How can you tell if your business is bringing on a competent professional to provide real estate assistance for your current needs? It doesn’t begin with a degree of any kind – there are no educational requirements to practice real estate. And it doesn’t end with a license. All real estate agents must hold a valid state license to operate. That can be obtained after passing a rudimentary residential real estate-oriented school (if required) and a relatively simple state test. But neither of these licenses qualifies an agent to perform competent commercial and/or industrial real estate services for your business. So what does?
You need to look far deeper for the kind of qualifications that indicate experience and knowledge. The bottom line is that all vetting for the right industrial real estate agent must be done by you and your business.
Some agencies specialize in niche markets such as multi-family, retail, office, land, investment, industrial, etc., and it’s almost always wise to use a firm that specializes in commercial transactions. Be aware that each commercial discipline is highly unique in its nature, with each unique subcategory mentioned above requiring highly specialized knowledge, experience, relationships and agent standing within the field. Your business cannot afford to be the lesson – your agent should not be cutting his teeth on his chosen field of practice during your transaction. Care to be the second root canal your new dentist is performing? Partnering with the wrong real estate agent can be even more painful!
After identifying some agents that have experience, expertise and are well recommended within the type of real estate you are planning, look deeper still. Some agents have chosen to embark on a lengthy course that qualifies them as Certified Commercial Investment Managers (CCIM) designees. These designees have shown competence in investment sales and they understand commercial sales, leasing and investment. If you are leasing or buying a facility, having a CCIM on your team will be in your favor. Read more on the value of the CCIM designation.
SIOR is also another trade designation that indicates the recipient has completed certain transaction volume minimums over a period of several years, making this another good qualification for an agent on your team.
Your business will benefit significantly from the benefits the right agent brings to your transaction. There is no added cost to use the best, and in most instances, using the best agent will actually save you time, money and certainly the frustration and the pain from running into unknowns along the way. It is well worth your time to research the agent you plan to use. The right agent can greatly facilitate your transaction, leaving you free to deal with your business needs. Don’t settle for the basic qualifications. Inquire about what makes an agent stand out from the pack.