What You Need to Know About Searching for Commercial Real Estate

• As a business owner or manager in need of new commercial space, it’s important to get professional help by picking a commercial REALTOR® you feel comfortable with. It’s typically not a good plan to simply do your own research or drive around calling off signs or working with multiple agents. Find and commit to working with one commercial REALTOR®.

• Understand how your commercial REALTOR® gets paid. In most cases, your REALTOR® is paid a commission from the landlord or seller, so the services provided by the REALTOR® you choose to work with don’t directly cost you anything. Therefore, don’t be hesitant to find and retain a REALTOR® you trust and let them do their job to represent you and negotiate a good deal for you.

• Make sure you understand who is representing who in the transaction. When a REALTOR® has their sign on a property they are the “listing agent,” it and it means they are representing the landlord or seller, not you. While the listing agent is still obligated to act fairly and ethically to you as the prospective tenant or buyer, they are technically trying to get the best deal for their owner or seller.

• Buying versus leasing. It is very common for commercial transactions to be a lease, not a sale. Leases typically go for three to five years but can be shorter or longer. Many businesses prefer not to own their property for a variety of tax, financial, or personal reasons. So it’s important to have a commercial REALTOR® you trust to assist with the complexities of negotiating lease terms and advising on language and your general interests. It’s also quite common to additionally seek advice from an attorney on lease language and your rights as a tenant.

• Allow for plenty of time for the overall process. It’s common for the process of searching, identifying, and acquiring your new property to take six months or more especially if the property involves a lot of construction or remodeling. As a business owner, you need to constantly be aware of your business’s strategic and specific needs relating to real estate so you can plan accordingly.

Do you need a brand-new facility built for you?

If you are unable to find an existing property that meets your needs, you may wish to acquire land to build on and/ or engage an investor developer to build a new facility and lease it back to you. The JBC Commercial team is experienced in all aspects of the real estate development and construction process and can assist with building a new facility, owning it, and leasing it to your business long term.

Contact Jim Buus at JBC Commercial

jim.buus@jbccommercial.com 701-929-6000