How to Find a Qualified Commercial Real Estate Agent
Steps to finding a commercial real estate agent
When managing or selling a commercial property, a commercial real estate agent can not only save you plenty of time, but their expertise can help you get the best deals possible. A commercial real estate agent will “create and update listings on the various commercial real estate listing services, field phone calls and emails from prospective tenants or their agents, show the property, handle a negotiation, and facilitate a closing whether that be preparing and executing a lease document or managing an escrow through its process,” all so you don’t have too (Top 5 Reasons To Hire a Commercial Real Estate Professional). Especially if you are new to commercial real estate, an agent can navigate the world of selling and/or managing your property with more confidence and ease. While this article will focus on landlord representation, much of this can apply to a tenant or buyer’s representation as well.
What’s the difference between a real estate agent and a real estate broker?
Here are the key definitions and differences between real estate agents, brokers, and realtors, from Investopedia:
“Real estate agents are licensed to facilitate real estate transactions, are paid commissions for their sales, and work for brokerages.
Brokers are more experienced and qualified and can work as independent agents or have other agents work for them.
Realtors are part of the National Association of Realtors, a trade organization, and can hold any position within the real estate industry.”
A commercial real estate agent does not work independently, they must work under a broker. Meanwhile, a broker can work independently, so many times people opt to hire a commercial real estate broker rather than an agent. While it’s important for you to know which kind of professional you will be hiring, for the purposes of this article, agent and broker will be used interchangeably.
5 Steps to Finding a Qualified Commercial Real Estate Agent
First, make a list of exactly what you want out of hiring a commercial real estate agent. Nailing down your goals will help you find an agent/broker who has experience working with similar properties and businesses as yours, and who can understand your needs fully, which will result in a stronger partnership.
Try to find an agent/broker via a referral- consider your friends and business partners that have worked with commercial real estate agents or brokers. Ask them who they used and if they would recommend them. Ask them questions about the agent/broker’s abilities, if they were good communicators, how knowledgeable they were, how efficient they were, and if they would work with this agent/broker again.
If you can’t get a personal recommendation, look for commercial real estate agents online. Loopnet, which is a top listing platform for commercial real estate, has a section of their site where you can find commercial real estate brokers. Whether you’re looking online or asking for a referral, make sure the broker’s asset type is the same as yours. If you’re managing an office building, for example, find a broker who specializes in office space. Same with other property types. Also, make sure that any agents you hire work full time.
Once you’ve chosen an agent or broker you’re interested in working with, give them a call. Commercial property deals often take a long time, so now is the time to see if you and the agent/broker are going to be good partners and be able to work together for the long term. Don’t be afraid to ask questions! TenantBase suggests asking questions like, “What locations, cities, or specific neighborhoods are you most familiar within your practice?,” “Can you share some of your success stories?,” and “Have you ever worked with a company like mine before?” (10 Questions to Ask a Commercial Real Estate Broker). Ask about compensation and about how many other clients they have, or how many agents work in a firm- anything that will help you see if you’ll be a priority to them.
Be sure to look at the agent’s experience, client reviews, and any other information you can find on them to help inform your decision before you hire.
Sources:
https://www.commercialpropertyadvisors.com/choosing-the-right-commercial-real-estate-broker/