The good news is that you’re seeking commercial real estate (CRE) and have decided to use a professional commercial real estate broker. Bravo! The bad news is that you may have to sift through some proverbial frogs before you find your perfect broker match. There are a lot of us in the Charlotte commercial real estate market and, while competition is great for the client, it’s important to remember that not every broker is created equal.
So, how do you decide who is the best CRE broker for your exact needs? Whether seeking commercial real estate in Charlotte, or your local market, below we outline the stereotypical real estate professionals you should avoid. If you dodge these bullets it will make for a much more successful, and enjoyable, leasing or buying experience.
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I Work Alone
All successful commercial real estate transactions are realized from the efforts of many, not one. So if you ever hear a broker say “I work alone”, please save yourself some time and promptly turn around and walk in the opposite direction.
Teamwork makes the dream work, and in commercial real estate collaboration is the key factor to high returns. Don’t believe us? Then believe proven data. This recent report, compiled from over 10,000 real estate transactions over 10 years, proves that when brokers cooperate assets sell for an average of 9.6% more per square foot.
Bottom line, brokers who want to work all alone are doing so for only one reason: to keep both sides of the commission. While this certainly is good for the broker’s bank account, it’s very, very bad for the client’s. 9.6% bad to be exact.
My Specialty is Everything
Are there situations when hiring a jack of all trades is a positive? Sure! Though, commercial real estate is typically not one of them. Each CRE sector (industrial, office, multifamily, retail, land, NNN, self-storage) comes with its own set of specificities…and complications. From usage restrictions to operating expenses to lease terms, having intimate knowledge of and experience in a specific property type can help clients avoid lost time and money.
When a CRE broker tells you that he or she is a specialist in every real estate sector, a giant “Turn back now!” sign should flash in your head. We’re not saying an office broker can’t be experienced in retail, or that a land broker doesn’t know a thing about multifamily, since general transaction know-how is the base of all successful CRE professionals. What we are saying is to seek a commercial real estate broker that has history and experience (you can verify) in the specific asset class you are seeking.
Selling Your Asset the Fastest Is Most Important
Listen, we are not going to advise that a commercial asset should be sold slow and steady. Commercial real estate is a dynamic market and the longer an asset sits as “available” the harder it is to lease or sell. That being said, if a commercial real estate broker tells you they sell assets faster than anyone else the following question should start forming in your mind: How and at what cost?
The old adage “too good to be true” could absolutely be applied in this instance. Not in every circumstance, but if a CRE deal comes about super fast you should be cautious. Being in the Charlotte commercial real estate market for over 50 years we have seen it all, clients chasing down deals that never truly existed in the first place to clients taking the first offer they receive, leaving a lot of money on the deal table because of it.
Instead of seeking a commercial real estate broker who promises to sell your asset in record speed, look for one who wants to sell your asset to the right buyer, for the right price at the right time.
Looking for a Commercial Real Estate Broker in Charlotte?
If you have been running into the brokers we listed above, let us first offer our condolences and then say “there are other options”…and we mean us. With over 50 years history in Charlotte commercial real estate we have completed countless successful transactions for our clients. If you would like to experience a different kind of brokerage that puts YOUR interests first, contact us today.
Percival Partners is one of Charlotte’s most recognized and respected commercial real estate firms with more than 50 years experience in the region. Our professional and experienced real estate Advisors are in the business of listening, understanding, and adding value. No matter the commercial property type you own or seek, you can count on the Percival Partners team to maximize your return and peace of mind. To reach us, you can call us at 704.632.1000 or follow us on Twitter at @SVNPercival, LinkedIn or Facebook.