No one is an immediate expert upon choosing to enter a new field. This is especially true for commercial real estate, where the goals of those investing can vastly differ. For instance, you may be a current business owner looking to purchase in the Denver, CO area in a building you operate out of while leasing the space you don’t need. Alternatively, you could be an investor looking to diversify your portfolio to help mitigate overall risk.
Whatever your reason for starting your commercial real estate adventure, the first consequential choice you’ll make is who serves as your broker. This partnership is a foundational one, and you should pick a commercial brokerage firm in Denver that represents your values and understand your goals. Once you’ve found the firm that’s right for you, you’ll find easier paths to success in the commercial real estate world.
What is the Difference Between Commercial Realtors, Commercial Real Estate Agents, & Commercial Brokers?
You’ve likely heard each of these terms before. While there is some definite overlap in these terms’ duties and responsibilities, there also exist key differences.
A real estate agent is a licensed individual who helps bring together buyers and sellers to negotiate the sale of a commercial property. An agent, also referred to as a real estate associate, should know the ins and outs of any sale or purchase and properly communicate the requirements to close the deal. Real estate agents work for a specific brokerage firm.
A real estate broker has additional education and licenses that allow them to work independently. A broker can hire real estate agents for their team. They can also form brokerage firms, including a collection of agents and brokers. Brokers are tasked with finding properties that match a client’s needs and help conduct negotiations.
Finally, while most people use real estate agents and realtors interchangeably, there is a real difference. Realtors are any real estate professional, such as a broker, salesperson, appraiser, or property manager, who is a member of the National Association of Realtors. Members of this professional association must follow and uphold the organization’s standards and code of ethics.
What are the Advantages of Using a Commercial Real Estate Broker?
You may consider striking out on your own as you first become interested in commercial real estate in and around Denver. However, this is often a foolish approach as it can leave you working at an informational disadvantage. So, it’s typically in any newcomer’s best interest to use a commercial broker.
One of the most significant advantages of using a broker is access to their network. Like Unique Properties, Inc, successful brokers know their communities inside and out. They’ve built years developing relationships and striking deals. This means that a commercial broker is often the first party aware of a specific building or property entering the market. This gives their clients a natural advantage of making the first offer, potentially taking the building off the market before needless competition leads to a higher purchase price.
Commercial real estate is complicated. It’s governed by byzantine zoning laws and complex regulations that detail what type of property can be built where. These rules often vary not just state by state, but city by city. This means that a property that perfectly suits your needs may not be allowed to do that suiting simply because of where it was built.
Though, a commercial broker will know these rules and regulations inside and out. This again allows you to move quickly to secure the desired property. This helps to remove a barrier to purchase and keeps you from wasting time and money on commercial real estate that does not fit your needs.
A significant portion of commercial real estate is negotiating between parties with different interests and incentives. The purchase, seller, and, later, the tenants all have to come together and agree to a deal for purchase and then for lease. Your commercial real estate broker, especially if you go with Unique Properties, Inc., will likely be an excellent negotiator, mediator, and communicator.
The last significant advantage of a commercial real estate broker is their ability to research and evaluate. They can provide you with a break-even analysis that measures whether you’ll actually come out ahead on your investment. Your broker can also research the area, so you understand the demographics, desirability, and environmental quality. They can also help determine your potential maintenance costs and other future expenses.
The Ideal Qualities of a Real Estate Broker
Your commercial real estate broker should demonstrate each of the skills listed in the above section. However, in terms of what qualities you should keep an eye out for, there are three in particular that typically indicate a commercial real estate broker that’s right for your needs.
The first quality is expertise in commercial real estate. If you’re new to this world, you don’t want to partner with someone whose experience and knowledge match your own, even if they’ve had previous experience working in residential real estate. Commercial properties are vastly different than ones designed for family use. Should you know you’re looking to purchase industrial warehouses, retail locations, or office space, you should choose a commercial broker specializing in that field.
The second quality is an established base in the geographical area you’re looking at. For those in or near Denver, you want a commercial broker that knows the local markets and has demonstrated success in the area. A broker’s first entry into a new geographical location could leave them, and you, at a severe disadvantage.
A final consideration is a broker who works exclusively with tenants. This is especially important if you’re looking to turn a property into an owner-occupied one. Otherwise, it’s okay to choose a broker that works with landlords, too, as that is the relationship you’ll have with that specific property.
Questions to ask a Commercial Real Estate Broker
Once you’ve begun your search for your ideal commercial real estate broker, you’ll need to ask them some basic questions to help understand their past success and how they view their role in your success. Not all of these questions are relevant at all times, but they can help you determine which broker is right for you:
- What specific geographic areas are you most familiar with?
- Do you see the market as going up or down?
- What is your experience as a commercial broker?
- What are some of your biggest successes as a broker?
- Do you specialize in specific areas within the commercial real estate market?
- Have you worked with a client with similar financial goals, and how did that relationship work?
- How much do your services cost?
- Do you foresee any potential conflicts of interest by having me as your client?
How Unique Properties, Inc., Can Help
Unique Properties, Inc. is Denver, CO’s most experienced full-service commercial real estate brokerage firm. With over 40 years of operations, we continually demonstrate our commitment to our clients and our abilities in helping them reach their financial goals. We work to ensure their best interests by delivering concrete solutions for their needs.
Reach out to us today, so we can understand your financial goals and determine how we can best help you achieve them. Call us at 303-321-5888 or email us at firstname.lastname@example.org.