To get top dollar for your commercial property, you market it to the world. A recent MANSARD survey of over 1,000 investors revealed that commercial broker to commercial real estate broker networking is believed to be the number one activity a commercial real estate broker undertakes to fill vacancies or sell property.
Yet commercial real estate investors continue to hire commercial brokers who market their property to an exclusive list. If you choose that route for confidentiality, read no further.
Others, I’ll ask you, ” Who’s really getting top dollar? You or your commercial broker? ”
Commercial real estate brokerages developed to represent owners of real estate. Offices competed for property listings and worked to lease or sell their inventory to their commercial real estate investor and tenant prospects. Over time, some offices chose to cooperate with one another, share fees, and collaboratively sell or lease a commercial property because it helped them perform faster, saving their clients money while delivering results and the dollars they desired.
The more people who worked to lease or sell your commercial property, the better your chance of success.
Other commercial real estate investment companies believed they possessed the complete list of tenants and commercial real estate investors. They maintained that they had the best channel to market and as long as they did, owners would come to them to promote their property opportunities, keeping 100% of their fees and controlling their slice of the action.
Old habits die hard. Some commercial real estate companies continue to cooperate, others do not. The ones that don’t, send your opportunity to their market and tell you they’re exposing it to the world.
Here’s why this matters to you: your commercial real estate broker’s responsible for placing loyalty to your interests above his own.
This means exposing your property opportunity to the largest possible audience to generate a deal. And if you stand to make more money on a deal going in one direction vs. another, your commercial real estate broker is obligated to give you the best advice to suit your needs, not his own–even if that means he makes less and you make more.
The next time you’re meeting with your commercial broker, ask him whether he cooperates with other brokers and markets openly. It may mean a faster, more lucrative transaction for you.
About the Author: Jeremy Cyrier, CCIM is the founder/principal of MANSARD Commercial Properties and member of the CCIM Institute faculty. He delivers thoughtful, large scale commercial real estate solutions to the individual challenges owners and tenants face. Jeremy Cyrier, CCIM was elected by Banker & Tradesman as one of its New Leaders in 2009. You may reach Jeremy at Jeremy@Mansardcre.com.
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