It’s understandable that someone looking to buy or lease industrial real estate thinks they can save some money through a bit of hard work and perseverance. But what are you really saving – and what are you really giving up – when you try to navigate your own industrial real estate transaction? Here are the pros and cons of using an industrial real estate agent here in northern Nevada.
The Potential Savings
One of the main reasons a business or individual will forgo an agent is to save on the broker’s commission. But the truth is, you’ll rarely pay out of pocket for this commission. Typically, the landlord budgets a commission for the listing agent, and tenant broker will get a portion of that once the lease is complete.
Then there’s the savings a client enjoys by virtue of his agent’s experience, which include market knowledge, access to privileged information, and negotiating prowess. Sure, you as the business owner may be able to navigate through the process solo, but there are likely things you’ll miss that would have maximized your negotiation or served you down the road. Truly, an agent representing your sole interests during this process translates into money in your pocket.
Just as the listing agent is duty-bound to protect the landlord’s interests, so is your agent required to protect yours. Imagine the disadvantage, then, that befalls the business owner representing himself when it comes time to negotiate. Your agent will not only streamline the property search process, he’ll bring his considerable experience and expertise to the negotiating table.
Consider also the danger of working directly with the listing agent – that is, the agent on the sign of the building you’re eyeing. It makes sense that they would show you other properties that they represent. After all, your interests aren’t their priority. Working with an agent of your own means you’ll be shown more options from the start.
The Value of Your Time
Searching for property can be a time consuming process, particularly when you’re doing it in addition to running your business. At some point, you’ll need to ask yourself what your time is worth, and whether it’s really in your best interest to be doing all the footwork. Between inspections, negotiations, renegotiations, paperwork and offers, the process will only get more intense when the deal progresses. An agent, with his experience in this kind of work, will streamline things.
The Edge of Experience
Being in the business of industrial real estate affords firms an edge. At Miller Industrial Properties, we maintain comprehensive databases of what’s selling or leasing, what’s sold or leased, and what’s about to be for sale or lease. We have connections within the industry and the type of insider knowledge that pays off for the client time and time again. We’re intimately acquainted with the northern Nevada market, and we stay abreast of trends, people and proposals. All of this benefits our clients, and that’s why we do it.
The benefit of experience quickly becomes clear during negotiations. A broker who negotiates for a living is going to spot things that you, a business owner, may not. Having a calm, credentialed and experienced advocate on your side of the bargaining table can only be a good thing.
Questions about industrial real estate? We’re here to help.