Real Estate Agents
My short list of what I discuss with buyers interested in commercial real estate:
- How they became interested in investing
- Where they want to buy
- Is financial assistance needed with the loan
- The size and budget they're considering
And of course, the most important question of all: What is the best way you'd like me to help you?
How Working With Cap Ex Commercial Benefits You
- You get paid when a transaction closes
- You will be kept informed about progress on a transaction
- You focus on your success
Common Obstacles in Commercial Real Estate Negotiations
Six Challenges to Overcome in Negotiating With an Owner/Landlord
The landlord's agent purpose is to protect the landlord's interest, not represent the tenant so do not let your client believe that the other agent in this transaction will offer the tenant the best deal possible. As such, you need to go in prepared to get the best deal. Encourage your client to begin gathering two years of personal and company financial history as well as a one-page summary that describes the business and the need for the space, and if possible, provide some evidence of your client's ability to pay rent, and prepare all of this ahead of time so that the landlord's agent is comfortable that your client is a tenant that the landlord wants to have in the building.
What are the requirements for the business's signage and how do they work with the landlord's requirements? You must have clear language in the lease agreement about variables like size or color. Be sure to telegraph your client's needs so everyone knows the expectation.
Parking is a big deal! We're a still a car culture in this country. People use their cars to go places. Make sure that there's ample parking and there is no restricted parking that would prevent your tenant's clients from coming to see the tenant. These restrictions are sometimes caused by space limitations or co-occupant demands. There must be enough parking to accommodate everyone. Otherwise, this is going to be a headache for the client later.
Make sure the proposed use by the client conforms with the zoning laws. For instance, you can't have a bar across from a school. You can't put a manufacturing facility in a residential neighborhood. Confirm that the property is located in a zone that allows the type of business your client owns to be conducted there. This is done by reaching out to the local county planning and zoning office and getting a zoning letter.
The space has to be a good match to the client's brand. This includes the overall quality of the building. Does it have ample air conditioning? Are the walls in decent shape for coverings, including paint? How will customers know the client is there (This ties back to the signage)? Ensuring that it can accommodate the client's vision of how their business operates is key.
Your client needs to know exactly what the use options are for the space. If they run an IT company, they need office space. If there's a Starbuck's there and I am a coffee seller, it's a bad match because I can't sell more than 5 percent of my inventory as coffee. Same with sandwiches and the Subway franchise. There are a million possibilities for why a space could be good or bad for your tenant. Make sure that this discovery is part of the early discussion in the negotiations so that's not a later impediment to occupying the space.