Category : Commercial Real Estate

Commercial Real Estate

Is Having a Commercial Real Estate Broker Necessary to Close a Deal?

An important question is how much technology will be able to replace the human players within commercial real estate deals. That said, most experts agree that it is highly unlikely that it will ever be possible for brokers and agents to be fully automated, this despite an increase in things such as QR codes. However, a question that does come up is whether or not it is truly necessary to have a broker present during every deal.

Understanding the Roles in Commercial Real Estate

There are many different players in every commercial real estate deal. It doesn’t matter whether people have an existing space and wish to renew their lease, whether they want to start a brand new lease, or whether they wish to purchase a piece of commercial real estate. There are always two specific sides to the story. First, there is the agent who represents the tenant or buyer and negotiates on their behalf. Second, there is the individual who represents the building’s owner. It is possible in certain states for someone to represent both, and California is one of those states. This is why Orange County is also home to a number of dual agencies, although they do have to adhere to some regulations.

To help both tenant and landlord feel the transaction is fair and transparent, according to Kadosh, brokers may come up with certain caveats in deal structures, word agreements in certain ways or have parties provide tax returns, sales returns and other data, especially with large institutional clients.

The Importance of a Good Broker

Both sides of the deal, however, even in a dual agency, have a specific purpose. The owner’s agent, for instance, is responsible for finding a buyer or a tenant for a commercial property. They do this in a variety of ways, including marketing to prospects. Agents are very good at advertising properties, using signs and online advertisements for properties and finding inquiries and interest in them. At this point, however, they often find themselves quite overwhelmed with the elements within a negotiation. It is vital, therefore, to have a good broker on board.

Such arrangements will work just fine when your broker is showing you properties represented by brokers in other offices. However, the situation gets cloudy if your broker’s own office has taken listings for spaces that you want to see. This puts your broker in an awkward position. The broker is duty-bound to find you the best space, regardless of who has the listing, but is also committed to contribute to the success of the office.

The Role of the Procuring Agent

Meanwhile, there is the procuring agent who wants to find a space for the would-be tenant. Should there be a simple list that shows all available buildings, and should this list be easily accessible, then there would be far less need for a broker, although this role would not be eliminated in full. This is seen, for instance, in residential properties because of the fact that these are listed on a variety of different websites. Commercial real estate agents do not have this luxury, however, relying mostly on Loopnet. Unfortunately, this isn’t properly governed, nor is it overly accountable, which means that it can’t truly be depended on.

Perhaps a good analogy of the broker is that of the flight attendant. Many believe that the role of the flight attendant is to serve drinks and make people have an enjoyable time. In reality, their role is to help individuals should things go wrong. Yet, it is very rare for things to actually go wrong, which is why they actually have the time to serve drinks and food as well. They can never be fully replaced or fully automated, however, no matter how good a self-serve system they may be able to implement.

Read More
Commercial Real Estate

Survey Demonstrates Recovery Of CRE Market Has Extended For Three Years Although Retail Industry Is Retrenching

According to the Allen Matkins UCLA Anderson forecast, the office building market in Orange County in particular is now very positive.

The sentiment for San Diego and Orange County markets has also rebounded from the June 2017 survey. In each of these markets this indicates future rental rates and vacancy rates will be better than they are today.

Read More
Commercial Real Estate

2017 Was The Year Of Hotel Investments In Orange County And The Rest Of Southern California

It seems that 2019 was the year in which people started to invest in hotels across Southern California. This makes sense because it is a hugely popular tourist destination and visitors are happy to pay quite significant prices. So much so, in fact, that there are now some concerns about affordability for the average middle class Californian. Southern California hotel investments are on the rise.

As the weather warms up, families across California are planning summertime visits to the beach. But overnight trips to the state’s famous coastline are becoming increasingly difficult for middle-class residents to enjoy because the price of admission is soaring.

Read More
Commercial Real Estate

Commercial Tenants In Orange County Could Be Facing A 40% Rent Increase

Many businesses in Orange County choose to lease their building after weighing up the pros and cons of leasing vs buying. When people lease a property, they will need to pay a monthly amount to their landlord. There are times, however, where the monthly rent can increase, sometimes by as much as 40 percent!  Learn why their may be a commercial rent increase in orange county.

Read More
Commercial Real Estate

How To Get Your Budget Right For A Commercial Real Estate Lease

Rent is usually a substantial cost for a business. This is why it is so important that, before you sign a commercial real estate lease, you get your budget in order. Indeed, commercial real estate experts always talk about the importance of proper planning and preparation.

Read More
Commercial Real Estate

What Happens After A Listing Agreement Is Signed?

If you own a piece of commercial real estate in Orange County, there are three things you may want to do with it. Firstly, you may want to run your own business from the property. More commonly, you may want to lease it out, so that you can earn on your investment. Lastly, you may be in a position in which you want to sell the property.

Read More
Commercial Real Estate

Understanding The Hidden Cost Of Taking Out A Commercial Lease

Taking out a commercial lease is a huge moment, and one that you have to think carefully about. One of the reasons for that is because there are quite a few hidden costs that you may not have been aware of. It is also for this reason that you must have a team of professionals on your side when you are negotiating your lease. So what are some of the hidden costs, and how can you avoid them?

Read More
Commercial Real Estate

Huge Boom In Orange County Office Space

New research has shown that Orange County, CA, is currently the best place to buy office property. Specifically, the commercial real estate market in San Juan Capistrano is booming faster than anywhere else. This has made the city, and Orange County as a whole, very attractive for those interested in investing in commercial real estate.

Read More
Commercial Real Estate

Frequently Asked Questions About Commercial Real Estate

The field of commercial real estate is very interesting and important for a variety of  reasons. Naturally, business owners are interested in this type of real estate, whether for purchase or for lease. Furthermore, this field of real estate is also very interesting for property investors, including those who are part of a commercial real estate investment trust. However, it is also one that raises a lot of questions. Let’s take a look at some of the most important questions around.

Read More
Commercial Real Estate

Big Changes In The Real Estate Professionals Market In Orange County

There have been some very interesting appointments and promotions within commercial real estate firms in Orange County over the past few weeks. Firstly, the new Southern California-Hawaii division of the CBRE Group has appointed Lewis C. Horne as their president. This means he will now focus on Orange County, the Greater Los Angeles area, Hawaii, and San Diego. One of the offices he will head is that of Newport Beach.

Read More
1 2 3 4 5 6