Why It’s Important to Work with a CRE Broker
With the proliferation of apps in the marketplace that connect buyers or renters directly with real estate sellers, you may be tempted to “go it alone” when attempting to buy or rent commercial properties. And sometimes, certain people with the right skillset may be able to complete the process successfully on their own or with the help of a few smartphone apps. However, the majority of people will miss out on some key benefits if they decide to take that approach.
The occupation of CRE broker has been around since there was first commercial property to sell. And there’s a few key reasons why the profession first began. A CRE broker has experience, expert knowledge, and skills that you may not have. Here’s why you need these five key qualities a commercial real estate broker can offer you.
Oftentimes a CRE broker will specialize in a region or even a city. This is because the commercial real estate market can change drastically between regions, states, counties, and cities. Selling a commercial property in California is very different from brokering a CRE deal in Frederick, MD. This is not only because the laws can be different based on state, but also because the market is different.
Washington, DC and Baltimore, MD are both larger real estate markets – they’re a bit different than the markets in Frederick and Hagerstown. Both Frederick and Hagerstown also have lots of historic buildings which have their own special laws in regards to building preservation and codes.
A quality CRE broker will know the market in the city they specialize in. They’ll be able to tell you when the best time to sell is, or in what neighborhoods you should find your next commercial property or what industry. This is something that can’t be replicated with a few google searches or by reading a book or two. Commercial real estate brokers specialize in the particular markets because they have the experience to know those markets inside and out. Because of this, they’re able to interpret information and trends in the market in ways that a google search won’t be able to.
A CRE broker with a good amount of experience has been there and done that. Most likely they’ve bought or sold the type of property you’re looking for a few times over and know exactly what a good deal looks like or which red flags that you should watch out for.
Depending on the type of property that you’re buying, there can be different challenges. For example, when buying a warehouse property for manufacturing equipment or a distillery, you need to be wary of issues like climate control and how the property handles plumbing or electricity. Does it have the power supply that you need?
But when you’re looking to purchase a building for office use, your concerns may be very different. Instead of worrying about power supplies for manufacturing equipment, you’re worried about the number of conference rooms you’ll be able to fit, or the build out it will need for the lobby to appear luxurious enough to attract corporate clients.
Commercial real estate brokers can guide first time clients in some factors they’ll want to consider when purchasing the right property for their needs. A CRE broker may be able to guide a first time investor from purchasing a plot of land and steer them towards a light build out instead. However, for a more experienced investor, a CRE broker can help find a promising property with the right amount of challenge.
Connections in the Market
Part of the reason why commercial real estate brokers are so helpful are their connections in the field. CRE brokers will know industry leaders who might be interested in selling their building or have the business card of the right buyer for your building. With the years of experience a CRE broker has in their specialized region, they know who the major players are and how they can help you sell or buy the right building.
Not only will a CRE broker’s connections help you find the right buyer or seller, they’re also able to help you after the initial buying/selling is over. Where do you look to find a developer with the right skillset for the buildout you need? Your CRE broker may know someone. How about to find the right HVAC or cleaning service for your building? Try your CRE broker.
The networking connections that you’ll have access to with a CRE broker are tantamount to your own personal walking yellow pages.
Negotiating a real estate deal is not as easy as it seems in the movies. You can’t just sit down, slam your fist on the table, throw some money in the air, and get what you want. Negotiating takes real skill, experience, and time. Especially if you work in industries like manufacturing where you don’t have to worry so much about interpersonal skills, negotiating may not come naturally to your skillset.
Negotiation requires intense communication, conflict diffusion, and rapport building. The right person for negotiating real estate brokerage situations will have ideally done this before. A CRE broker will know where they can push for better or have to give a little on your expectations. They’ll be able to build rapport with the other side and avoid conflicts that could risk a great deal.
If you’ve never negotiated a deal before, it’s not a good idea to try it by yourself. You can easily find yourself with a worse deal and be taken advantage of by more experienced parties.
Get the Benefits of Working with a CRE Broker.
With Rockpoint Commercial, you’ll get all the benefits of working with a CRE broker that you need. At Rockpoint, we have years of experience in Frederick, MD to be able to interpret and help you understand the market in order to use it to your advantage. We’ll guide you through the process to find the perfect property for your business and help you to seal the deal with a high quality negotiations experience.
Rockpoint Commercial does it all. From buying or selling a property, to finding tenants or finding the right property, we take the challenge out of commercial real estate. If you need help with CRE brokerage, contact us today.