Your commercial real estate broker may no longer work for you.
If your broker has been caught in recent mergers and buy-outs that move private commercial real estate firms to large public companies, you might not know.
We at Commercial Real Estate Group of Tucson aren’t just talking about changes in the name of the company. Your broker may not be working for you anymore.
Loyalties May Shift
Why? Mergers and sales such as DTZ/TPG and Newmark Knight Frank/Grubb & Ellis may affect who your broker needs to look out for. These business activities change the dynamic of customer service and bottom-line consideration.
Becoming part of a large public company could force your broker into such practices as recommending to you only properties that are listed with the company.
Your broker may be required to think about the best interest of the owner or landlord in lease contract dealings, not yours.
Even tenant representation firms, whose sole focus should be you and not the building owner or landlord, may have to adjust their philosophy to fit better in the new corporate order.
Here are a few suggestions should you find yourself dealing with a trusted broker who now is part of a large public commercial real estate company.
Review your lease contract. Make sure you understand it. Be wary of suggested changes by your current broker that you feel may not be in your best interest.
Call your broker. Check in, make sure your broker remains your representative and find out how your relationship will change.
Remember why you chose a tenant representative. Commercial real estate brokers who are tenant representatives work on your side of the table in lease negotiations. They show you all relevant properties regardless of who’s listing them. They push for the best lease possible for your business. Make sure your tenant representative remains committed to you.
Shop around. You may end up keeping your current broker, but take a look at others in your market to make sure you’re getting the unbiased representation you deserve.