Commercial Real Estate Broker
To start your small business, you will usually need to find a space that not only fits your budget, but also has the ideal size and location for your business to succeed. A commercial real estate broker may be helpful in getting you the space you are looking for. Before you start the process of looking for a space, there are some basic questions that should be addressed at the onset:
Where will the business be located? How much square footage of space will we require? What is my budget? Is this space an optimal location for the nature of my business? How many miles away is my competition? When will the space be ready? Would it be more beneficial to hire a commercial broker to ensure I find the right space at the right price?
Hiring a Broker
Before you decide on hiring a broker, it is important to know how the process would work. Generally, owners of property will hire real estate brokers to find tenants. The brokers enter into a listing agreement with the landlord, which requires them to act on behalf of the landlord to lease the premises. The broker will earn a commission when the lease is entered into by the landlord and tenant. By law, all states require the real estate broker to be licensed. They must also pass an examination to obtain the license and sometimes have minimum educational requirements which must be fulfilled.
There are many times a real estate broker can add value to a transaction. Here are some reasons why you may need a broker to assist you in finding space:
01
Pricing - The owner's broker will want to get the best price for the owner. At the same time, if you have broker, he / she will work for you to get the best price for you.
02
Location - Your broker will have an idea as to what type of property and location will be ideal for you. The key is to have the best location, which will attract your business.
03
Specialization - In most places, commercial real estate brokers are specialized in office, retail, etc. Due to this, they have experience and are specialized in a specific sector. Their experience will be helpful to you in finding and negotiating a lease.
04
Negotiations - Your broker will have experience in negotiating the best deal for you. An experienced broker has probably closed on hundreds of deals. They can bring the same knowledge and experience to your deal. They also know many of the property owners and have an idea as to how much they are willing to negotiate.
05
Cost - The broker's fees are generally free to tenants. Brokers are paid through the listing agent in a fee sharing agreement. Brokers also have relationships with banks and other financial institutions if you are looking to purchase a property for your business. These relationships can make the lending process much easier.
06
Professional resources - An experienced broker also has strong relationships with attorneys, architects, interior designers, etc. Rather then you seeking each of these individuals on your own, you are better served by using referrals. Remember, the most important thing is for you to focus on your business and let the broker focus on finding you the right space.