As a CRE investor, navigating the intricacies of the commercial real estate (CRE) market requires a skilled, trusted partner by your side. Selecting the right brokerage professional is akin to choosing an anchor for your investment vessel — a critical decision that will impact your venture’s stability and success. Keep reading to learn about the qualities you should seek in a CRE brokerage to ensure a smooth and rewarding CRE journey.
Market expertise
In the dynamic CRE world, your broker must have a comprehensive understanding of your specific market. Look for a brokerage with an established track record in your target area. They should possess an intimate knowledge of local trends, vacancy rates, and recent transactions involving your property type.
This local market intelligence allows them to identify undervalued opportunities and negotiate with a clear understanding of comparable properties. Partner with a broker who leverages data and market research, property analyses, and relevant statistics to inform their strategies and recommendations.
Communication and negotiation
CRE is a people-centric business. Every transaction hinges on human connection. Successful brokers understand the value of networking and relationship building. They foster strong bonds with past and present clients, recognizing these connections provide the lifeblood of their careers. It’s about empathy, understanding, and seeing things from your perspective — not theirs.
And let’s face it. The complexities of CRE transactions — whether you’re a novice or have a long history as an investor — can feel overwhelming. Your ideal brokerage should excel in translating concepts into easily understandable terms. Look for a team that fosters open communication and reiterates its commitment to keep you in the loop from start to finish. They should be readily available to answer your questions professionally and timely.
Whether buying, selling, or leasing a property, you’ll benefit from a skilled negotiation team. The broker’s ability to advocate for your best interests and navigate intricate negotiations is incredibly valuable. The brokerage firm you work with should have past success securing the best possible terms for its clients.
Relationship building and trust
A successful partnership starts with active listening. Your broker should take the time to understand your unique needs and investment goals. They should ask insightful questions and demonstrate a genuine interest in your priorities and concerns. A collaborative approach ensures they tailor their recommendations to your specific situation.
Experience speaks volumes, too. Look for a brokerage with a successful track record in your desired property type and transaction (buying, selling, or leasing). Positive testimonials from former clients and an impeccable industry reputation indicate their capabilities.
Another key element to a strong foundation of your partnership? Trust. The ideal CRE professional builds trust through transparency, honesty, and ethical conduct. You should feel comfortable confiding in them and confident in their representation. The essential ingredients for fostering a long-term, successful partnership? Open communication and commitment to your best interests.
Traits of a well-rounded team
The CRE process rarely runs smoothly and without a hitch. Unexpected challenges or issues can pop up at any time during a transaction. Your broker should be resourceful and adept at finding creative solutions to overcome these hurdles. Look for a team that’s comfortable thinking on its feet and adapting to changing circumstances.
The CRE businesses must always find ways to stay ahead of the curve if they want to thrive. A brokerage committed to ongoing professional development supports its team members in their quest to stay updated on industry trends, new regulations, and potential market shifts. Continuous improvement and knowledge-building empower them to provide you with the most up-to-date information and strategic advice possible.
You deserve a brokerage that reflects your professionalism throughout the transaction. Look for a team that’s reliable, dedicated, and responsive to your needs. Their work ethic and commitment to excellence should inspire confidence and a sense of partnership.
The intangibles
While technical knowledge and market savvy are essential for all brokers, exceptional soft skills elevate a good broker to a great one.
You’re entrusting a significant portion of your investment capital to a CRE broker. Integrity is paramount — it’s the bedrock of the client-broker relationship. A broker with unwavering integrity prioritizes your interests above all else, acting with transparency, honesty, and a commitment to ethical conduct.
CRE success rarely happens overnight. Top performers are those with a solid work ethic who’ve built their careers on discipline and dedication. They go the extra mile, channeling energy and passion to secure the best deals for their clients.
The CRE industry is a numbers game; rejection is an inevitable part of the process. Assemble a group of brokers in a room, and you’ll probably gravitate toward those emitting infectious, positive energy — a characteristic that attracts clients and serves as a shield against disappointment. These brokers understand that setbacks are temporary, and their optimistic outlook inspires them and their colleagues.
Questions to ask your potential CRE broker
Ask the following questions to gain valuable insights about a CRE broker’s experience, approach, and suitability for your goals:
- How many years of CRE experience do you have, and what specific property types have you worked with (industrial, retail, healthcare, office, etc.)?
- What’s your track record of success? Inquire about past deals closed, deal size, and client satisfaction.
- What’s your market knowledge? Assess their understanding of your target area’s current market trends, vacancy rates, and rental rates.
- What’s your client service philosophy? Asking this question helps you to understand their approach to communication and responsiveness and how they’ll keep you informed throughout the process.
- What’s your marketing strategy? Discuss their plan for marketing your property (if you’re selling), including online channels, targeted outreach, and broker networks.
- What’s your marketing budget? If they manage the marketing budget, ask them to clarify allocation and cost breakdown.
- What’s your approach to negotiating? Evaluate their experience and strategies for negotiating favorable terms on your behalf.
- What’s your compensation structure? Ask them to clarify their commission fees and any additional costs associated with their services.
You can also ask them to answer questions like:
- How do you stay current with industry trends and regulations?
- Do you have experience working with investors like me (a newbie vs. a seasoned investor)?
- How will you handle unexpected challenges during the transaction?
- Can you explain how you’ve gone the extra mile for other clients?
Remember: the best CRE brokers aren’t just “dealmakers;” they’re trusted advisors on your investment journey.
Are you a commercial real estate investor or looking for a specific property to meet your company’s needs? We invite you to talk to the professionals at CREA United, an organization of CRE professionals from 92 firms representing all disciplines within the CRE industry, from brokers to subcontractors, financial services to security systems, interior designers to architects, movers to IT, and more.
