business needs.
Your commercial real estate broker can ensure you understand the general terms of what you’re agreeing to in a lease or contract. Legal jargon can be hard to decipher on your own, but a commercial real estate broker has a general understanding of legal terms and can facilitate the discussion between you and the attorneys involved with the transaction. Having a commercial real estate broker on your side ultimately makes the buying or leasing process easier and more efficient for all involved parties.
What is the one circumstance where you shouldn't hire a Commercial Real Estate Broker?
Often, owners of businesses decide to sell off their business and are able to retain the housing real estate and have a long-term lease signed by the acquiring company. This often proves to be an excellent retirement plan for the building owner.
In this case, you would most likely work with an independent appraiser to determine the buildings value or market rate lease as a lender typically requires and independent appraiser from a professional commercial property appraiser. Brokers can render an “opinion of value”. However, in the event of underlying debt on the property, lenders will require the help of a certified appraiser. ,
Well skilled commercial real estate brokers can be helpful in providing both advisory and direct real estate services. Just as we all need a good accountant, it will prove wise to build a business relationship with a skilled commercial real estate broker who, when needed, can help with important real estate decisions.
