Commercial real estate properties are so important for the sustainability and structure of most companies. That’s why buying them can often be a time-consuming and costly endeavor. To make the process significantly easier, you’ll need a great commercial real estate broker to work on your behalf. Here are some questions you can ask to make sure you choose the right one.
What to Ask a Commercial Real Estate Broker
How Long Will the Process Take?
When you’re buying a commercial real estate property, due to all of its intricate details, there’s often a long waiting period between the appraisal and the actual closing.
Usually, commercial real estate brokers will each provide alternating average time estimates for how long the buying process will last. If there’s a specific deadline that you hope to acquire the property, this can be an important piece of information.
Those with longer process times may not seem as desirable but- if you ask the right questions- you’ll be able to find out why that’s the case. Sometimes, certain properties take longer to close than others. You just need to make sure that the estimated closing date fits your idealized timeline for attaining the new property.
What is your Experience with Tenants like Me?
Every company is different. If a broker has been in the business long enough, then chances are that they’ve handled a variety of companies, but that doesn’t guarantee they’ve worked with one like yours.
If you’re looking to buy a commercial property, you’re going to want to work with a broker that’s accustomed to working with clients similar to you. It should ease any anxiety you have about creating a relationship with them.
However, in the case that they don’t have any relevant experience, ask some follow-up questions about how they would handle a property for a company like yours. If their answers satisfy your individual needs and you feel comfortable with the broker, then proceed.
How Will the Broker be Compensated?
Depending on the real estate agency, there’s a few different ways that your broker will be compensated for their work. This can affect how much money you will end up paying for the services they provide in attaining your commercial property.
Most of the time, brokers aren’t salaried and make all of their compensation off of any commission that they make on your property. When a broker makes their profit this way, features like rent price, lease length and total square footage can factor into how much they will receive.
Sometimes, they won’t even receive commission until the property is closed on. Just make sure you know how your commercial real estate broker is being compensated, and how it will affect how much you end up paying.
If you ask these questions and receive the answers that you’re looking for, then you’ve potentially found the ideal commercial real estate broker.
