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Working With a Commercial Real Estate Broker

Working With a Commercial Real Estate BrokerDo you want to rent a commercial property for your business? If so, you need to make an important decision. It’s time to hire a commercial real estate broker to help you locate an ideal spot for your company. Here’s a deep dive into how to work alongside your broker successfully.

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What Does a Commercial Real Estate Broker Do?

There are a few similarities between commercial and residential real estate brokers. If you’ve ever purchased a house with a broker, you know they guide buyers through the process from start to finish. These professionals are licensed by the state to perform various tasks, including finding properties and negotiating sales.

That’s the same for every broker, no matter what they sell. However, you should know that commercial brokers tend to work with multiple parties since more people are involved in these sales. It’s also standard for commercial brokers to know their clients’ financial situation so they can prioritize their bottom line.

Essentially, you hire a commercial broker to find a property that aligns with your company’s needs, wants, and goals.

Reasons to Hire a Commercial Real Estate Broker

Reasons to Hire a Commercial Real Estate BrokerIt’s smart to hire a broker for many reasons. If you’ve never rented a space for your business before, you might not know how to navigate the process alone. That’s a thought many people have before they rent a property. Let’s take a look at how a broker will help.

1. Negotiate Terms
Are you a natural negotiator? If not, you’re certainly not alone. Many savvy business owners don’t feel like they can negotiate successfully. These professionals will consider your finances as they review rent prices and other fees. Additionally, they might negotiate points like parking, utilities, and more. That’s all to arrive at a better agreement between you and the landlord.

2. Evaluate Leases
You need to fully understand lease agreements before you sign one. This space will be under your business’s name. If you need someone to help you evaluate leases, your broker can assist. That’s a bonus when you might look at two or three agreements in one week.

3. Market Knowledge
If you’ve rented commercial space before, you know you have to look far and wide to find properties that are both quality and affordable. Brokers can access listings that might not be available publicly. It’s essential to consider more than one rental so you can get the best deal. As a result, you can benefit from their market knowledge. These are only a few reasons why brokers can be helpful when you want to find commercial rental properties.

What to Remember When You Hire a Commercial Real Estate Broker

These professionals have various advantages that make them worth every penny. However, you might be curious about how to “use” your broker effectively. After all, you don’t want to pay someone who doesn’t meet your expectations.

Take a look at what you can do to work with your broker correctly.

1. Make a Checklist
Do your best not to expect your broker to read your mind. This individual won’t know your needs, wants, and goals unless you communicate with them. If your company requires a commercial garage door, for example, you need to jot down that point, as well as any special features that you need from it. These details will allow your broker to find the best location for you as quickly as possible.

Set a meeting with your team to determine what your rental space needs to look like. Consider everything from bathrooms to storage to location. Be sure to outline your budget, and don’t forget outdoor space, too.

Do you need a highly visible spot for advertising? Take every point into consideration.

2. Conduct Enough Research
It’s smart to choose a broker who specializes in your industry. If you own a coffee shop, you don’t want to work with someone who’s only rented office buildings. That’s where research comes in handy. Do your best to find an individual broker or entire brokerage for your specific situation.

How do you know whether a broker will be a good fit? Ask them to discuss their recent transactions. If you see they’ve had success with companies similar to yours, you’ve probably found someone who can help. It’s always important to ask for referrals, too. Call any references to discuss their strengths and weaknesses. Keep in mind you might have to interview several brokers before you find a connection with one. It’s essential to plan ahead so you have enough time. Otherwise, you’ll likely feel rushed and overwhelmed.

3. Don’t Sit Back
There are times when your broker will need to “take the wheel,” such as when you want to negotiate lease terms. This point doesn’t mean you should check out entirely. It’s still important for you and your partners to be involved. If you don’t know what happens throughout the process, you’ll inevitably run into obstacles later. Nominate someone from your company to visit rental properties and attend related meetings when you don’t have time.

4. Always Ask Questions
Don’t be afraid to ask questions and offer comments. It’s your business’s space, so you need to have the final say. If you’re curious about something during the search, you should be vocal. It’s key to trust your broker, but you don’t want to let things slide that might affect your prospects.

5. Look at All Options
However, you also need to consider every broker you come across. Don’t limit yourself to whichever broker you find first. If your friend recommends a specific professional, you should certainly speak with them — but you don’t want to pick them just because you got a recommendation.

Be sure to look at multiple brokers in your area. There’s a chance you’ll find someone along the way who meshes with your company better than anyone you interviewed beforehand. It’s always smart to cast a wide net. These tips will help you build a strong relationship with your broker so you can find an ideal commercial rental space.

Use These Tricks to Build a Relationship With Your Commercial Real Estate Broker

It’s not always an easy process to find a commercial property for your business. Fortunately, you can hire a real estate broker to help. Be sure to use these tips to form a successful relationship with whoever you choose. This way, you can find the best possible space.

Rose Morrison is a residential and commercial real estate writer and the managing editor of Renovated. To see more of her work visit: https://renovated.com/

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Utilizing Big Data in Commercial Real Estate

Big Data May Change Commercial Real Estate

Big Data May Change Commercial Real Estate

Let’s look at how you can utilize big data in commercial real estate. Over the past few years, new computer technology has made data analysis — assessing and using datasets that are too large for conventional analytics — increasingly practical for businesses in and outside the tech industry.

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Big data can provide new, profound insights that you couldn’t uncover with less comprehensive information. New analytics techniques are also making nontraditional, unstructured datasets more accessible. As a result, new tools and approaches have made it possible for landlords and real estate companies to take advantage of the tech.

Some commercial landlords are already using data analytics for marketing, building management and investing. Over the next few years, the tech could radically transform the way commercial landlords buy real estate, market to potential tenants and oversee their properties.

Using Data Analytics for Intelligent Building Management

In some buildings, property owners are already using big data and new analytics technology to make building management more efficient and eco-friendly. For example, a building owner might install new Internet of Things sensors that collect minute-to-minute data on humidity, temperature, lighting and air quality. In aggregate, this information could give building owners and their tenants a nearly real-time picture of where renters might be underserved — like inadequately ventilated or poorly lit rooms. The data may also show where building resources may be going to waste Property managers may use this information to make building lighting, cooling and heating more efficient — shutting off lights and cutting temperature control in unoccupied rooms. In some buildings, this information will help smart HVAC and lighting systems manage these changes automatically, allowing building owners to reduce costs and improve the building’s energy efficiency.

The right tool might also help building owners identify areas for potential improvement. For example, they may find rooms that are harder to heat or cool due to poor insulation, hallways that may have inefficient lighting setups or areas where natural lighting may allow tenants to cut down on their use of electric lights.

Preventing Building Systems Failure With Big Data

IoT sensors and big data analysis can also help detect energy fraud and failures in metering systems — both of which can lead to inaccurate billing measurements.

Big data is “smart” enough to identify failures in other building systems — potentially reducing maintenance costs or preventing costly repairs. Data from air quality and humidity sensors, for example, can give building owners an idea of when HVAC systems are beginning to fail, or when simple fixes are necessary — like a new filter. These sensors might enable a kind of predictive maintenance strategy, which could cut down on the need for frequent maintenance checks and help reduce the risk of sudden and unexpected building system failure. This use of data can even help some buildings qualify for green building certifications like LEED certification. Recently, these certifications have become a significant draw for tenants looking for ecofriendly buildings. In some areas, they’ve also improved buildings’ property value by a substantial margin.

The adoption of analytics in commercial real estate is ongoing, but not mainstream yet. Even in buildings where systems are already collecting data, it mostly goes underused. One survey found that 77% of smart building owners store the data their building management systems collect, but 42% of those owners don’t analyze that information.

However, before too long, the tech is likely to be a standard fixture of modern buildings. Current industry estimates forecast that, by 2035, there may be as many as 45 trillion connected sensors in operation in the built environment. All these sensors will be collecting massive amounts of data, at volumes that will make big data critical for commercial landlords.

Data Driven Marketing of Commercial Real Estate

Big data could also transform how commercial landlords market to and negotiate with potential tenants Collected market data might give landlords a better idea of which potential tenants are looking for commercial space in their area, or how much they should charge for a particular building based on floor space and building amenities. This information could help improve marketing efforts — allowing landlords to create targeted advertising campaigns or adjust rents to better reflect tenant income and local property values.

Data Analytics for Real Estate Investment

Soon, this data might also help landlords develop new investment strategies. Market analysts have found that there may be significant, untapped power in nontraditional data for real estate investors and commercial landlords. big data analysis could evaluate information drawn from new sources of real estate data — anything from residential surveys to online restaurant reviews to the number of permits issued to build swimming pools in the area.

Insights in that data can reveal hyperlocal patterns in the real estate market — giving investors a better sense of how property values may change over time. These patterns might help them create more informed investment strategies, and develop the best possible understanding of the local real estate market. Insights into market trends, coupled with data on comparable properties, may also help improve estimated property valuations. Better estimates might enable real estate buyers to develop better bidding approaches, helping them secure valuable properties without overspending.

How Big Data May Change Commercial Real Estate and Property Management

Over the next decade, the big data market is likely to grow significantly — and the industry will probably produce even more data-based solutions for commercial landlords. Right now, landlords can already use this data and IoT tech for building management. With the right information, building owners can adjust and optimize systems to cut down on wasteful energy use, reducing costs and making buildings more eco-friendly. It might even be possible to automate entire buildings.

At the same time, data analytics can also help property companies improve their marketing and investing efforts. More comprehensive data sets drawn from traditional and nontraditional sources can give businesses a better picture of their local real estate marketing — allowing for more effective targeted advertising and informed investment strategies.

Rose Morrison is a residential and commercial real estate writer and the managing editor of Renovated. To see more of her work visit: https://renovated.com/

Rose Morrison

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