Before engaging in commercial real estate buying or leasing for a property such a warehouse, it is of utmost importance to pick the right real estate broker to help you go through the rough process. Investing in commercial real estate property is a huge undertaking as the process can easily become risky, expensive, and even time-consuming without the right professional assistance. Therefore, if you are considering buying or leasing a commercial property such as a warehouse, you should seek the services of a reputable commercial real estate broker for a hassle-free process. However, with the numerous commercial real estate brokers in the market, finding a trusted one can be quite overwhelming especially if you are new in the industry. In this regard, you may need to need to consider some aspects as will be discussed below to make an informed choice.
One crucial factor you should consider when choosing a commercial real estate broker is the level of experience in the industry. Before settling on a commercial real estate broker, you should keep in mind that commercial real estate is more complex than residential real estate. You should, therefore, be wary of a residential real estate broker claiming to offer exceptional commercial real estate brokerage services as their aim is to make more money. You should, therefore, look for a real estate broker with many years of experience in the industry and a specialty in industrial and commercial properties to be assured of a smooth transaction. Such a broker is able to understand and interpret crucial financial documents such as profit and loss statements, third-party contracts, rent rolls as well as any other documents involved with each transaction. If the broker of your choice is unable to figure out the net operating figure nor tell the coverage ratio of the debt service of the commercial property you are looking to invest in, you may need to look for another broker.
Secondly, you should consider the competency of the broker’s staff before engaging them. By ascertaining the competency of the broker’s staff, you will be able to determine whether they are capable of handling your deal with efficiency as well as professionalism. A reputable commercial real estate broker will have a team of staff that has comprehensive knowledge about a specific area and the ability to make the transaction smooth. They should also have considerable experience in your type of product. There is a huge difference between commercial properties such as retail and office and industrial properties. The differences are in terms of their physical aspects, lease structures, terms, and conditions as well as operating expenses. You should, therefore, ensure that your preferred commercial real estate broker has a strong track record of handling transactions in the type of commercial property you intend to buy or lease to be guaranteed a smooth process.
The other tip for finding a trusted commercial real estate broker is to check their current listings. You should search the sale and lease listings of the broker you intend to settle on to establish the type of property they deal with. This will save you from the hassle of moving from one broker to another in search of one that specialized in your type of commercial property. A reputable commercial real estate broker will have a listing for a wide range of commercial properties including warehouses, office space, distribution buildings, manufacturing plants to mention just a few.