Michigan Commercial Real Estate

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The 4 biggest mistakes companies make when looking for office space

Big Mistake #4 - No Representation.

You will find nothing more frustrating and unproductive than driving around aimlessly, calling every sign you see. This is also a sure-fire way to end up paying more for your lease. There are more signs up in front of properties than in the past 10 years. Without a clear understanding of which properties have the right space for your needs, you will spend countless hours driving around making cold calls and hoping for a callback. If you do get a callback, what questions do you ask for your specific need? How will the answers compare to your business model and the market?

Big Mistake # 3 - Trying to manage the project yourself with multiple brokers.

Just getting the information (see Big Mistake #4) is hard enough. Herding cats would be easier than trying to coordinate the necessary contact with multiple agents. You need timely feedback and updates. You need consistent information organized to each property. Commercial property tours are set by appointment, with multiple people at each site. Trying to manage multiple agents results in disorganization, inaccurate information, and time wasted. It is important that you have one point of contact to act as your voice, to filter out unnecessary sales pitches and eliminate useless information & options that are not a fit for your business model.

Big Mistake # 2 - Lack of trust and confidence in your agent.

You need to be comfortable with the broker representing you. It is imperative that he fully understands your requirements as well as any limitations, concerns or specifics of your business that impact your property choice. Without that information, your agent will not be able to command the best deal from landlords and owners. Sudden negotiating changes will diminish your position and creates an opportunity for lost time and money. With trust in your broker, these changes will not occur, and you will get the best deal on your commercial property transaction.

Big Mistake # 1 - Looking for commercial real estate with inadequate representation.

To gain the best deal, especially in a down market, you need representation. It is critical that your broker have a complete understanding of the market, and not just the properties the broker represents. Your broker should know and understand the property owners and landlords, and fellow agents and brokers.

Most importantly, if they do not have the expertise for your requirements, they should disclose that to you and work to get you the support you need.

Referrals from other commercial agents and brokers, continued customer referrals and consulting contracts are evidence of my expertise and knowledge of this market. My business is relationship driven, and primarily comes by referral.

 

Comment balloon 13 commentsJames Iodice • March 29 2007 12:26PM
The 4 biggest mistakes companies make when looking for office space
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Big Mistake #4 - No Representation. You will find nothing more frustrating and unproductive than driving around aimlessly, calling every sign you see. This is also a sure-fire way to end up paying more for your lease. There are more signs up… more