Commercial Real Estate Brokers in Boise
Many people are tentative to hire commercial real estate brokers because they don’t know how a broker helps buyers, sellers, landlords or tenants. The role of a commercial real estate broker depends on who they’re serving. The broker has the sole interest of whoever hired them.
If you’re looking to buy, sell or lease commercial real estate in Boise, working with a commercial broker ensures you’ll get the best return on investment and achieve the best deal. Commercial brokers work differently than residential real estate brokers, so it’s important to know the difference.
What is a commercial broker?
A Commercial real estate broker assists with the transactional side of buying, selling, and leasing commercial real estate. They specialize in commercial property typically used for business purposes. A good commercial broker will have established relationships with business owners, tenants, and landlords in their locality. Look for a broker that has a firm understanding of the demographics of their area and a comprehensive understanding of your business goals.
A commercial broker ensures the party they’re representing attains the best deal possible in a commercial real estate transaction. Commercial brokers have domain knowledge the average person doesn’t have — that is why you want them on your team. A commercial broker can be hired by a buyer, seller, or tenant to help negotiate the best deal for that specific client. They represent who hired them. If you’re engaging with a broker who represents a landlord, understand that the broker has the landlords interests at heart. When it comes time to sign on terms and conditions of a commercial real estate transaction, a commercial broker will work to ensure the deal is in the best interest of their client in the short and long term.
What is the difference between a commercial broker working for a landlord and a tenant?
Brokers work with both landlords (listing agent) and tenant representatives. The role a commercial broker plays is different for a landlord/listing agent and a tenant representative. A commercial broker can also represent both a landlord and a tenant at the same time — this is fairly common.
When a commercial broker works with a landlord/listing agent, they are hired to ensure that they get the best deal for the landlord. Whether it is sale agreements or leasing agreements, the broker is pushing for the interests of the landlord. The broker will often search for tenants or buyers of the property and negotiate a deal that favors the landlord. The broker receives a commission from the landlord, which will be a percentage of either the sale or term of the lease. In this way, the brokers incentives are aligned to make the landlord have a higher sale price or more valuable long-term lease agreement.
The other side of the coin is when tenants hire a commercial real estate broker to represent them as an agent. The broker works with the tenant’s best interests in mind, negotiating terms and conditions that favor the tenant in the transaction. For example, a tenant looking to find a lease that is ideal for and SMB office space would hire a commercial real estate broker to ensure that the space is at the lowest price the landlord will go to.
Brokers can also work as a half-way man for both the landlord and the tenant, to ensure a fair deal is made with appropriate terms and conditions laid out for both parties. In situations like this brokers often act as the bridge between landlord and tenants. This is the real value of a broker — their network.
How do commercial real estate brokers help property owners?
Property owners often don’t hire a commercial real estate broker due to the perceived increased costs. What property managers don’t weigh is the time it takes to find tenants for their listings. Time is a resource along with money and mental energy. When owners hire a commercial broker they are delegated time and mental energy to the broker which often outweighs the monetary costs. Further, brokers help landlords secure contracts that have great values to them.
Commercial brokers are experts in negotiating commercial real estate deals. They work with landlords to ensure contracts favor the landlord. If a landlord is seeking tenants, it is the role of a commercial broker to find the most suitable tenants and secure a lease or rental agreement in the best interest of the landlord or listing agent.
In contrast, if a property owner is looking to sell their commercial real estate asset (a disposition), they will conduct research to find the best listing price in alignment with the market, seek the right buyers, and therefore find the best return on investment in the final deal. But a landlord will spend significant time doing this market research and often need to buy access member-only databases. Commercial brokers have access to these databases already, so the landlord can tap into the brokers resources by engaging them.
How do commercial real estate brokers help tenants or buyers?
A commercial broker representing a tenant will seek to find the best lease or rental deal for the tenant. This includes finding a location, negotiating a lease and doing demographic research for the tenant or buyer. Brokers save tenants time, save them money by admining the negotiation, and allow tenants to tap into their expertise and network.
For those looking to purchase commercial real estate, often known as an acquisition, a commercial broker plays a crucial role in searching for a property with their access to member-only databases and expertise on the locality of purchase. Further, a commercial broker will play a key role in negotiating the terms of a sale and therefore securing the best price for the buyer.
How do I find a commercial real estate broker?
At KZB Real Estate we offer complete commercial brokerage services for the Boise area. This includes both landlord and tenant representation. If you’re outside of Boise, commercial real estate brokers can be found via a simple internet search. To ensure you are working with an experienced broker, make sure you meet with them either in person or on the phone, and discuss your goals, budgets, and long-term needs to make sure they align.
Visit the KZB Real Estate website here, to learn more about our commercial real estate brokerage services and contact us with any questions you may have.
How do you sell a commercial property without a realtor?
We strongly recommend you don’t engage in commercial real estate deals without a representative. Working with a commercial real estate broker ensures you get the best possible deal for your real estate asset. Whether you are buying, selling, or leasing, it is important that conditions, terms, and fees are negotiated within your best interests. Commercial brokers are known for their expert negotiation skills, experience in the local market, and ability to apply specialized market tactics to secure the best buyers, listing prices, and rental/lease deals possible. It’ll save a significant amount of time and money in the long term when conducting commercial real estate transactions.