Avoiding Self-Generated Problems in Industrial Real Estate Transactions
1. The client can’t communicate effectively with his agent.
Without effective communication between client and agent, it’s next to impossible for both sides to be clear on what is wanted, and when, and why. It’s a recipe for wasted time and effort. The most critical foundation to a successful transaction is frank and honest communication with your agent. Always.
2. The timing is off.
Too early or too late can both be problematic. When you start the process too early, you’re dealing with old news by the time you really get your property searching going. Projects are only new and fresh once, and you don’t want to waste any momentum. Otherwise, you risk a lack of energy from the landlord side and maybe even less-than-stellar pricing.
When your timing is too late, your options become limited and you’re forced to work with what’s on hand now. So when should you start? The exact time will vary from one tenant to the next. The wisest course of action is to consult with your real estate professional approximately a year in advance of your lease termination, and longer if you have significant infrastructure within your facility. This gives your agent time to advise you on the perfect timing for your scenario. Use your agent as a free, professional consulting resource in this regard. You should expect excellent advice from these professionals, just as you would an attorney or doctor.
3. You’re engaging more than one real estate professional.
If one agent is good, two must be better. It sounds about right, but it’s always a bad idea. In short order, both agents will realize that they’re working the same deal – and then everyone gives up. At that point, no one cares to engage on any terms, as they’ve already wasted time and effort. Resist the urge to hire a team, and commit to the best agent. You can always change agents at a later date, but it’s best to tell your agent first.
4. Calling off real estate signs is usually a risk.
You can read more about this topic in our post, “The Hidden Trouble with the Landlord’s Real Estate Agent,” but here are the highlights: By calling off the real estate sign, you are contacting the agent who has been hired to represent the landlord – and the landlord’s interests. Any communication with an agent representing the other side is best handled by your agent. They know what to say and what not to say, which is just as important.
The bottom line to launching a smooth and ultimately successful transaction is simply, choose an experienced agent with a strong track record and talk to him early in the game. You’ll get the benefit of his expertise before things even begin. He can review your plans and expectations, and you should be prepared for some degree of adjustment based on your agent’s experiences. If you meet with a potential agent and this is not the case, you’ve either created a perfect plan all by yourself or you need to meet with a better agent.
For more tips on finding the right agent, we offer the following: