Choosing a Retail Real Estate Representative

How does one choose their commercial real estate broker? How different is one from another? And what are the most important questions to ask before making a final decision?

We are all good at what we do and we never want anyone questioning are ability. It makes us vulnerable, defensive, even irritated but I am here today to encourage retailers and restaurateurs alike to ask the hard questions, to get to know, intimately, their real estate representative and choose them not just because they like them but because they trust them because too many Tenants do not. Maybe they go with a family friend or they ask around for a referral or they search online or, my favorite (and most disturbing), they pick someone because of the big company name on the card. Of course, these are all great ways to START looking for a representative but they are certainly not ways to make a decision.

First, it’s important to understand how a Real Estate Broker operates. Real Estate Agents and Brokers are independent contractors. Essentially, free agents. They are not bound to any company and are free to move around at their discretion. So, just because they work for a good (or bad) company now doesn’t mean that they have in the past or will in the future (hence my disturbance that many people make their choice on this criteria alone). Secondly, and probably more important, is to understand that agents and brokers get paid on commission. This commission is a percentage of the Tenant’s rent. Although it is not paid directly by the Tenant, is it paid indirectly through the Landlord, who takes it out of the rent payment. The larger the space and the higher the rent, the more the broker makes.

So, that brings us back to making that final choice. Agents and Brokers are as different from one to the next as each person is as different from one to the next. As representatives, our value is the information that we have and the time (and quality) of that time that we will spend representing you. Just as in life, you will find liars and cheaters standing next to honest and loyal people. And as in life, we choose (or try to at least) honest and loyal friends and significant others. And even then, when we do choose these people, we take our time letting them in and opening up. This is how I advise my clients, friends and referrals to choose their broker. Don’t choose me because I’m your friend or your friend’s friend or you think I look like a representative should look. Choose me because more than anything else you trust me and you know that I have your best interest in mind. Many brokers try to push and persuade clients to take a space for the wrong reasons. You MUST know deep down inside that your broker is always acting in your best interest, unconcerned with what the paycheck will look like and most concerned with your business’ success.

I think the best advice that I can give to someone looking to engage a real estate representative is to really get to know them as people, not as  real estate brokers. Ask the personal questions: Are they married? Do they have kids? Where did they grow up? What are their goals? What are their beliefs? Do not be afraid to make it a personal decision. Your business is a personal decision! If you choose the wrong representative and you invest your time and trust with them only to have them persuade you into a space that ultimately causes the demise of your business, it’s going to get real personal then, so don’t wait! Make sure that these answers to these questions align with what you want and be picky. You are letting someone in to your financial information, the core of your business and ultimately the core of who you are. When you open your retail store or restaurant, in that moment you will be realizing your dream. Ask yourself: Who do I want standing next to me when my dream comes true?