Whether you are looking for office space in West Palm Beach or industrial properties in Miami, you may be tempted to cut out the middleman, so to speak, and handle the process on your own. When it comes to your business and portfolio, though, is it better to DIY or hire a commercial real estate broker?
Let’s look at a few pros and cons:
Con: Brokers Commissions
Cost is one of the reasons businesses tend to forgo working with a commercial real estate broker. Fees on larger, pricier properties can be onerous. In some situations, the company must cover the broker’s commission, as well as costs associated with the purchase/leasing of the property.
Pro: Brokers Commissions!
Working with a broker is a pro in most cases: often, the building’s landlord pays the commission of the listing agent, and this is split with the tenant broker. This means you pay nothing out of pocket. Before you sign on with a broker, be sure you understand how fee structures work and avoid clauses that extend commissions over time or increase them if you renew your lease.
Pro: More Savings
Leaning on the knowledge of an experienced broker can help you streamline the process, maximize market opportunities, and negotiate more favorable terms to save you money - and time.
Listing agents protect the landlord’s interests. Ideally, your tenant broker is looking out for yours. But they do earn commissions based on purchase price, so they may try to steer you towards higher-priced properties that are outside your ideal range. They may also try to hurry you through a deal because they only get paid when the transaction is complete.
Pro: An Advocate
With the right broker, however, you have an ally who listens to your needs and works towards a deal that is best for you.
Working with a trusted commercial real estate broker can make this complex process much more manageable. Take the time to find the right fit, and you’ll experience far more pros than cons - no matter if you're in search of office space in West Palm Beach or industrial properties in Port St. Lucie.