How to choose a commercial real estate agent
It pays to interview your prospective commercial real estate agent.
The biggest key in my opinion is to get the right agent for the job.
If you’re looking to lease 2000 square feet of warehouse space, it doesn’t pay to hire a top producer at a national company…if somehow you manage to get them engaged at all, the work will be carried out by a runner (ie a rookie) with little to no experience.
Believe it or not there are brokers for whom these little lease assignments are their bread and butter. Some complete 50 to 100 of these transactions a year. For the small requirement, work with one of these agents.
NEVER hire a residential agent to represent you in a commercial transaction. Ever. As the agent how many houses they’ve sold in the past 24 months. If the answer is greater than zero, move on.
Each product type — office real estate, industrial real estate, retail real estate, etc. — requires its own skill set. Find the agent with the appropriate skill set for the job. In a smaller market you may need to deal with more of a generalist, but in a major metropolitan area you will find agents specializing in one product type. Industrial and office are my focus, and I’ve turned down many multi-family disposition assignments over the years that could have potentially been very lucrative.
Be prepared to be questioned back, qualified by the agent, and don’t take that personally. They may save you significant time by helping you hone your search, and if you’re talking to a talented commercial agent you’re going to learn a lot for free.
