The Tenant Quiz – Industrial Real Estate Q&A
agent questions to property search, and the often-misunderstood mystery about who really pays what, here are nine questions we hear at Miller Industrial Properties in northern Nevada pretty regularly. How well would you pass this tenant quiz? If our agents represent you, our guess is you’ll fare well.
The Tenant Quiz
Q: Aren’t all real estate agents similar?
A: Would you ask a question like this about lawyers or doctors? Just as these professionals have varying specialties and credentials, so do industrial real estate agents. When you’re considering your options for an agent, make sure you’re clear on what makes one agent different from the next with questions like these:
Do you usually represent the landlord or the tenant?
Do you have experience representing my kind of transaction?
What can you tell me about the current market conditions, and how that might impact my needs specifically?
Q: I called the name on the sign in front of a property. I can use that agent, right?
A: You’re certainly free to do so, but we recommend using an agent who would represent your interests – not the landlord’s. The agents on signs are contracted to exclusively represent the owners of the property. If you’re the potential tenant or buyer, that isn’t you.
Q: Can’t I search the web to find a property I need?
A: Sure. But by doing so, you’ll miss out on a lot of current, accurate information because you won’t have access to all available locations. A qualified real estate agent will save you time by producing accurate information that’s relevant to you and your needs.
Q: Isn’t it smarter to having multiple agents working for me?
A: It might seem that way, but it will actually work against you. The industrial real estate wold, particularly here in northern Nevada, is relatively small. It will quickly be discovered that several agents are working on the same transaction, which generally results in all agents dropping the request.
Q: Won’t I save money by using the landlord’s agent?
A: No. The landlord’s agent is required by contract to serve the landlord’s interests. That means getting the highest lease rate and most favorable terms for the landlord. Another motivator is that the higher the rent or the sale amount, the more fee the landlord’s agent makes on the transaction. Your own agent advocates and uses market data to counteract the landlord’s interests and help secure the very best deal points possible for the tenant.
Q: I’ve heard that using an agent involves an additional fee. Is that true?
A: No. Landlords or sellers pay a fee to their agent in the transaction. A tenant’s or buyer’s agent receives a portion of that fee for representing you.
Q. Is it okay to interview multiple agents? What is the correct way to go about doing so?
A. Yes. It’s important to be transparent, so don’t try to hide the fact that you are interviewing multiple agents. It may actually motivate the agents to work harder to gain your business.
Q. At what point does an exclusive agency/relationship exist?
A: An exclusive relationship between the tenant/buyer and an agent does not exist until you have something in writing. If you ask an agent to write an offer for you on one particular property, that agent will represent you on that property. 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. Do industrial agents have access to off-market listings or offerings?
A: Absolutely. Industrial agents spend a lot of their time touring warehouses and interacting with WH managers with varying needs. Sometimes, companies do not wish to actively market their underutilized warehouse space but advise agents to bring offers. Similarly, many building owners who have recently purchased an investment property don’t want to re-list right away, but would consider offers – this is usually communicated to agents in passing interactions.
More questions? Contact Miller Industrial Properties for answers today.