How to Choose a Commercial Real Estate Broker

By | May 21, 2023

Are you looking for a commercial real estate broker but don’t know where to start? You have come to the right place, this article will help you do that. Searching for someone to help you find space for your business and negotiate a lease for you takes more than luck. You want to be sure the broker’s experience and skill level; as well as his or her personal style, is the perfect fit for YOU. In order to be thorough you will want to dig deep and gather information both about AND from him or her.

You should start by asking specific question of people who recommend a particular broker to you. For example, the person who sold you your home or your lender or perhaps other mortgage brokers who you trust.

A terrific question to ask is regarding the broker’s strong points. You may have particular aspects of space-hunting that is of paramount importance to you. Therefore, knowing this broker’s best traits can be an important part of finding this out. For instance, maybe you would like a broker that uses his or her imagination and can give you creative ideas on how to adapt a specific space to your highly special needs.

Another good question to ask is exactly the opposite: what were this broker’s weak points? Even brokers who have stellar reputations usually have some weak points or a few bumps in the road in other working relationships. Find out what these are for this recommended broker. It could be something simple like: he or she does not return phone calls or respond to emails very quickly. This is information you really should know up front. Maybe that flaw is something you cannot work with.

Most importantly; you want to ask – would they use this same broker again? The thought of asking this question might be rather silly; but actually it is more useful than you would think. You will often get a response where the person you are asking really liked a particular personal trait or professional skill that the broker has. It could make or break a deal with you whether or not to use them.

Now here are some questions to ask the brokers themselves. Of the utmost importance is, “what is your experience with commercial real estate needs like mine?” Describe the type of property you want to them. Ask how they can help you find that type. And especially – ASK FOR REFERENCES! Even if you already know this broker IS familiar with your needs; (even if they are a specialist,) It is a wise move to confirm this information; thereby avoiding a professional disaster.

The last and most important step in acquiring a new broker is to sign a contract. In that contract you must make sure every aspect of your relationship with him or her is detailed. Include sections on the payment process, the type of relationship with them (either exclusive or non-exclusive.)