Tom Miller, CCIM
Nine Questions for Industrial Real Estate Tenants
Nine Answers for Industrial Real Estate Tenants
Q: Are all real estate agents fairly similar?
A: Not really. Just as professionals like doctors and attorneys have varying specialties, credentials, and experience, so too do industrial real estate agents. The best way to quickly determine what makes one potential agent different from another is to ask the right questions. We suggest starting with these:
Do you usually represent landlords or tenants?
Do you have specific experience with my kind of transaction?
What can you tell me about current market conditions, and how they might impact my needs?
Q: Should I call the agent on the property sign outside of a building that has my interest?
A: You certainly can, but it means you’re reaching out to the agent who’s contractually obligated to uphold the best interests of the landlord – not yours. If that doesn’t sound worrisome, we suggest reading this.
Q: Can I search the web to find property?
A: Sure. But you’ll likely miss out on current, accurate information because you don’t have access to all the right websites. A qualified real estate agent will save you time by producing accurate information that’s uniquely relevant to you and your needs.
Q: If one agent working for me is good, isn’t it better to have more agents?
A: No. In fact, this approach will work against you. The industrial real estate wold, particularly here in northern Nevada, is small. It won’t take long for the several agents working on your transaction to realize what’s happening, which will likely result in all of them dropping the request.
Q: Will I save money if I use the landlord’s agent?
A: No. As mentioned above, the landlord’s agent is required to serve the landlord’s interests, which means means securing the highest lease rate and most favorable terms for the landlord. Another motivating factor is that the higher the rent or the sale amount, the more fee the landlord’s agent makes on the transaction. Your own agent will advocate for you, using market data to counteract the landlord’s interests and help secure the very best deal possible.
Q: Does using an agent involve an additional fee?
A: No. Landlords or sellers pay a fee to their agent for the transaction. The tenant’s or buyer’s agent receives a portion of that fee for representing you.
Q. Should I interview multiple agents?
A. Absolutely. The best practice is to be transparent about your activities, so don’t hide the fact that you are interviewing multiple agents. In fact, disclosing the truth may motivate agents to work harder for your business.
Q. At what point does an exclusive agency/relationship develop?
A: An exclusive relationship between the tenant/buyer and an agent doesn’t begin until you have it in writing. If you ask an agent to write an offer for you on a particular property, that agent will represent you on that property. But if you sign an “exclusive representation” document with a specific agent, that agent will be entitled to commissions on whichever property you chose to lease or buy.
Q. Can industrial agents access off-market listings or offerings?
A: Yes. Industrial agents spend a lot of time touring warehouses and interacting with managers . In certain instances, companies won’t actively market their underutilized warehouse space, but they still advise agents to bring offers. Many building owners who have recently purchased an investment property don’t want to re-list right away, but may consider offers. This information is often made clear to agents in passing interactions.
If these questions aren’t enough, we’re here to help. Contact Miller Industrial Properties for answers today.