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Commercial real estate can be a great investment for those who are savvy, or for those who hire expert advisers. If you are new to investing in commercial real estate properties, there are a number of factors that you should consider before investing, including the risks and benefits of the investment, the type of property you want to acquire, and the best way to protect your personal assets. Each type of commercial property brings with it unique challenges, so is best to surround yourself with experienced investors and professionals to help guide you through the process. READ FULL ARTICLE HERE
I often get asked by business owners and commercial property owners why someone should hire a real estate agent that specializes in commercial properties.
The following is a list of reasons to hire a commercial real estate agent, whether you are looking to relocate your business, lease, invest or list your property for sale or lease:
1. Save Time:
Business owners have enough to do in their day to day to take the time to compile and review listings, call listing agents, schedule and arrange property tours, write offers, review city zoning, and stay on top of a lengthy negotiation, among other things. By hiring a commercial real estate agent to handle their listings, my clients free themselves of the time it takes to create and update listings on the various commercial real estate listing services, create marketing brochures, social media, field phone calls and emails, show the property, handle a negotiation, and facilitate a closing whether that be preparing and executing a lease document or managing property sale through its process. This allows my clients to do what they do best: focus on their business.
2. Save Money:
Commercial real estate agents save clients money because they have the skills to negotiate the best deal on behalf of their client. Agents who represent a buyer or a tenant are paid a commission from the landlord/owner. A good agent will get paid their fee by the owner, while also achieving the best deal for their client.
A commercial real estate agent is savvy on market trends and negotiating tactics that save their clients thousands of dollars over the course of a transaction. An experienced agent is also knowledgeable of the finer nuances in a lease transaction that can save a landlord thousands of dollars over the life of lease. As an example, one of my property owner clients was unaware that tenants can be made responsible for the repair and maintenance of many utility systems which already exist on the property, (i.e. plumbing, electrical, and HVAC). Over the next 10 years this could save my client an estimated $50,000.
3. Listing Access:
Frequently, people are unaware that commercial real estate listings are not centralized as they are in residential real estate. Because there are so many different property and transactions types, commercial real estate has several different listing platforms, and only a couple of them are open to the public (i.e. commercial agents subscribe to them). This is not the case with residential real estate. In residential transactions, buyers and sellers have access to the data stored in the MLS.
4. Market Knowledge:
Commercial real estate agents have in-depth market knowledge that our clients, both tenants/buyers and landlords/sellers, often don’t have. After all – it’s our job and like any profession, we need to stay on top of the trends in our field. Not only do we track lease and sale comps, but we often hear information before it hits the general public.
Because of this market knowledge we are able to structure and evaluate a deal, and even help evaluate if a prospective tenant/buyer is credible. A good commercial agent is knowledgeable on the latest market trends which allows our clients the peace of mind to know that we will structure a deal accordingly.
5. Circle of Contacts:
A good commercial real estate agent is well connected. We stay in close touch with business owners, investors, colleagues, lenders, commercial real estate attorneys, appraisers, and local economic development officials. We utilize this network every day, as these contacts are experts in their fields, and serve as incredible market resources.
In doing so, we are able to 1) gain access to listings that may not be available yet or may not be listed, 2) introduce buyer clients to sellers and vice versa, 3) contact local economic development officials regarding zoning regulations, 4) seek legal assistance and 5) help our clients source the funding they need to close a deal.
So there you have it. 5 great reasons to hire an experienced commercial real estate agent in your region. Let us take care of our business while you tend to yours. After all, there are only so many hours in a day, and we take our business as seriously as you take yours.