In the age of do it yourself high speed internet searches, the best way to make a good deal in commercial real estate may very well be to blend it with an old-fashioned phone call!
Let’s face it, everyone wants to make sure they get the best within their means. The best house, the best car, the deal.
The last one is probably the one that reigns supreme, “the best deal”.
With the digital world providing everything at our fingertips, it is quite easy to research and find whatever we need. Need a new car? Look online. Need to find a new house? Look online. Need a new office? Look online.
Once you locate what you desire, the next step is usually to pick up the phone and start your negotiations. In the world of commercial real estate (CRE), things do tend to differ. While you can, of course, call directly and speak with the property owner to begin your negotiating, it may be worthwhile to add an additional step to your process.
There are a number of benefits to speaking with a CRE broker. One of the biggest benefits would be during the search process. As mentioned, there are many resources at our fingertips these days. But, despite what people may say, not everything is online.
CRE groups have access to listing services that the public may not, such as the back end of CoStar and Loopnet. In addition, the CRE world is not very large, especially in our local Frederick market. There are properties available or coming available that we at MacRo, Ltd. learn about from our other broker friends.
The perfect space may be out there for you, and you may be missing out!
So, now that you have located the perfect space, what next? Some will thank that CRE broker for the advice and assistance and move forward on their own. This may be a perfectly fine option for some. Of course, it doesn’t have to end there. Continuing to work with a CRE broker does have its benefits as well. The broker is there to assist you with getting through the lease process.
Wouldn’t it be great to ask for a base rent of $1/per SF with a $100/ per SF Tenant Improvement Allowance and a long-term lease with no escalations and opt out clause for the tenant to trigger at any time … and get it? Sounds like the “perfect space”, right?
Part of the CRE broker’s job is to add a little reality in the picture so that the property owner/landlord will take you seriously. The broker will work with you to identify terms that can be negotiated to meet your needs, as well as satisfy the landlord. Brokerage services go beyond striking deals. We can help guide you through the search process all the way to occupancy of your new space.
The broker is there to also act the “buffer” between the landlord and tenant in the heat of negotiations. Some instances will involve two brokers, while many will only involve one.
Regardless of the route you select, it never hurts to talk with a commercial real estate broker for a few minutes. It could turn out that they help you make the best decision or steer you away from the worst. One key thing to remember at the end of the day is that landlords need tenants and tenants need landlords!
Though I know it may be “old fashioned” and not a favorite of my millennial brethren, it may be in your best interest to actually pick-up a phone and make a call to a CRE broker!
Ashleigh Kiggans, Vice President, joined the MacRo team in 2015. She plays a key role within the organization, assisting the leadership team across a wide range of initiatives, including market research, data analysis, client communications, and marketing while assisting with the sales and leasing transactional process.