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June 3, 2019
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A broker on the commercial real estate market. When is it worth to use his services?

In the era of new technological solutions, real estate market brokers have ceased to be an indispensable element of the transaction. This does not mean, however, that they have completely lost their importance. A good agent may still be needed. However, this will be narrowed to specific situations.

It is not without a reason that we are talking about a good agent, because especially such a specialist will prove to be a valuable companion in the lease process. Unfortunately, getting a professional with a lot of knowledge and experience can be more difficult than it seems. Why is this happening? We will talk about it in a moment.

Let’s assume, however, that we are actually dealing with a reliable broker, an old stager in the real estate market, and, at the same time, a person of impeccable morality and professional ethics.

A good broker will help one specify the direction of the search

On the real estate market, there may be a situation when a tenant does not have adequate market knowledge and does not know exactly what kind of building/location/solution would be the most suitable for him.

In the first place, a good broker will help to specify the direction of the search. When the tenant tells him about the specifics of his business, the broker may suggest, for example, the location or size of the space.

Then, it may turn out that the tenant, who initially thought about 400 square meters of office space in the business part of the city, will eventually decide on 200 square meters in another district – because the broker will make him aware that due to the type of business, he needs less, but better adjusted and more flexible space outside the business center.

When we feel that we are lost, that we are not completely sure about what we are looking for (100 meters or 300 meters? A glass office building or a tenement house?), it may be a signal that we need the support of a good broker, so as not to waste time looking for something that we did not need from the beginning.

A good broker will help one launch a network

Using a broker’s services is a good solution when we develop a network and want to open a few points of sale. Agencies with branches in different cities can help bring the brand to the market faster, especially when we are from another country and have no idea what the local real estate market looks like.

In this case, the broker combines his knowledge with the fact that he can immediately offer more than one location for the development of network.

A good broker will help ease the negotiation dispute

It might happen that – guided by personal pride – the tenant and the landlord will not agree on the price for renting or some trivial details. Everyone insists on their stakes, even when the difference is insignificant and both sides could give way without much loss.

Emotions are at stake, and the broker is the side-standing person, some kind of mediator who helps the parties cool temper and reach an agreement. In this way, he may “save” a good transaction that would otherwise not have come to fruition.

A good broker – a rare gem on the market

In contrast to the residential real estate market, the commercial real estate market has relatively few brokers. Those with the best knowledge and experience usually devote their time to the largest clients: banks, corporations, and large companies. They are tenants who are looking for large spaces for a long period of time.

The rest must take into account that they will probably be assigned a less experienced broker (so-called junior), which does not necessarily have the best knowledge of the local market, and his advice may (although it does not have to) depend on the amount of commissions associated with specific buildings.

Therefore, using the services of a broker, we must always demand transparency – information on the commission that the broker will receive from selling or renting various places.

As we mentioned, a good broker, if we find one, can be very helpful in a situation where we need real advice (also in terms of contracts or surface equipment) or we want to develop a sales network, especially on a foreign market.

In other situations, a more modern solution is worth considering. With specific needs, the Realko24 platform will allow a perfectly matched tenant and landlord to contact directly – saving their time and money.

 

Source: Realko24