Hiring a Commercial Real Estate Broker
San Diego Daily Transcript (Dec 04)
Submitted by: Bryan Cunningham of Flocke & Avoyer Commercial Real Estate

The commercial real estate brokerage community in San Diego is as diverse as the market itself. As a player in the market today; whether as a prospective tenant, a landlord, a property owner looking to sell, or as a 1031 Exchange buyer, you may select from a variety of brokers to assist you in your real estate needs. So the question becomes, “Who do I hire, and how do I find them?” Determining how to find a qualified broker can be a challenge.

The first thing to look at when selecting a broker is identifying who is active in the market. From a leasing or sales perspective, look and see who controls other properties in the immediate area. Many owners don’t like hiring the broker who is leasing or selling the property across the street because they feel it is a conflict of interest. However, brokers that handle several properties in the neighborhood usually have a better understanding of the marketplace. Familiarity with the area also lends to a shorter learning curve when it comes to identifying prospective tenants or buyers.

From a Purchasing or Tenant Representation specialist perspective, ask your broker from the beginning how he or she will identify potential properties. Finding the right property takes patience, timing, and an aggressive broker who knows how to set you apart from the competition. It is not always necessary to hire a tenant rep specialist or investment specialist, though that can certainly be beneficial in the right situation. It is important that you find someone who has the time and desire to uncover opportunities that may not be obvious or readily available, and then negotiate the best deal for you without losing the site to another prospective tenant or buyer.

Like any relationship, your relationship with your broker should be based upon trust. You need to be comfortable with your broker and his or her strategy from the start. Don’t hesitate to ask around and find out about the person’s track record and reputation before making a commitment.

Once you have selected a broker, give him or her a legitimate chance to benefit you. Real estate is a tricky business and you will almost always run into some adversity during your real estate transaction. Trying to switch brokers at the first sign of a potential hiccup can slow the process and make it more difficult for you to successfully identify a site or negotiate a deal. Both parties should enter the arrangement with a long term business relationship in mind, and look to protect that relationship at all times.

In today’s market of high prices and low availability, having the right real estate professional to assist you is more important than ever. When selecting a broker, keep in mind you are choosing a partner who should approach each transaction the same way that you would. By picking the right broker, you are putting yourself in a much better position to accomplish your commercial real estate objectives.