7 Questions to Ask a Commercial Real Estate Broker (Before You Work with Them)

A commercial real estate broker helps you buy, sell, or lease property. They can be useful partners whether you’re a business owner looking for the right brick-and-mortar location, or a commercial real estate developer searching for the next piece of property for a new commercial structure. Whatever your needs are, you want to be sure you find the right fit before you commit to a broker.

The best broker for you depends on a variety of factors such as location, expertise, and brokerage fees. Before you decide which broker to work with, consider asking the following questions. The answers you get from a potential commercial broker may clarify for you which candidate is truly best for your needs.

1. Where are your geographical areas of expertise?

When you work with a location expert in your desired area, you’re far more likely to see all the opportunities available to you, as well as certain parts of the region that are best left alone. Local experts have knowledge of rezoning efforts, competitors who have their eye on the same property, and traffic patterns around your prospective location.

In addition, area experts will likely be fixtures in the parts of town in which you’re looking to buy, sell, or lease. This means they’ve developed professional connections with other brokers as well as property owners in the area. With these relationships, they may have insider knowledge about trends and changes they can share with you to help you make the best decision possible.

2. What are your views on trends or pitfalls in the current commercial real estate market?

Speaking of trends, the right commercial broker for you will be knowledgeable about current events and news in commercial real estate. They’ll know whether or not the market is likely to move up or down, and what potential pitfalls may cause future disruption in the market. This information is essential for any business owner looking to make a solid, sustainable real estate investment or leasing choice.

3. What is your experience in commercial real estate?

While length of time in any field isn’t 100% indicative of skill, it’s still important to know if the person you’re working with is experienced in commercial real estate brokerage. Ask questions about their history, and the type of clients they typically serve.  

Get real numbers when you can. If a broker is hesitant to discuss their work experience, that could be a red flag. You want honest transparency from your real estate broker.  

4. What references can you provide?

References are standard in business. Much like experience, commercial real estate brokers should have no issue offering references.

5. What are your specialties in commercial real estate properties?

There are sub-specialties within the commercial real estate industry. Ask about the specific types of buildings and properties with which your prospective broker has experience. This will help you determine if you’re the right type of business or client for them. They may be an excellent broker, but if their specialty is not in the type of property you’re looking for, you may find another broker is a better fit.

6. What do you charge for your brokerage services?

Fee structure changes, depending on whether you’re a tenant or an owner. Some tenants may not be responsible for paying for broker services at all, except in certain cases. Again, transparency is your friend here. Ask for a specific breakdown of the fees for the services you require, to be sure they align with your expectations and budget before you proceed.

 7. What do you need from me before we start?

Before you begin your work together, you need to be aware of what your broker will expect of you. How will you communicate? Are there any documents you need to prepare? A clear understanding of all expectations will both encourage a healthy working relationship as well as potentially speed the process of buying, selling, or leasing property.

Find the right fit with Maddox Companies

Whether you’re looking to buy, sell, or lease, our team of commercial brokerage professionals are here to help you secure the best deal possible. Contact us today to learn more about how we can help you with your current or prospective commercial real estate property.