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How To Choose a Commercial Real Estate Firm
In commercial real estate as elsewhere speciality and marketing niches are a big part of the picture.
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Business New Haven
11/22/1999
By: Priscilla Searles
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For businesses looking for new space, the challenges can be great - and the process often frustrating. Are you looking to relocate to a new area? Do you want to lease or buy? Before you go out and talk to a real-estate firm, you need to develop a clear picture of what you want - or at least what you think you want.
Conversely business selling or leasing properties also need to have a clear idea of what it will take to make the perfect match. In commercial real estate as elsewhere speciality and marketing niches are a big part of the picture. Making a list of your requirements is a good place to start. It's often the details that get overlooked when identifying potential locations - which is one very good reason to go to seek professional assistance. But no one can help you fulfill your needs if you don't give them complete and accurate information. Remember you are paying for expertise so don't be afraid to ask questions. Does your business location require a high traffic area, close to major interstate highways? Will you need the ability to expand? How much parking will you require for customers? And don't forget your staff and their needs.
Once your list has been largely completed, you need to find a real estate firm to help you choose the right property. Going to a friend or an acquaintance can be a big temptation, but don't. You're taking on a major financial commitment, and mistakes can be costly - or sometimes even fatal - to a business. Go to a professional.
Do you let your fingers do the walking through the business-to-business yellow pages? Well, that's a perfectly good place to start - but you need to know what you are looking for.
What type of information does the company have on the marketplace? This will give you an idea as to their knowledge as well as inform you. Do they know the costs of other properties, the taxes in the area, recent transactions. etc.
Many professional commercial real-estate firms have professionals within their organizations with the designation CCIM. It's the master's degree of the commercial real-estate world.
CCIM stands for Certified Commercial Investment Member. Conferred by the Commercial Investment Real Estate Institute, CCIM designation requires 240 hours of graduate-level curriculum and two years of study. Having completed the course of study, the CCIM-holder is recognized as a professional in commercial real estate brokerage, leasing, asset management, valuation and investment analysis. keep in mind t hat this designation assures you have a professional but that alone isn't enough.
Choosing a firm as a buyer or seller that offers the expertise you require is the most important aspect of your decision. Many firms appear to be generalists but are they? How many retail stores have they leased. How much downtown office experience do they have. What type of industrial clients do they have. The right choice is about the right match for your needs
If you are going into a new and unfamiliar community, you will need someone familiar with the area. That's why you will want to build a good business relationship with your real-estate professional.
Choosing a business location is too important to place in the hands of someone you don't like.
Don't forget that written list of your requirements - it will help a real estate firm narrow down the possibilities. You may not be sure what direction you want to go in - for example, whether to purchase or lease or buy or lease. Commercial real estate firms can point out the advantages and disadvantages of each and every option and help you get a clear picture of the market. The real estate market literally changes every day and not every firm is on top of those changes.
Seek an agent that can evaluate issues as the time value of money, analyzing investment performance, analyzing the best use of a site, property supply and demand, risk, lease-versus-purchase analysis, market demographics, negotiation, tax implications and financing options.
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