If you’re looking for a commercial facility, it’s a good idea to engage one or even two property brokers who have the expertise to meet your requirements within a focused sector, whether you’re needing office space or looking for a warehouse facility. Here are five tips to get the most out of commercial property brokers.
1. Work on fixed timelines. Give your broker a brief window (a week or so) to service your requirement. If you’re not satisfied with their performance after this period, open the enquiry up to a new broker
2. Landlords don’t like enquiries that are ‘hawked’ around the market. When a buyer or tenant engages multiple brokers, landlords are less open to the deal, since they’re being contacted by multiple brokers for the same enquiry. In addition, landlords are less likely to negotiate if they’re under the impression that there are multiple enquiries in the marketplace for their assets.
3. Avoid signing onerous mandates. It’s far better to work to brief, fixed, exclusive periods with brokers, as this ensures that you’ll get good service without being bound to brokers who aren’t performing.
4. Discuss broker fees up front.In most cases, commissions are paid by the landlord or seller.
5. Make sure that the rent quoted is a “gross rental” number. Gross rental includes items such as net rental, operating costs, parking, generator contributions, park levies, rates and taxes.
Negotiating a good commercial property deal means granting exclusivity to the best brokers you can find. If you stick to the points outlined above, you’ll have the best chance at securing the right property at a competitive price relative to the market.