This is truly an exciting time to be in commercial real estate. There is a positive outlook on the growth of the gross domestic product, the continuance of low interest rates, and an improving employment scenario. Locally/regionally, the capitalization of our strengths is moving us well on our Road To One Million mission. The vision of the upcoming Riverfront, Landing, Arena, etc. keeps us all engaged in our rekindled fondness of our community/region.
With this being said, it is fair to make the statement that more individuals will become involved with commercial real estate transactions. Therefore, looking for the right commercial real estate broker to partner with will become more vital. Here are some considerations to get you started:
Does the individual hold an active real estate license? Is the broker in good standing? This is basic, but it’s definitely good to start with this confirmation. Next, confirm she is a member of the Indiana Commercial Board of Realtors (ICBR). If she is, then she is also a member of the Indiana Association of Realtors and the National Association of Realtors. These two groups provide opportunity for professional development and the ability to conduct research and exchange information among members. Holding an active license and belonging to these organizations also obligates the member to meet continuing education requirements and abide by the code of ethics. The bottom line is more knowledge, access to current market data and professional accountability.
Does the broker have an accreditation in an area of commercial real estate expertise? The two most common are CCIM (Certified Commercial Investment Member) and SIOR (Society of Industrial and Office Realtors). CCIM requires numerous classroom hours studying financial analysis plus industry exposure. There are approximately 9,500 CCIMs in the USA. SIOR is based strictly on experience, transaction volume, education and ethical standards. There are currently 3,138 SIORs in 25 countries including USA. Of the 3,138 SIORs, 147 are women. That is 4%. There are only two mother and daughter SIOR teams in the world – one in Las Vegas, NV and one in Fort Wayne, IN!
Does the broker demonstrate good communication skills during the interview? It is important for your broker to listen and understand your goals, vision and expected time table. Does the broker effectively express recommendations and market knowledge that will assist you with your desired outcome? Communication remains critical during the negotiation stage with the final outcome being a satisfactory business decision for all.
Is the broker detail-oriented? Does the broker come to the initial meeting prepared? Is the package presented thoroughly, accurately and error free? This will be a good indicator of how the details will be handled during the entire transaction process. A good agent stays engaged throughout the entire transaction. An excellent agent stays engaged after closing/move-in.
