Archive for August, 2011

7/7 How to find office space easily

Yes I am a real estate agent so you are going to say this question is designed to be self-serving but lets explore this idea for a moment. The fact is that unless your budget is at least $15k then commercial real estate agents will be able to help you but probably on with one or two options. The reason quite frankly is that the commission from a rental is less than the minimum fee that most agencies prefer to stick to and therefore chasing a deal for $15k rent or less is just frankly an uneconomic use of our time.

There are signs all over town, I can find space by myself easily?

It’s true that when you start looking at office space then new signs suddenly become very visible (same effect as new cars). Anyway yes you could look for a real estate sign in a location you want and might luck in and find the building owner. The building owner will gladly show what space they have whether it’s the size you want or not. Commercial landlords expect to deal with real estate agents and are always happy to pay a fee to them to secure new rental income. Experience repeatedly proves that landlords needs and requirements are usually 180 degrees away from those of a tenant. Landlords expect the agents to groom their tenants, to take them to their building only if the size and style of space is suitable, to advise them of different deals in order to learn what is reasonable in the market and these things are best achieved by an independent person.

When I contact an agent, what should I tell them?

In short as much about your requirements as possible and please tell them your real budget. The truth is tenants want to pay as little as possible, I get that but if you tell them your budget is only X which the agent determines to be well less than market then the agent is less likely to extend themselves and find the perfect space… if you hear the words “if I find the right thing at that price I will ring you back….” which is code for no you won’t!

Why would I want to pay an agent?

Typically a tenant receives a great deal of advice and effort and expects to pay nothing for it. It’s an unusual quirk of the business but there it is. You will motivate an agent to work hard for you if you make it clear that you will work exclusively with him for a time. The last thing they want to hear is that they are the fifth person you have called today, by simple averages they are not going to achieve a sale and they are better off looking to service someone else. So another approach might be to say to your agent ok I will pay you. Now agents are bound by a code of ethics and legislation to make it clear where they are being compensated so if a tenant pays the agent then there is amount you could easily recover as rent free or incentive from the landlord because they expect to pay anyway. Real estate agents only have their time and expertise to sell. If you agree to pay them then they are effectively guaranteed a fee, a return on their time. Therefore they can afford to take their time, look under every rock and present all the options and allow you the tenant to choose from a level playing field.

One last word…

That’s easy! Choose someone who knows the area, has experience and knows their way round a contract. And good luck!

August 31 2011 | Uncategorized | No Comments »