This month I’m going to offer a two-part series. Both articles will examine the advantages of leveraging the expertise of a commercial broker for commercial real estate transactions. This first article will cover the benefits of a commercial broker from a seller’s perspective; I’ll follow up in part two with a look at the benefits from a buyer’s point of view.

Before we delve into the many reasons why using the services of a commercial broker is a good idea for anyone looking to sell commercial real estate, let me just make a few general comments …

 

Commercial real estate is truly a specialty. A commercial real estate transaction is a complex undertaking that involves thousands of details and interrelated tasks. It can be very difficult for someone without a thorough knowledge of the commercial real estate business to manage a transaction efficiently and without missing details that would result in unnecessarily wasted time and money. The commercial real estate industry, along with all of the rules and regulations that govern it, is very dynamic. Things can change so quickly that even seasoned professionals can fall behind if they are not diligent about staying current.

I sometimes compare commercial brokers to attorneys. When people (that are not legal professionals) have legal issues, they could try to represent themselves, but it’s not a good idea. Without the vast knowledge and understanding of the minute details that a qualified attorney possesses, there’s a high probability that details could be overlooked and costly mistakes be made. Good attorneys know the most current laws and the smartest strategies and tactics for addressing legal issues. An attorney is an expert consultant for legal issues, and a commercial real estate broker is an expert consultant for real estate transactions.

A commercial broker can represent buyers, sellers, landlords and tenants. So let’s take a look at what a broker can do for sellers.

One of the most important benefits that a reputable broker offers a seller is effective marketing. Obviously, when sellers list properties, they need to get the word out to viable buyer prospects. This is how they reach the best prospects and they get the best price for the property. Unlike most property owners, quality brokers have a wide variety of marketing tools and resources at their disposal and the expertise to use those tools to maximize the exposure of the property to the target audience most likely to be interested in buying. Because a broker has these tools in place and uses them often, he or she will be able to run each marketing campaign efficiently and cost effectively. Marketing for-sale properties is something most brokers do practically every day, so the process usually runs like a well-oiled machine. Once the seller submits the details of the property, the broker will have it in the MLS system, on multiple internet real estate sites, and in all the right print publications almost immediately. In most cases, signs, flyers, email blasts, direct mail and other communications channels will also be used to enhance the campaign. In addition to the standard marketing channels, if a broker has been working in the area for an extended period of time, he or she has probably built up a network of relationships with clients, investors and other brokers that will result in some excellent leads.

An experienced broker may also have the talent and ability to look at the property from different perspectives and recognize variables that the owner didn’t notice. A broker can frequently help the seller identify the highest potential for the property based on factors such as location, square footage, property type and more. For example, a property near the hospital may have the most value as a medical facility. A building near the courthouse may be ideal for an attorney’s office. A specific example in Wilmington is on the corner of Oleander Drive and Independence Boulevard. Remember the old Exxon station? Today it’s a thriving Starbucks. It’s on the corner of a busy, high-visibility intersection that’s easily accessible from either side, and near business and residential areas – it’s the perfect spot for a Starbucks.

Proactive commercial real estate brokers also will offer sellers ideas about the best way to utilize their properties. Understanding the variety of ways a particular property can be split or subdivided can expand the appeal of the property to a broader audience. A good broker will run scores of analytics to determine the true value of the property for a range of business scenarios, and then find the appropriate target buyers.

The bottom line is, a commercial real estate broker is a specialist that has the tools, knowledge and connections to help sellers locate buyers efficiently and cost effectively.

Continue reading “The Benefits of a Broker In Commercial Real Estate (Part 1 of 2)”

London

Coldwell Banker Commercial Real Estate Enters London Market

Coldwell Banker Commercial Affiliates announced today that it will be expanding its international presence with the affiliation of Coldwell Banker Commercial London, which has opened an office in London, marking the brand’s entrance into this key market. The expansion complements the brand’s presence throughout North America, South America, Africa, Asia, Australia and Europe.

Chris Palmer will serve as chairman of the independently owned and operated firm, Coldwell Banker Commercial London, and is joined by partners Robin Paterson and Alex Upson. Palmer brings more than 40 years of career experience in the commercial property investment industry, having previously served as regional chairman for Richard Ellis in Asia where he expanded that office network to cover China, Japan, Singapore, Indonesia, Philippines, Vietnam and India. He is also a founding member of Square Bay (Property) Limited, which provides land acquisition, planning and residential development advice, and was responsible for conducting some of the largest property transactions on record during his 40-year career.

“We are confident the London office will thrive under Chris Palmer’s leadership in light of his proven success in commercial real estate, his investment expertise and market conditions in the area,” stated Fred Schmidt, president and chief operating officer of Coldwell Banker Commercial Affiliates. “London is the gateway to the financial east and a cornerstone market in the world. Entering London and the U.K. brings new and exciting opportunities for our worldwide network.”

The U.K. market, and London particularly, has become increasingly attractive to foreign investors because of its position as Europe’s financial hub. International investors lead the commercial market while domestic investors in the U.K. focus on residential investments. The area is stable and free from market disruptions because of its strongly defined legal codes and culture of investment, with hotel and commercial space being areas of high interest.

“With increased global confidence in the British markets, we chose to affiliate with Coldwell Banker Commercial because of the brand’s well-established profile,” stated Palmer. “The London commercial market is flourishing, having traded an outstanding £30.7bn in the first half of 2015, much of which included capital coming from the U.S. and Asia Pacific. We believe prospective clients will recognize and trust the sound reputation and strong profile of the Coldwell Banker Commercial® brand and the Coldwell Banker Commercial London office should make some real waves in the London market.”


About Coldwell Banker Commercial Affiliates Coldwell Banker Commercial Affiliates is a division of Coldwell Banker Real Estate LLC. The Coldwell Banker Commercial brand has been a premier provider of franchised commercial real estate brokerage offices, recognized globally as a company that puts the client first while delivering individual, distinctly different service. Coldwell Banker Commercial affiliates cover territory throughout North America, South America, Europe, Africa, Asia and Australia. Coldwell Banker Commercial is an industry leader in providing commercial real estate solutions that serve the needs of tenants, landlords, sellers and buyers in the leasing, acquisition, disposition and management of all property types. Each office is independently owned and operated. Coldwell Banker Commercial® is a registered trademark licensed to Coldwell Banker Real Estate LLC. For more information, visit: www.creconsult.net