As a property owner, you’ve decided to put your building on the market. You’ve discussed your goals for your space with a commercial real estate advisor who you trust. The next step is to sign a listing agreement.
A listing agreement is a binding contract between you and a brokerage. The document gives exclusive rights to the brokerage to sell or lease your property.
The listing agreement will outline terms such as the following:
Length of agreement: The duration of the contract is determined in the agreement. In commercial real estate, the length of the agreement is often one year.
Property information: The listing agreement will outline property information such as address, tax parcel, zoning, size and listing price.
Scope of broker’s representation: Your broker will list in the agreement exactly what services they will provide.
Brokerage fees: You agree to pay the broker for their services, and the contract details how much and when you pay. Typically, this amount is a percentage of the total considerations of the lease or sale.
Termination process: The contract should state the steps to end the agreement. Often you are required to provide 30 days’ written notice.
Many brokers have a listing agreement template meant to protect both parties. You should review the agreement with your lawyer before signing. You can then negotiate to change or remove certain verbiage.
Once you sign an agreement, you should share as much property information as possible with your advisor. This information could include floor plans, property inspection reports and operating expenses. You will also need to provide the advisor with access to the space to take photos and tour with potential tenants/buyers.
Then your commercial real estate advisor gets to work. The broker will market your property through a variety of means such as:
Your advisor will also provide you with regular updates about potential leads and negotiate a lease/purchase contract on your behalf.
Are you ready to list your property? Contact a member of our listing and sales team today!