The Challenge of Today’s Economy: You are an entrepreneur, a businessman, or woman who has managed to survive the tsunami of the current economy. You are now ready to take your business to the next level, or perhaps you need to restructure in order to save money on your expenses. Either way, you ask yourself, “Where do I begin?”
Reasons to Lease or Buy – After you’ve completed your business plan and marketing strategy, you’re going to need to secure the best location you can for your business. That location may be a larger space to accommodate growth, a smaller space to consolidate some of your operations, or you may just wish to relocate to a site that is more attractive to your needs. Having a qualified commercial real estate agent is essential to help you sort through the dross of the commercial real estate market to find that location that may be ideal for you. Since the economy is currently in a state of disarray, the poor housing and commercial property market has created opportunities to snag hot deals on premium properties and buildings for sale or lease. Many landlords are willing to make deals to get their spaces filled at a disadvantage only to offset their expenses. A Commercial Real Estate Agent can help you find these properties and negotiate great deals at no cost to you (The Seller / Landlord pays their commission). Consider your agent a source of inside information on the spread between asking and getting Rates, concessions, incentives, terms, etc. in the current market.
How an Agent Can Help You – A commercial broker or commercial real estate sales associate will help the potential buyer or lessee negotiate ideal terms of sale or lease. When attempting to buy or lease on your own, you may fall victim to real estate scams, poorly executed offers, or just not get the best deal possible simply because you didn’t know which questions to ask. Buying or leasing commercial property can be an extremely risky business unless you are a commercial real estate expert and are up to speed on the current market in that particular area. The truth is, most lessees or buyers are not experienced in the market of real estate and truly enter into leases with little preparation, not realizing the many different types of leases and all the added expenses involved with leasing or buying a property. Most business owners have the opportunity to locate and negotiate commercial sales and leases once every five years at best; CRE professionals do it daily. This is easily the number one reason for needing the services of a trained professional. You are an expert in your business; a commercial real estate agent is an expert in finding you the best location and negotiating the best rate and terms. Commercial real estate agents must have a good grasp on the local commercial market on a continuing basis in order to stay active in their business and close transactions. It is good practice to inquire about the experience and track record of a potential Commercial real estate associate.
Lease/Contract Negotiation – Assuming you are looking for commercial property to lease or purchase, you will most definitely need consultants. For law, you consult your lawyer; when it comes to taxation, you consult your accountant. Who are you going to consult for the purchase or lease of commercial property? – A commercial R/E expert. A good associate would coordinate all of the necessary consultants (incl. the lawyer, accountant, etc) needed to advise you the best under the circumstances. This service provides a prospect with the comfort that they are making not only an informed decision but a well-thought-out plan that has been calculated and is slated to be a success.
An Agent’s Geography – Many companies have a wide range of services (state-wide, national, international); however, an individual associate does not. A company in Jacksonville, FL, which specializes in commercial real estate in the area, should decline your request to examine properties in West Palm Beach, FL. Commercial real estate is local and cannot be fully understood online or over the phone or even on reports. An intelligent associate would refer you as a client to a local associate in the area you are seeking and may possibly receive a referral fee for doing such. It is good practice to be wary of associates who want to be your everything.
The Agent’s “Network” – It is wise to hire or enlist an associate that cooperates with other brokers. You aren’t just hiring one person, you are essentially hiring an entire company and the company’s resources to provide you with everything needed for a successful transaction. This also includes their inside information on what is happening in the market that is confidential or otherwise not commonly discussed or exposed; for example – Getting Rates, Lease Terms, Concessions, Etc. In commercial real estate, it is extremely important to have a consultant guide you and help you make the most informed and thought-out decisions to avoid the dismay of mistakenly making or passing on any transaction.