Who needs a commercial real estate broker

Over the course of my career I have heard the question asked 'Who needs a commercial broker when I can do this myself?'

Well, you can do it yourself, just as you can repair you own PCs, fix your own HVAC system, or rewire your office.  You can do it, but do you have the time and knowledge to do it correctly?

Back in 2008, 2009 when you could tour a space and take your time deciding how you want to approach the owner, or maybe just look at another 20 or 30 spaces that were vacant, you could certainly do that. You knew when you were good and ready you could go back and make an offer and see how it went.  If it didn't work out, you could move on to another one, there was a never ending supply of like spaces.  Learn as you go was possible.

Fast forward to today. The market has turned.  You no longer have time to experiment. The industrial vacancy rate is at a 14 year low, property moves quickly.  You don't have the time to experiment. In todays market you have to find space quickly (or someone else will) and respond with a meaningful competitive offer.

A commercial real estate broker knows  how the market is reacting.  They can find a space quickly using the search engines that are not readily available to the public. They can sort through properties and remove ones that don't fit saving you time and allowing you to focus only the ones that work for you. That brings us to the Letter of Intent (LOI). Once the property is identified as a possible fit an LOI can be submitted quickly and effectively.  A broker knows that while the market is tight there are still deals that can be made that will save you money.  You no longer have the time for endless negotiations, since there very well may be another purchaser, lessee ready to scoop up the space you want. One other point for lessees- a relationship is established between the lessor and the lessee that will be ongoing for a number of years.  Negotiations can be tense and contentious  so why not allow the broker to absorb those bad vibes allowing you to establish a much friendlier relationship.