Why having a commercial real estate broker will save you time and money.

Darrin D. Dufresne

Senior Vice President

Gannett Peak Partners, Inc.

ddufresne@gannettpeakpartners.com

gannettpeakpartners.com

Topic: Commercial Real Estate

Let’s face it… today’s economy is challenging to say the least. Business owners and CEO’s are under extreme amounts of pressure to watch the bottom line. A company’s commercial real estate costs are typically the second largest line item expense, and normally equates to 30% to 40% of a companies overall budget. Ask yourself the following questions:

First – Do you have expertise to research the real estate market, including opportunities that are currently available, as well as those which are becoming available in the future?

Second - Do you know current market conditions, where lease rates, concessions, tenant improvements, etc…. are being achieved in your office, warehouse, or retail facility? Do you know current landlord enticements being offered if your lease is up for renewal, and they want to keep you as a tenant so the space does not go dark?

Third – Do you have the time and expertise to deal with several different brokers and landlords and analyze different space options while handling all of your other day to day job responsibilities?

If the answer to any of these questions is no, then you need a commercial broker to assist you through the process, and add value to your organization. Below are several simple reasons to hire a commercial real estate broker.

Experience

 Nothing in business can replace years of hands on experience. You may have access to real estate information per the internet, newspapers, etc., but the benefit of hands on experience is priceless. A seasoned commercial real estate broker who has lived the ups and downs of the market, and has gone from beginning to end with hundreds of transactions adds value to your negotiations.

Market Knowledge

Market conditions are constantly changing within the commercial real estate sector. Opportunities are lost and found on a daily basis. The commercial real estate industry is very proprietary on sharing information. During a year a commercial broker processes hundreds of opportunities through various sources, while seeking out the best options to accommodate their clients. 

Creating Leverage

A good commercial broker will create leverage with your new space requirement or upcoming renewal by having several viable space options available for review. They will launch a competitive bid and prevent you from being a captive audience to one landlord. The result will be concessions and incentives that add value to the company’s budget cost.

Time Management

Executives are busier and higher demands and expectations are being demanded than ever before in the marketplace. By engaging the services of an experienced commercial real estate broker, owners and managers can maintain focus on their business while obtaining the benefits and guidance of a commercial real estate professional.

Negotiations

Last, but not least…negotiations. The art of negotiating in a specific industry is honed over years of transaction work. Successful negotiation of a commercial 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 “bad guy” with the landlord, while the tenant’s relationship remains in good standing.

Commercial real estate is complex and expertise is needed in structuring advantageous lease or purchase terms. You need to have your fingers on the pulse at all times in a constantly changing market. Hopefully this article will be beneficial when you are active in the commercial real estate market and are in need of representation.