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Do You Really Need A Commercial Real Estate Broker?

December 8th, 2014

Imagine that you’re a small company needing to relocate to a bigger, better space. You already know that you’re going to continue to lease; you know (generally) where you need to locate, you know how much space is needed, and roughly how much you should spend. You think you’re set, right?

With that information in hand, you can easily figure that the following scenario would be true: “it would be in our interest, and in the interest of our future landlord, if we acted as our own leasing agent.” After all, you could take the money you saved by not having an agent and split it with the landlord. You can already hear yourself saying, “that would make us a more attractive tenant, right?”


In a sense, forgoing a realtor could potentially make you a more attractive tenant to some owners. However, that benefit is a double-edged sword. More often than not, when building owners realize that you’re without representation, you’re at the mercy of building owners taking advantage of you and your business. Without an agent to act on your behalf, you are also seen as a company that didn’t need to be taken seriously.

But, let’s say that despite the warnings, you begin a search anyway. You scour online listings and drive all over acceptable neighborhoods and spend hours researching the market. You even call numerous listing agents directly (even though it’s Real Estate 101 that you should never do this) and view properties. Your belief that landlords would share your enthusiasm for saving money would win in the end. You looked at numerous buildings, and find that owners and agents alike are readily willing to share drawings and data with you. You know you’re saving everyone money.

It comes time: you’re ready to make offers. You know that any of the options would be acceptable, and that your knowledge of the spaces could use each as leverage against the other.

At least, that was your plan.

The first proposal was ignored. The other proposals were all replaced by the building owners’ own proposals, which bore no resemblance to what you’d envisioned. You negotiate a lease for your first-choice space, but after weeks of going around in circles it’s clear that you weren't getting anywhere.

Enter the Commercial Agent.

Sure, you’ve done a great job identifying your space and location needs, but you missed out on the value that a Real Estate Professional provides: negotiating the terms of the lease and concessions.  Often times you don’t get everything that you want, but you do maximize your business value by allowing the expert to handle what they do best:

  • Providing maximum access and exposure for tenants and owners.

  • Handling all negotiations and procedural work.

  • Preparing, reviewing, and executing contracts.

  • Representing you with full disclosure and honesty.

  • Providing the client with the most maximal deal value.


Of course, the greatest benefit of all may be the wisdom not to try this on your own the next time. Think about it, there are plenty of people that are capable of selling, buying, or leasing space on their own, but a quick look into the world of ‘FSBO’ transactional issues will show you that it’s always best to have a professional on your side.