Tag Archives: Professional commercial real estate brokers

How Commercial Real Estate Professionals Add Value To The Property Search Process

30 Apr

Professional commercial real estate brokers add value to the process of finding solutions to solve commercial real estate requirements. While some consumers believe they can effectively direct their own search due to the rise of online databases such as Loopnet, Reis and Truss, these consumer-facing databases don’t always provide current and comprehensive market data. These online services also cannot provide other significant, personal, and specific services that a real estate professional can provide. A professional commercial real estate broker has access to current market as well as to any off-market availabilities, which is especially crucial in a very tight real estate market such as we are currently experiencing. No online database can fully replicate or replace the market knowledge and experience of a professional broker.

Aside from having access to current available properties, a broker has first hand knowledge of current industry trends, fair market pricing, leasing concessions and other valuable market information which can enable the consumer to obtain the most favorable financial terms. Since professional brokers are involved in the market day to day, they will have a better overall understanding of current market conditions. The commercial broker also can leverage their relationships with other commercial brokers and landlords to achieve the most favorable bargain on behalf of the client. Further, a professional broker understands the complexities and nuances involved in a commercial real estate transaction and that experience is extremely valuable. In addition, brokers work with the client’s attorney in an effort to avoid potential pitfalls in a commercial lease.

It is customary that the brokerage commission is paid by the landlord in the commercial real estate industry.  Landlords include this cost as a line item when they proforma a real estate project, and is a relatively insignificant cost in relation to the overall project. Landlords highly value commercial real estate brokers as they make introductions to prospective tenants which are the linchpin for the success of their investment. So Landlords gladly compensate brokers because of the value they bring to the table, even though Landlords understand that the tenant or buyer broker must advocate on behalf of their client’s best interests.

Finally, a professional full service broker can also provide assistance with other aspects involved with leasing or purchasing commercial property such as referring general contractors or providing guidance pricing on build out costs, relocation coordination and obtaining vendors to help with furniture, fixture and equipment installation, etc. Commercial real estate professionals provide a valuable service to the consumer and should be an integral part of the process when searching for property.

Please contact me to review your specific space requirements and help with finding the best solution to your specific commercial real estate requirements.

Warren Brown, President, Boston Commercial Properties, Inc.