Ready to hire your next broker? Make sure you’re asking these 3 questions first.

Commercial real estate is often the second or third largest expense for businesses; and as a business leader you can see it’s vital to find and negotiate the right deal for your business. But when every broker claims to be able to secure your dream-worthy, recruiting-enhancing, and culture-driving office, how can you truly determine who to trust with such a long-term and costly decision? Being advocates for tenants, we’re proud to equip you with 3 questions to ask your current broker to uncover where their loyalties lie.

Why is a conflict of interest so important to avoid if it is so common to encounter?

While conflicts of interest are not accepted in any other industry, unfortunately it’s the social norm in the commercial real estate world. More unfortunate than that, business owners, space occupiers, and tenants like you often get the short end of the stick.

 

Real Examples of How a Conflict of Interest Could Affect You:

  • If your broker is conflicted,
    they might only show you properties that they, or their firm, represents. This limits your pool of available properties and you might miss out on the one that’s ideal for your business.
  • If your broker is conflicted,
    they may not be able to help you get rental relief or help you find benefits when it’s at the landlord’s expense. This could mean you’re not getting as many concessions, or they have left language in your lease agreement that is landlord friendly, rather than in your best interest.
  • If your broker is conflicted,
    they may not fight for the best financial terms for your business. Since tenants have less transaction volume than most landlords, brokers will do anything to stay in the good graces of their multi-deal landlord clients. In order to protect that high-profit relationship, they do whatever they can to get the landlord the best deal—putting your best interests in the back seat.

READY TO UNCOVER IF YOUR BROKER IS REALLY ON YOUR SIDE?