How to...Choose a commercial real estate broker

<p>Leasing, purchasing or building space for your business is a huge undertaking. Considering the amount of money involved and the effect location and facilities will have on nearly every aspect of your company, it's important to invest time and energy in finding the right commercial real

estate broker.</p><p>As with many professional services, you must first determine your needs and your budget. You will know right off the bat, for instance, if you're looking for office, industrial or retail space, and most likely if you will be leasing or buying. If you want office space, determine if you will be seeking Class A, Class B or Class C space. </ p><p>Class A office space means larger, premier buildings with high- profile locations that are easily accessed. Class A buildings have on-site management, impressive lobbies and amenities galore, and they usually rent for $27 to $35 per square foot per year. Class B buildings, which generally have good locations, professional management and some amenities, rent for about $22 to $30 per square foot per year. Class C space is no-frills.</p><p>It's usually found in older buildings or converted industrial buildings, without lobbies or amenities, and it costs about $15 to $21 per square foot per year.</p><p>Once you have narrowed down your needs, you can start shopping for a commercial real estate broker. Don't just take out the phone book and start making calls. Ask for recommendations from others who have leased office space. Commercial real estate lawyers, bankers and architects, who work with commercial brokers, can also recommend good ones. You might contact professional commercial real estate associations, which require its members to meet certain standards, for a list of brokers in your area.</ p><p>The broker you choose should have a breadth of experience in the type of transaction you require. Not sure if buying or leasing space is the best route to take? Be sure the broker has the expertise in both arenas to help you fully evaluate your options. </ p><p>Ask for examples of what the broker has accomplished in the past for other clients. While you're at it, ask for the clients' contact information, so you can get their take on the broker's performance. Is the broker well-connected with commercial real estate companies and builders? Does he have a proven ability to negotiate on her clients' behalf? Does she attend professional seminars to further his education in this dynamic field? Does the commercial real estate firm have the resources to meet your needs? </ p><p>It's important to choose a broker with whom you're comfortable. Does he strike you as an individual of high integrity? Does he have a high energy level? Does he have the appropriate time available to devote to your company? </p><p>A good broker will take the time to get to know your business and your needs. He can help you determine priorities. For instance, perhaps you could be flexible about the town you lease or buy in, but you absolutely must be located near public transportation. </p><p>Because office leases tend to have minimum time periods, typically five to 10 years, you must have a business plan in place before leasing space. This plan should take into account employee and revenue projections for the time period of the lease. A commercial broker who is an experienced and skilled negotiator can work with builders to create provisions in your contract in case your space needs change. For instance, you can request the right to relocate within the landlord's properties during the initial lease term with a minimum penalty. Or you can request the first right of refusal on space adjacent to yours, should your space requirements grow. Be sure to ask the brokers you interview how they would suggest planning for fluctuating space needs.</p><p>The Checklist</p><p>Before you search for a commercial real estate broker, determine your needs and budget. </p><p>The broker you choose should have a breadth of experience in the type of transaction you require.</p><p>Get recommendations from others who have leased office space, as well as from lawyers, architects and bankers who work with commercial real estate brokers.</p><p>Ask for examples of what the broker has accomplished in the past for other clients.</p><p>If, when you meet with a broker, you sense that your business will not be a priority to him or her, move on to someone else.</p>