Your thoughts on commercial property owners representing themselves when leasing building.

In Leasing Property - Asked by Sally V. - Oct 17, 2009
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Answer(s)

Dave V.
Owner/Investor
Clovis, CA

Please do your credit check /financial s and background check. You can copy the lease agreement from previous leases.

Oct 18, 2009
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Jim T.
Owner/Investor
Abilene, TX

Our family has owned commercial office buildings in Texas since the late 80s. After finally getting tired of dealing with representatives and managers, we have determined that we are the best people to represent ourselves in this market. Your conditions and outcome may differ.

Oct 19, 2009
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Saletin Real E.
Owner/Investor
Cranston, RI

Simply put it depends on the owners ability and experience as to whether or not they should manage their property themselves. There are many aspects to commercial leasing and one bad lease could leave the owner feeling more like a prisoner. You must have your own very reliable network of professionals such as lawyers, brokers, and maintenance workers. Even the best lawyer can't prevent you from agreeing to a potentially crippling lease (although he should advise you not to, but lawyers are not property managers). Worse than a vacant property is a property that is occupied with bad tenants with less than desirable terms. By hiring a professional you can avoid many of the common mistakes made by owners and maximize your return on investment. The key word is to hire a "professional" property management company if you yourself are not a professional property manager. Just like any hired professional asset manager, the fee they charge you should be less than the value they add to their client. For this reason the price the management company wants to charge you should be considered and compensation should be related to the properties performance.

Oct 19, 2009
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Charles (Chuck) M.
Broker/Agent
Orlando, FL

From a Leasing Agent's perspective one big thing to consider that the "right answer" here depends on the type/class/size of the property in question. If you are leasing to small shop business owners etc, you can probably handle it yourself and the value an agent brings to the table is more stress saving than money making. However, if your property is the type that can serve a regional or national business/retailer, the value an "professional" agent can bring to the table can be very large, mainly from their experience and ability to reach out to prospective clients. On the retail side, I know of many national retailers whose representative will only work with a landlord that has a leasing agent due to the complexity and scope of some lease and buildout projects. In short, I agree with what others said, you need to make sure they agent is going to add tangible value.

Oct 19, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

You will have several of the same issues run into by owners selling their own properties. Missing legal protection, professional advice, and negotiating buffer. Plus it takes time and energy. Maybe it's worth it to you...
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com
http://www.gregorygarver.com

Oct 23, 2009
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Sally V.
Owner/Investor
Woodstock, VA

Thank you all for your thoughtful answers. It took me a while to check back to see your reponses, but they are much appreciated!

Nov 18, 2009
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