We're in the business of helping businesses.
18 Reasons to Hire a Commercial Real Estate Agent
1. Cost Savings: Just as the owner’s or seller’s agent works to get the owner or seller the highest price, your Commercial Real Estate Agent, has the duty to work to get you the best deal. The most common reason people don’t engage a commercial real estate agent is to save on the cost of a commission. In commercial real estate the majority of properties are listed by owners with commercial real estate firms and have commission agreements. In such cases a commission is built into the pricing of the property or space and it is customary to split commissions with cooperating agents representing tenants. Thus, no real savings usually are achieved here. More important aspects to consider are the cost savings achieved through time management, successful negotiations, and proper deal structuring along with market knowledge that only an experienced Calgary commercial real estate broker brings to the table.
2. Best Fit: With an extensive knowledge of the market, your Commercial Real Estate Agent works to ensure that any property or space you invest in is truly appropriate for your needs. Unlike when you work with the owner’s or seller’s representative or “listing agent”, there is no incentive to steer you to any one particular property. In addition, a good broker has access to data and tools such as demographics, traffic counts, and comparable lease and sales data. Knowing what is standard or typical in the market is extremely important when making a decision.
3. Market knowledge: Knowing the market and where you will attract your targeted clientele is paramount in the success of your business.
As in every industry, market conditions are constantly changing and opportunities are found and lost on a daily basis. The commercial real estate industry is very proprietary on sharing information unlike the residential real estate market. A commercial real estate agent processes hundreds of opportunities each day through various sources while filtering out the best resources for their clients.
4. More Choices: With a Commercial Real Estate Agent as your advocate, you will see all available properties on the market, not just the ones listed by any one firm or agent.
5. Information disclosure: As your agent, they can disclose information to you concerning the seller’s or owner’s motivation, prior transaction data, or other information that the listing agent may not or will not disclose. Your representative can keep private information that other agents cannot. You may disclose information to them about your situation. As a seller’s or owner’s agent, they might be required to transmit the information to the seller. As an exclusive agent, they do not have that requirement.
6. Loyalty: A listing agent may agree to show you properties other than the ones that they have listed, however, they may make half as much money if you do not buy or lease one of their listings. Therefore, they have a powerful incentive to steer and influence you to their properties. By handling only tenant and buyer representation, there is no chance that any of the properties you will be considering will be represented by your agent.
7. Negotiations: As your exclusive Commercial Real Estate Agent, they are looking out for your best interests and should have experience with a commercial lease. While there is no substitute for hiring an attorney yourself, it is beneficial to have your agent reviewing the document as well. The art of negotiating in a specific industry is honed over years of transactions. Successful negotiation of a real estate transaction is stressful and in many cases time consuming for those involved. A commercial real estate broker utilizes their experience in handling negotiations for their client relieving them of that stress by acting as a buffer, and freeing up their client’s time so that the client can focus on their daily business.
8. Structuring leases or purchases can be complex: It should help to have someone on your side of the table armed with knowledge on sound structure and market conditions.
9. Simplification: As an exclusive buyer’s or tenant’s agent, they are your one point of contact. This is much simpler than keeping contact with various agents on each property.
10. No Cost: Commercial Real Estate Agents’ services are free to tenants and buyers. They are paid through the listing agent as part of the normal cooperation or brokerage fee sharing arrangement. This is a no lose situation for buyers and tenants.
11. Financing: Commercial Real Estate Agents have relationships with lenders which have money to lend at competitive rates as well as connections for small business and various other programs.
12. Relationships: In addition extensive knowledge of the Calgary Commercial Real Estate market and relationships, your broker brings their experiences that assist the client in understand and weigh the facts to find and select the best site.
13. Buffer: You always want to have at least one Commercial Real Estate Agent involved. So if the seller or lessor does not have one, at least yours can act as a buffer between the parties. Commercial Real Estate Agent add a great deal of value by managing the interaction between parties. You should never attempt to save money by avoiding commission. The landscape is littered with failed deals and ruined relationships because someone wanted to save a few bucks. A good agent can smooth the often difficult and emotional path through the deal. It’s worth it.
14. Experience: Commercial real estate is not rocket science yet can be complex in structuring advantageous lease or purchase terms. Nothing in business can replace years of hands on experience. You may have access to some real estate information via the library, newspapers, Google and the internet but the benefit of hands on experiences is priceless. A seasoned commercial real estate agent who has lived through the beginning and the end of numerous transactions can offer the benefit of their experiences to your real estate transaction. This experience is invaluable!
15. Good commercial property agents scour the market on a daily basis: They know the owner of many of the properties in the area and know how willing which landlords are to negotiate and which ones are difficult.
16. Specialization: In most metropolitan cities, commercial real estate agents specialize in an area such as the office, industrial or retail markets. As a result, they achieve and maintain expertise in that specialty and utilize this expertise when seeking out and obtaining optimum terms for their clients.
17. Time Management: A business owner or manager usually has their hands full running the day to day operations of their company. By engaging the services of an experienced commercial real estate agent, owners and managers can maintain their focus on their business while obtaining the benefits and guidance of a real estate professional in quantifying and securing their new facility.
A good agent knows the market and does not have to start from scratch learning the good areas and good deals.
18. Deal Structure: Each and every real estate transaction is concurrently similar yet unique in its structure and function. Proper structuring of a transaction can save a client hundreds if not thousands of dollars. An example of potential savings deals with proper structure of “Base Year” in leases for building operating expenses.
Kimball Commercial Real Estate. All Right Reserved.