To hire a broker, or not to hire… If you’re in the market to lease or purchase commercial real estate for your business, you’ve likely already asked yourself this question — and you want real answers. Most of the articles boasting the benefits of hiring a commercial real estate broker that you’ll find are written by the brokers themselves, so it’s difficult to get an accurate picture of the downsides of working with one. But before you make that big investment or make that sale, it’s important to see every side of the process, including the bad stuff. The future of your business isn’t worth the risk.
1. You’ll save yourself precious time.
When you’re cutting the middleman out, you save yourself time negotiating and hashing out details that can be better spent focusing on your business. And while many brokers claim that their service saves you time, the back-and-forth between you, the broker, and the landlord often have the exact opposite effect. Instead of following your own schedule, you’ll be at the hands of someone else’s schedule — which is frustrating, to say the least.
With Red Handed directly connecting you to landlords and available properties, you can browse the most sought-after options from anywhere, at any time. No need for a broker to locate what properties they think might be right for you — you can view all the details and contact the lister yourself. No lengthy negotiations are necessary.
2. You’ll skip the extra fees and costs.
Why pay extra for a commercial real estate broker when you can go straight to the landlord at no extra cost? Leasing or purchasing a space in a sprawling city like New York already comes at a hefty price, and it’s a no-brainer to save where you can. When you hand-select a property that’s right for your business and budget, there’s no time wasted going back and forth with a broker. And when landlords find tenants without a broker, they don’t have to hand over commission fees, which typically run from 4-10% of the total sale.
3. You’ll always have your best interest at heart, but a broker might not.
Brokers typically juggle the handling of several deals at once. The hard truth is, your deal may not be their first priority. A bad broker is likely to leave you hanging and only prolong the search process. It’s possible that your agreement isn’t promising the highest commission for them. In that case, you can’t guarantee that you’ll be the brightest blip on their radar. Low priority clients may not receive the attention they absolutely deserve. A commercial real estate broker is working a job, so while you’re trying to find the best space for your business or lease to a reliable tenant at the best price for you, you need to make sure that everyone’s in your corner.
4. Many commercial real estate brokers rush the process, leaving you stuck in a bad lease agreement.
Speaking of commission-hungry brokers… Commercial real estate brokers often lack the incentive to take their time with your deal. Too many future tenants and buyers trust their brokers to negotiate their deal with the utmost care, and too often, this trust comes back to bite them. Some commercial real estate brokers will rush through a deal to get paid since they often don’t get paid until the agreement has been reached and signed. A rushed deal may leave you with terms that don’t represent your interests, like too-high rent and an extended lease. With an investment as big as commercial real estate, you should never feel pushed to take part in a sale that you’re not completely comfortable with.
5. Commercial Real Estate Brokers claim to have access to exclusive properties, but…
The truth is, brokers often don’t show you their whole hand. Sure, the access to off-the-market prospects sounds nice, but you won’t benefit from that advantage if they decide that a standout property isn’t the best fit for you. This could happen if they don’t have a grasp on your list of needs and wants. They might also wish to reserve that property for a buddy of theirs. If their priorities lie elsewhere, you might not end up seeing a property that could be perfect for you. But luckily, there’s another option for potential commercial real estate buyers and sellers — and it’s cutting out the broker completely with the help of Red Handed Co.
At Red Handed, we’re not only making it possible to bypass the downfalls of questionable commercial real estate brokers. We’re also making it simple, streamlined, and optimized. By connecting landlords directly to potential tenants, you become your own broker. Potential tenants can browse hundreds of the hottest NYC properties yourself. Landlords can connect with tenants while skipping the commission fee. By cutting out the middleman, the specs don’t get filtered through the eyes of someone that might not want what’s best for you.
