There are many benefits to hiring a commercial real estate broker when you’re leasing or buying commercial property. Brokers use their market knowledge to ensure that any property you invest in is worth your resources. With a broker as your advocate, you’ll have someone to help you review documents and negotiate on your behalf.
As you search for the right broker, you may ask, “Should I hire a broker from a local or national firm?” While both options have their advantages and disadvantages, we recommend you consider a broker from a local firm for the following three reasons:
Brokers from local firms are experts on the local market and can provide you with all the information you need to make a decision regarding your property. They have experienced the ups and downs of the local market and have a clear understanding of current and forecasted trends. Their familiarity with major roadways, growing neighborhoods and other elements of your community will enable them to guide your property search.
On the other hand, a national firm may dominate one market but only have a small presence in another. These brokers may not be as familiar with your particular market and may rely on information from the internet. Odds are that you have access to this information too.
Local brokers will likely have established relationships with local title companies, lawyers, other brokers and even the seller/landlord, which will help the transaction run more smoothly. They can also give you recommendations on property management companies, contractor and lenders. Brokers from a national firm may not be able to provide you with these resources.
Local firms are also more likely to have an established reputation in your area. Brokers will strive to provide you with the highest quality service as they seek to maintain their image and even receive a referral from you. A broker who works for a national firm may have good reviews in another city but may struggle to navigate your specific market.
You may find you have better access to your broker when you work with a local firm. Some brokers from national firms must fly in from other cities to meet with clients, which means they likely won’t be able to meet you for a last-minute property tour. With a local broker, you also won’t have to worry about the confusion of coordinating phone calls across time zones.
When you hire a local broker, you receive direct access to their support staff. You can easily communicate with the accounting, marketing or transaction team to find answers to your questions.
While we recommend hiring a local broker, you may prefer to work with national firms due to their wide network. National firms more often have the resources to conduct extensive market research, which benefits you if you’re looking to expand into other cities.
In the end, the most important criteria when choosing a firm is that you trust your broker to represent you and your business. Click here to learn more about Menlo Group’s team of trusted advisors.