This post originally appeared on tBL member Block Real Estate Services (BRES)'s blog Official Blog of Block Real Estate Services (BRES) and is republished with permission. Find out how to syndicate your content with theBrokerList.
Understanding the basics of how commercial real estate works will make the process of leasing or buying much easier.
Whether you are in the market to sell your small retail space or lease an entire office building for your company headquarters, a licensed commercial real estate professional can help you every step of the way.
How exactly does the commercial real estate industry work?
Let’s break it down. Owners of commercial real estate will hire an agent to lease or sell the property on their behalf. The commercial real estate agent will draw up a listing agreement, which allows the agent to make actions on behalf of the owner. All parties sign the listing agreement. Once the property is leased or sold, a commission is paid to the agent. It’s that simple.
How do commissions work?
Commercial real estate agents are paid a commission when a lease is signed. The owner of the property will pay the agent half of the commission when the property is leased and half when the property is occupied. The rate of the commission is calculated as a percentage of the value and ranges between four and six percent. Commissions are only paid out if a lease or sale is successfully executed.
Why do I need a broker?
Brokers are a great resource for finding the right space for your needs and providing advice and guidance through the leasing process. Additionally, they are experts on the area, the community and availability.
How do I hire a broker?
The best way to find a broker is to hire them as your exclusive tenant representative. Once a representation letter is signed, the broker will be dedicated to finding the perfect property for your needs.
Block Real Estate Service, LLC (BRES)
is a full-service commercial real estate company managing over 33 million square feet of retail, office, industrial, and multifamily properties for equity partnerships and third party owners. If you are interested in finding the right agent for your needs, start by clicking here