The value of the commercial real estate broker: What is takes to sell and their role in the transaction

The purchase or sale of your commercial property is the most important investment sale of your life. What does it take to sell a commercial property and what is the role that a competent commercial real estate broker plays in the transaction? Finding the property, or finding the buyer is only a small piece of the puzzle.

What to Consider in the Selection Process

If you own, or are searching for a commercial property, hire a broker who specializes in commercial property. Hiring a residential agent, or a residential agent who does “some� commercial, is like going to the foot doctor when our eye hurts. Ask the broker what specific types and how many transactions they have closed. Many residential brokers who take commercial listings are unable to properly evaluate them and do not understand how to get them closed. A competent broker who specializes in commercial real estate will have developed relationships with the the major real estate players in the area, with local and government officials, and with people in related businesses whose knowledge can be tapped into when answers to tough questions are needed!

Expertise

Expertise includes an understanding of the market, the competition you are facing, and knowledge of zoning issues. A broker who understands the issues of a particular area can be of great value. In commercial sales it is essential to understand how the property can be used. I have seen several transactions where after the purchase, the buyer found out the property could not be used for what they intended.

The Role of the Exclusive Listing Broker

What does it really mean to have an exclusive broker representing your interests as a seller? The listing broker is in charge of monitoring or managing the transaction, similar to the role that the office manager plays in making sure that everyone is doing their job. The broker, as the manager of the transaction, knows who is visiting the site and keeps records of this for you. When a “For Sale By Owner� sign is put in front of a commercial property, most of the calls the owner will receive will be from the brokers. Therefore, it is most likely that a broker will be involved in the transaction and have to be paid anyway. That being the case, you may as well pay someone who will give you the kind of service that should go along with this payment. Problems arise on a consistent basis that need to be solved. An broker experienced in commercial transactions knows how to solve these issues. The broker’s job is to understand the business issues, while the lawyer’s job is to understand the legal issues. The exclusive broker will be there to make sure everything is running smoothly, field all questions, assist you through the entire process from beginning to end and take total care of you and your transaction. An effective broker knows how important it is to work alongside your attorney. Brokers who know how to effectively work alongside attorneys, help to establish a very strong team. The truth of the matter is that a commercial closing can be very complicated and it takes a team of professionals to enable a transaction to come to a close.

Many property owners take the view that there are plenty of brokers out there or that they can do it themselves. Here are some good ideas to consider:

1. The broker can assist the property owner by having developed relationships with planning or zoning board officials who can be a great help.

2. Since commission may have to be paid anyway, why not, for the same price, have someone to manage the sale of leasing of your property?

3. Did you know that when there is no listing broker and no one to manage or keep track of who has seen the property there is a chance of having more than one broker make a claim for commission on your property?

4. Hiring an exclusive broker guarantees that you will have a broker who is representing your interests!

5. Time is money. A good broker will know how to get your property sold quickly and for the highest price!

Who’s Looking Out For You?

Hiring a broker who has good relationships with other brokers is essential. Unless there are specific issues involved where the property listing needs to be kept private, your listing broker should be willing to immediately put your property out to other brokers and be willing to co-broke. It is in your best interests to have the largest pool of potential buyers available to you at all times. Sending your listing out to other brokers is a great way to accomplish this. When a broker is liked and has rapport with other agents, that translates into your property receiving the greatest exposure and the greatest chance of being sold quickly.

This article, written by Lynn Teger, President of Teger Commercial, LLC, was published in both the New York Real Estate Journal, Hudson Valley section and the Hudson Valley Business Journal.

Teger Commercial is involved in the sales and leasing of commercial space in Rockland County and has access to listings that may or may not be shown on this website, including but not limited to:  New City Office Space; New City Industrial Space; New City Retail Space; New City Flex Space; Nanuet Office Space; Nanuet Industrial Space; Nanuet Retail Space; Nanuet Investment Property; Nanuet Flex Space; Pomona Office Space; Pomona Industrial Space; Pomona Retail Space; Pomona Investment Property; Pomona Flex Space; Blauvelt Office Space; Blauvelt Industrial Space; Blauvelt Retail Space; Blauvelt Investment Property; Blauvelt Flex Space; Chestnut Ridge Office Space; Chestnut Ridge Industrial Space; Chestnut Ridge Retail Space; Chestnut Ridge Investment Property; Chestnut Ridge Flex Space; Clarkstown Office Space; Clarkstown Industrial Space; Clarkstown Retail Space; Clarkstown Investment Property; Clarkstown Flex Space;  Congers Office Space; Congers Industrial Space; Congers Retail Space; Congers Investment Property; Congers Flex Space;  Garnerville Office Space; Garnerville Industrial Space; Garnerville Retail Space; Garnerville Investment Property; Garnerville Flex Space; Haverstraw Office Space; Haverstraw Retail Space; Haverstraw Industrial Space; Haverstraw Investment Property; Haverstraw Flex Space; Hillburn Office Space; Hillburn Industrial Space; Hillburn Retail Space; Hillburn Investment Property; Hillburn Flex Space;  Monsey Office Space; Monsey Industrial Space; Monsey Retail Space; Monsey Investment Property; Monsey Flex Space; Orangeburg Office Space; Orangeburg Industrial Space; Orangeburg Retail Space; Orangeburg Investment Property; Orangeburg Flex Space;  Orangetown Office Space; Orangetown Industrial Space; Orangetown Retail Space; Orangetown Investment Property; Orangetown Flex Space;  Pearl River Office Space; Pearl River Retail Space; Pearl River Industrial Space; Pearl River Investment Property; Pearl River Flex Space; Piermont Office Space; Piermont Industrial Space; Piermont Retail Space; Piermont Investment Property; Piermont Flex Space;  Ramapo Office Space; Ramapo Industrial Space; Ramapo Retail Space; Ramapo Investment Property; Ramapo Flex Space; Rockland Office Space; Rockland Industrial Space; Rockland Retail Space; Rockland Investment Property; Rockland Flex Space; Sloatsburg Office Space; Sloatsburg Industrial Space; Sloatsburg Retail Space; Sloatsburg Investment Property; Sloatsburg Flex Space;  Spring Valley Office Space; Spring Valley Industrial Space; Spring Valley Retail Space; Spring Valley Investment Property; Spring Valley Flex Space;  Stony Point Office Space; Stony Point Industrial Space; Stony Point Retail Space; Stony Point Investment Property; Stony Point Flex Space;  Suffern Office Space; Suffern Industrial Space; Suffern Retail Space; Suffern Investment Property; Suffern Flex Space;  Tappan Office Space; Tappan Industrial Space; Tappan Retail Space; Tappan Investment Property; Tappan Flex Space; Thiells Office Space; Thiells Industrial Space; Thiells Retail Space; Thiells Investment Property; Thiells Flex Space;  Tomkins Cove Office Space; Tomkins Cove Industrial Space; Tomkins Cove Retail Space; Tomkins Cove Investment Property; Tomkins Cove Flex Space;  Valley Cottage Office Space; Valley Cottage Industrial Space; Valley Cottage Retail Space; Valley Cottage Investment Property; Valley Cottage Flex Space;  West Nyack Office Space; West Nyack Industrial Space; West Nyack Retail Space; West Nyack Investment Property; West Nyack Flex Space; West Haverstraw Office Space; West Haverstraw Industrial Space; West Haverstraw Retail Space; West Haverstraw Investment Property; West Haverstraw Flex Space.