It’s important to understand what a commercial real estate broker is and their role in the process of making deals and agreements. Navigating the world of commercial real estate is more effective when you understand the important roles involved and the rules of the industry.
Let’s shed some light on what a commercial real estate broker is and what you can expect from them.
What is a Commercial Real Estate Broker?
A commercial real estate broker acts on behalf of their clients in the purchase, lease, or sale of a non-residential space. While they often start out with obtaining a residential real estate license, they often expand their abilities through specialized training for commercial real estate licensing.
Commercial real estate brokers have advanced levels of training and expertise to better maneuver the complex issues related to zoning, taxes, market data, financial analysis, property management, and more. Brokers are also advanced in their understanding of insurance, taxes, legal, and ethical issues.
Some of the responsibilities of brokers include:
- Reviewing and negotiating contracts
- Supervise all areas of the commercial real estate process
- Manage negotiations between buyers and sellers
- Guide agreements, contracts, and other documents
- Draft legal documents
- Help promote and market available properties
- Manage a portfolio of properties including a history of available, taken, and upcoming properties on the market
Their skilled guidance is highly valuable to a wide range of individuals and businesses interested in making a commercial real estate investment. They are knowledgeable on state and local laws as well as current trends that impact investing in commercial property.
The types of commercial properties brokers can aid with vary widely and may include:
- Medical offices
- Mixed-use properties
- Apartment complexes
- Hospitals or Long-term care facilities
- Low, mid, and high-rise buildings
- Manufacturing plants
- Shopping malls/centers
What Do Brokers Look for When Helping their Clients?
Commercial real estate brokers assist in locating and matching available properties with potential buyers or leasees. They are expected to serve as a liaison between many different parties involved as well as offer extensive knowledge on demographics, locations, and whether or not making the investment is in the best interest of their client.
Other factors that play into what brokers look for to meet their client’s needs include:
- Parking space, availability or restrictions
- Accessibility to public transportation
- Highly visible location for commuters on roadways or foot traffic
- Storage capacity to hold inventory
- Growth potential for offices and businesses
Brokers assist clients with long-term planning that impacts the current leasing or sales decisions.
How to Become a Commercial Real Estate Broker
What’s most important is attaining an in-depth understanding and passing of various government-mandated exams to acquire licensure.
Property laws, building codes, and other regulations are important on an ongoing basis. Brokers are expected to keep up with any changes in legal policy at all levels that may impact the commercial real estate industry.
Hopefully, this helps shed light on what a commercial real estate broker is and the duties of their role. Wherever you are in the journey of commercial real estate, you’ll appreciate the tremendous value commercial real estate brokers offer.
Plaza Companies is the Premier Choice of Commercial Real Estate
Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona. Our firm specializes in staying connected and conscientious of all emerging trends and laws.
Contact us today to learn more about leasing the right space or anything else we offer!