One doesn’t buy commercial real estate because it’s fun (which we can’t fault you if you did), like any investment, you purchase because of the assumption that you will get a return on that asset. Getting maximum value out of a commercial real estate transaction involves many variables. These include local market conditions, financial market fluctuations, absorption rates, vacancy rates, local government factors, etc., but there is one constant in every scenario where maximum value is attained.

Think you know what it is? Keep reading to find out.

[bctt tweet=”Is your broker doing this? If not you’re missing out on 9.6% more per SF on your #CRE sale. ” username=”SVNPercival”]

Ensure High Commercial Real Estate Returns

In the recently published Cooperation Study Report, SVN International Corp. Research Division poured over 15,000 transactional sale records from Real Capital Analytics (RCA) to define whether or not broker cooperation brings higher prices. The results were undeniable.

In the report SVN established that indeed cooperation in commercial real estate drives results, boosting CRE returns 9.6% per square foot on average compared to transactions where brokers did not cooperate.

Written by SVN EVP of Organizational Development Solomon Poretsky, the report outlines key data points that support the pricing advantage of cooperating in commercial real estate transactions.

Key Cooperation Study Report Takeaways

  • commercial real estate studiesThe 15K sales included in the survey cover the sale of properties valued between $2.5 and $20 million, in ten major U.S. markets, over a period of 10 years.
  • The value attained from broker cooperation varied by commercial real estate sector; showing industrial assets as seeing the smallest boost and multifamily properties seeing the highest sale price increase from cooperative deals.
  • Commercial real estate selling price is increased when a broker cooperates with all other firms, competing or not. This drives more visibility, which drives more competition, from more buyer pools.

Your Commercial Real Estate Broker Could Be Losing You Money

So, let’s back up and look at this as plainly as possible. We just told you that if you want to make 9.6% more on the sale of your asset, all your broker has to do is cooperate with another broker on the deal.

Seems so simple doesn’t it? We think so too, bad news though – this isn’t really how most of the brokerage community wants to act. Brokers do have a reputation of being self-serving for a reason. To avoid this you have to make sure to seek out a CRE broker that is actively involved in his real estate community, has good relationships with other brokerage firms and has a track record of making it, well, not all about them.

If you want tips on what to look for in a broker check out our recent post, Hiring a Commercial Real Estate Broker? Avoid These Stereotypes.

50% of the Commission | 100% of the Time

By subscribing to this idea of value driven through cooperation, a brokerage model where everyone in the equation wins (broker and client), you will – in most literal terms – increase your commercial real estate return…by 9.6% per square foot on average.

If this interests you, give one of our Charlotte commercial real estate team members a call today at 704.632.1000.

SVN Percival PartnersPercival 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.