The unique aspect of commercial real estate investment is that it is a highly local business – meaning that the market in which the property is located determines the success of an investment. When looking for the best deals, hiring a commercial real estate broker is advisable. They know all about the conditions in your local market.
We will discuss the various services a Burlington commercial broker provides to investors and tenants of commercial real estate. Nicro Realty experts will also examine why commercial real estate brokerage firms are an important resource to invest in or rent a property.
What is a Commercial Real Estate Brokerage Firm?
A commercial real estate broker is a licensed professional hired by clients to represent them in property sales or leasing transactions. For smaller transactions, there may be one broker involved. For larger ones, however, it’s common for a team of brokers to advocate exclusively on behalf of their client’s best interests throughout the process.
In order to become a Burlington commercial broker, one must meet state-specific requirements that typically include earning an education degree and passing a certification exam. After passing the exam, a person may work for a real estate brokerage firm or start their own business.
Nicro Realty is a full-service commercial real estate brokerage firm providing top-quality appraisal, brokerage and asset management services to the Burlington, Hamilton, Oakville market and beyond. If you are looking for hiring a commercial real estate broker, contact us today.
What is the Role of a Burlington commercial broker?
A broker’s role is to advocate for their client in three types of transactions: buying or selling a home, dealing with insurance companies, and preparing taxes. Hiring a commercial real estate broker can be a great decision. Here are some of their responsibilities.
Real estate investors may work with a broker to find properties to buy. At the beginning of this process, they discuss their preferences and budget with the broker. The Burlington commercial broker will then take this information to identify properties for the investor.
An investor seeking such properties could receive a mix of on- and off-market listings to consider. It might take a few weeks or months for the investor to find just the right property. Once the investor has identified a property, the broker negotiates its purchase and manages the process of due diligence. When the deal is closed – that is, when all contingencies are resolved – it’s time for celebration!
When an owner decides to sell a property, they usually go for hiring a commercial real estate broker to represent them in the sale.
Commercial Real Estate Brokerage Firms often take proposals from multiple sources and choose the one that best meets their needs. Once a listing agreement has been signed, the broker prepares an Offering Memo and markets the property to their network of investors.
A real estate agent works to negotiate the sales contract. He also collaborates with colleagues from other agencies. He/she ensures all parties are clear on logistics at closing.
Looking for hiring a commercial real estate broker, contact Nicro Realty today.
Burlington commercial brokers may be involved in the purchase and sale of real estate, or they may represent landlords or tenants in a leasing transaction. Landlords may hire real estate agents to find tenants for vacant spaces and negotiate leases.
A tenant may hire a broker to find them a new space that fits the requirements of their business. If the broker represents the landlord, they will negotiate with their client’s interest in mind: getting a high rental rate and/or a long lease. If they represent the tenant, it is to get a low rent and/or short term possible. When they negotiate on behalf of a tenant, property managers typically try to get the lowest possible rate with maximum flexibility.
Burlington commercial brokers are responsible for performing a range of financial analysis in different business scenarios. A broker’s most important responsibility during a sale or purchase transaction is to prepare the Offering Memo. This Memo highlights all of the important aspects of the property and its location.
In completing the proforma, the broker must perform a significant amount of financial analysis. This includes reviewing market conditions, rent rolls, past operating statements, etc.
Demographic and Market Analysis
The Offering Memorandum also highlights the key aspects of the market in which the property is located. To complete this section, the broker must gather information about a region’s residents and their living conditions. This includes gathering data on such factors as population growth rate, major industries, distance from major roadways, significant employers, and crime statistics.
The information gathered here is also an essential part of the investment decision-making process. Your commercial real estate brokerage firm uses it to make decisions when buying or selling stocks or other securities.
Commercial Brokers vs. Residential Brokers
Burlington commercial brokers focus on the purchase, sale, and lease of commercial properties. There is also a separate group—residential realtors/brokers—who focus on residential property sales and leases.
While a major distinction between these two types of brokers is their area of expertise, there are other differences as well. A commercial broker license is more difficult and time-consuming to obtain than a residential real estate broker’s license.
Finding and hiring a commercial real estate broker can be time-consuming and complex. However, it can have a significant impact on the success of an investment.
Looking for a professional and licensed commercial real estate agent or Commercial Real Estate Brokerage Firm? At Nicro Realty, we seek to generate superior long-term returns while creating strong economies in the communities we invest in.