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In no uncertain terms, if you are not using a professionally licensed commercial broker to buy or sell commercial real estate assets…you’re losing money. Read below to learn why.
The first thing anyone does when they want to buy or lease commercial real estate is head online to search for listings. The biggest online listing platforms available to the public are LoopNet and CoStar. Although, those platforms have their limits when you don’t have a paid subscription. Also, the information on those listings is often not kept current. An investor could end up spinning his or her wheels on properties that weren’t even on market in the first place. When you hire a commercial broker to find you commercial assets, you gain access to many listings. These are listings in your market that you would never have found otherwise. Like everything else good in life, access to listings has a price. Commercial brokers pay to not only list assets for sale on national and local listing services and sites, but to have the availability to search current listings.
Money Savings: Relocation Costs/Moving
By hiring a commercial broker, you gain access to the most current availabilities in their market. As a result, clients see real cost savings in relocation and moving costs. By having so many options and finding the “perfect space”, clients don’t have the desire to end their lease or sell their asset and move to a new space.
A brokerage is defined as “a company that buys or sells goods or assets for clients.” Knowing this, we can say that a commercial broker is most definitely expert in the act of buying or selling commercial real estate. Expert. It’s what they do, and what they only do. From the search to the closing table, a commercial broker is an aficionado of deal making.
We know the leases, we know comps, we know market value, we know cap rates, we know appreciation…we know the best price, best term and best deal that a client can get. Even if an investor has a strong business background and is knowledgeable in markets…their sole responsibility is not negotiating commercial real estate. If you were told you needed a root canal, would you do it yourself?
Money Savings: Rental Rate/Sale Price
Truly, the money savings realized from a good deal are exponential. From the hassles of being locked into a bad lease, to hidden rent escalations, to paying way over market value…the potential pitfalls from a negative sale or lease of commercial property are endless.
If there is one thing we know, it’s that cooperation in real estate drives value. To the tune of 9.6% more per square foot to be exact. Learn more about cooperation in commercial real estate by viewing the SVN Cooperation report of 2016. The commercial real estate industry is all based on relationships. There is no better connector or networker than a commercial broker.
Commercial brokers have deep relationships with local financing institutions, developers, planning boards and commissions and of course other commercial brokers. By using a commercial broker, you can be assured that whether you are purchasing a listing down the street, or across the globe, you have a local soldier on the ground.
Money Savings: Insider Deals
Through a commercial broker’s connections, clients gain access to a myriad of insider information. This information includes lending options, listings that have not yet hit market and developments coming online. These “inside tips” could be the difference in a higher purchase price, missing tax savings or not taking advantage of special interest rates.
Hopefully, if you are now at the end of this article we have successfully convinced you that it’s in your best interest to hire a commercial broker for your next investment. If you are seeking for assets in the Greater Baton Rouge area, contact one of our expert commercial brokers to help.
About Us – The team at SVN | Graham, Langlois & Legendre has over 99-years of combined experience helping clients across the Baton Rouge market get the most value out of their CRE investment. Contact one of our dedicated CRE professionals today with any questions you may have and start seeing the returns in a market that will make sure to give today, tomorrow and for the extended future. To reach us, you can call us at 225.367.1515 or you can send us a message on our website. You can also follow us on Twitter at @svngll or on Facebook.