What are the criteria when evaluating a commercial real estate broker?

I also want to know where I can get a list of local brokers dealing with commercial real estate in all states.
In Buying Property - Asked by Wei L. - Oct 22, 2011
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Answer(s)

Brandon C.
Broker/Agent
Long Beach, CA

I believe that there are several factors that a person needs to consider when evaluating a commercial real estate broker.
1) Is the broker specialized in the product type? For example, if a Landlord owned a small office building, they should make sure their broker has a background in selling office buildings in that area.
2) Is your broker's license in good standing with the State that they do business? For example, brokers are required to disclose their license number. This number can be referenced on most state websites. The website should disclose if there are any corrective actions taken against the broker you are researching.
3) Interview more than one broker from different offices in your area. For example, when you get an estimate to paint your house, you should get 3 estimates, this principle should be carried when interviewing brokers. You want to hire a broker that is a good representative of you, and is understanding of your goals for the short and long term.
4) If something is too good to be true, it probably is...Its an over used saying in our country, however, there is a lot of truth to it. Be aware of any broker that is over promising results, and doesn't have any data to support their theories.
I believe if you follow the above simple steps, this will help you in finding the right broker for your real estate needs. If you want any more helpful hints, please do not hesitate to email me at bcarrillo@lee-associates.com

Oct 26, 2011
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Daniel H.
Broker/Agent
New York, NY

These are the most important factors in order of importance:
1) Trust that your broker has your interest in mind and that he is truly your advocate
2) He or she should have a strong knowledge of your industry and the particular market you are focused on, or be teamed up with someone who does.
3) Have confidence in his ability to manage a complex process which involves many stages and incorporates many parties, including, landlords, agents, architects, landlord and tenant attorneys and building management.
4) Make sure it is someone who you have you can foresee developing a rapport with – you’ll be spending a lot of time with this person.

Oct 26, 2011
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Tai N.
Broker/Agent
City Of Industry, CA

I completely agree with both Brandon and Daniel. I would like to add that whomever you choose for an assignment that you personally thank all that have participated in the interview process. It will go a long ways in the brokerage community and demonstrate that you are considerate client to work with. Good luck.

Oct 26, 2011
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Tai N.
Broker/Agent
City Of Industry, CA

In regards to your questions regarding a list of local brokers in all states, that is a tough one. A good place to start may be here on Loopnet, they offer a means to search for brokers by locality. Another good place would be to do a web search for commercial real estate associations such as CCIM, SIOR, ICSC, etc. it all depends on the product type you are working with.

Oct 26, 2011
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Richard A.
Broker/Agent
West Palm Beach, FL

If you are leasing and buying you will need someone that can work deals ,someone who can close deals and have the fire in them to find everything you are looking for, I have been Top agent for 500 companies nation wide, so what I see is details in the deal are very important. What I have seen is the larger the company the smaller the service, having a point man that learns your needs and makes your job easyer and frees up your time to do other things, if you need more infor or have other questions just email me at richard@highlightrealtynetwork.com or call 561-252-0948 the answer is just hire one agent to handle it all.

Oct 26, 2011
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Joan P.
Broker/Agent
All New York Locations, NY

Agents who are willing to sacrifice time, energy and money to educate themselves over the years through. Education such as CCIM and MAI, being mentored and devoted with a passion for real estate. Typically I have found the legal community has a good handle on what brokers are qualified.

Nov 3, 2011
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Doyle W.
Broker/Agent
Honolulu, HI

I would begin by using these three measurements:
1.) What does it cost to replace these improvements, including but not limited to: actual costruction costs, financing costs, marketing costs and indirect costs i.e., A&E, legal, etc.;
2.) What are current market rents for similiar type properties coming onto the market, current vacancy for similiar type of property;
3.) What are current market sales comparables for this type of property.
Finally, these measurements are not meant to be all encompassing parameters for this property. However, I believe that this would be a good start to determine whether one should proceed further withis property.

Nov 3, 2011
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Kevin H.
Broker/Agent
Independence, OH

Wei,
Experience not only in buying and selling but in ownership, leasing, property management, dealing with legal issues in the particular state or area (location) that you are considering.
There are risks involved in Real Estate like in any other Business venture!
So those along with all the above come in to play.
If your interested in the State of Ohio, contact me and we can consult some of your choices.
I can give you my prosessional opinion on all the above.
The only thing I haven't done was complete my own development or build a new home (wife not interested) for my family.
Sincerely,
Kevin Holdash
Jennie Chiccola Realty, Inc..

Nov 3, 2011
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Wei L.
Broker/Agent
Burlingame, CA

Thanks for all the answers above. I really appreciate your input. Because I am new to CRE, I figured it's in my best interest to invest in NN/NNN leased single tenant properties. Although I live in bay area, I am open to anywhere as long as it's a decent opportunity.
For the acquisition, I found myself need help on the whole process:
define the investment strategy;
identify the candidates (I do Loopnet search too);
analyze their pros/cons (the industry, the location, etc.), risk/return, exit strategy;
put offer(s) and negotiate price;
due diligence (lease review/abstract, rent comparison, sales comparison, etc);
get a loan, or assist in the loan process.
I am wondering whether I am asking for too much.

Nov 3, 2011
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shelby d.
Owner/Investor
norlina, NC

like location......... experience, experience, experience, next is entrepreneriual insight are they able to help you structure a deal that makes economic sense for everybody

Nov 5, 2011
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Krish P.
Broker/Agent
Brandon, FL

While all the above is generally true, I would include Trust and Honey as the key ingredients.

Nov 9, 2011
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Timothy H.
Broker/Agent
Monarch Beach, CA

We are all as good and as bad as each other. Once you have done your investigation and found a number of qualified individuals the rest is just your personal preference. You are going to be working closely with the broker you sign up with so pick the one you feel comfortable with on a personal level

Nov 9, 2011
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Jason M.
Broker/Agent
New York, NY

Trust. Find someone you know and trust. If you do not know someone ask around. This is a very small community and reputations are quickly known.

Nov 9, 2011
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