How to Select a Commercial Real Estate Broker
For small business owners and a select group of property investors, a commercial real estate property will likely be one of the biggest investments they will ever make. This is why it's important to select a quality, experienced commercial real estate broker. Good brokers can save their clients millions of dollars and negotiate tenant improvements. Bad brokers can cost their clients millions if they overpay for a property, or they may cost them the property altogether if they fail to negotiate in a speedy, yet professional manner.
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Instructions
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Ask colleagues, friends or acquaintances who have purchased commercial properties if they have any brokers they can recommend.
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Search commercial real estate websites such as LoopNet.com, CityFeet.com, BuildingSearch.com and CIMLS.com for the types of properties you are looking for. You can set parameters such as the city, property type and range of square footage, rent and size of the building to produce more personal results.
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Contact a few of the listing brokers that are representing any properties you like. You also can search many of these sites for local area brokers who specialize in the type of property you are looking for.
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Select a few brokers with whom you may want to work with. Ask them key questions such as: How many transactions have you completed? Do you work alone or as part of a larger team? What do you think of the current market? Do you think my expectations are realistic? Do you ever double-end deals (represent both the buyer and seller)?How long do you think it will take me to find what I'm looking for? How many other clients are you assisting right now? How much commission do you charge?
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Ask to see the broker's resume, curriculum vitae (CV) and biography. In addition, ask the broker for professional references. These should include past and current clients, as well as a boss or two.
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Check your state licensing board or department of commerce to see ensure that the broker you want to work with is fully licensed.
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Tips & Warnings
Picking someone to represent you on a potentially multimillion-dollar real estate investment is never fool-proof. All you can do is your due diligence to ensure that you work with the most qualified broker possible.
