“Why hire a broker? I’ve got friends in real estate and can call landlords myself; and they’ll probably cut me a deal for not having to pay the broker’s commission.”
Unfortunately, there are a number of people who have had bad experiences working with brokers, promoting the stigma that working with brokers is a “waste of time” — even when their services are “free.” And because there’s no way to find and qualify brokers online (or understand what services they should be providing), a growing number of companies forego hiring a broker altogether.
But unless you’re a small company looking for short-term swing space, hiring a top-qualified
broker advisor — specific to your market and industry — is a value-add not only to your next office lease, but to the future of your company.
Here are 6 reasons why:
- They develop real estate business plans. They take the time to intimately understand your company’s requirement to strategize a real estate growth plan that matches your company’s business plan.
- They educate. They have worked for years in your local market, and even submarket, often as both a listing agent and tenant representative. As a result, they will have personal knowledge of individual submarkets, buildings, and landlords as well as a sense for historical market trends.
- They create an auction. They will identify the market’s top options for your requirement and strategically conduct an auction for your lease, driving costs down and concessions up.
- They have relationships. They have an extensive network of service providers (lawyers, architects and general contractors) that they can recommend and call on at any time.
- They make life easier. They provide checklists, tools, documents and assistants to handle your paperwork and project management, allowing you to avoid the headaches and focus on decision-making.
- They have experience. They understand the important business and legal terms of a lease, as well as the financial impact on your business, both from a cash flow and a tax perspective. They understand the construction process, construction costs and building operating expenses — what is reasonable and what is not.
Bonus – They’re “FREE.” The landlord pays your tab for your broker’s commission; and although the landlord factors that commission payment into the cost of your rent, they’re far more likely to be negotiated down by a qualified advisor than a tenant without one.