How many times this month have you been asked to help or step into a particular role you have some slight knowledge of, but are not well-suited for? If it’s becoming a copier repairman to help clear the paper jam, that’s not a big risk, other than breaking a part you shouldn’t have tried to open. Think bigger …sounds like you’re talking to an admin or support staff …something like “You/Your company is successful, and you’re ready to take on new challenges/move into bigger space …but how do you do both …not focusing on your business leaves you vulnerable to lost opp’s …etc …” see?
Stepping into a role that has you negotiating deals for leased property, or to buy or sell a building complete with reading through all the legalese, has more potential for costing the company a lot of money due to Taking your eyes off your business. (We DON’T read legalese, that’s a license law thing. We negotiate deals or opportunities, Leases, etc …but we can’t function as lawyers.
Wouldn’t it be smarter–even more cost-effective–to hire a commercial property broker to represent your company? The short answer is yes, and here’s why:
When acting as a broker on the landlord’s behalf, your broker will have solid up-to-the-minute knowledge of property market conditions. Those would include other available space, current and future, building conditions, rent levels and where they are predicted to go, and concession packages with a variety of different options.
They can help landlords avoid negotiations that could result in new and/or lower rent levels for his buildings. It’s certainly in the landlord’s best interest to maximize rental rates and market value.
Hiring a broker to represent you and your company as a tenant representative is a big deal. Some might call them miracle workers. Not only will they save you the stress of finding the right property all on your own, they will make sure the space is right for you and negotiate the lease for you as well.
They also have specialized knowledge that can help them avoid language in a lease document that could have big impacts on operations and expenses down the road.
Commercial property brokers are also equipped to help with 1031 Exchanges, also called a Starker Exchange or a Like-Kind Exchange, a powerful tax-deferment strategy. It lets investors defer paying capital gains taxes so long as a similar (or like-kind) property is bought with the profit from sale of the first property.
Brokers not only know how to find the best match for an investor, they also have a solid understanding of the four most common like-kind exchange types, including the simultaneous, delayed, reverse, and construction/ improvement exchanges.
Hiring a Broker
Hiring a broker not only allows you to generate leverage, it will save you time (and, thus, money) and provides you with objective insight so you can weigh costs and benefits, ultimately letting you make the best possible choice for your business.
At Caton Commercial Real Estate, we have several of the industry’s top commercial brokers on staff. Give us a call and let’s talk about how we can help you.