Tom Miller, CCIM
Touring Industrial Real Estate – What Not to Do
Avoid this mistake so your agent can avoid this response.
During the lease or purchase process of any industrial real estate property, the property tour is invaluable. While a given property may work perfectly on paper, a physical walk-through is a necessary step to move forward in the sale or lease process. It’s also a time when nearly every client makes critical and entirely avoidable mistakes that can seriously affect his or her position in the potential transaction. And it all comes down to your interaction – intended or otherwise – with the agent representing the landlord or seller.
We cover this topic extensively with our free download, Property Tour Guidelines, and if you’ll be purchasing or leasing industrial real estate in the near future, it’s worth the read. For the overworked reading this post, here are the highlights.
Just as your agent represents your interests solely, the agent hired by the landlord or seller will be on the tour and is absolutely loyal to their client – and that is the landlord or seller. Savvy agents aren’t content to merely unlock the door and turn on the lights – they will take every opportunity to learn about you, your company, your needs, motivations, timing, constraints and anything else you’re willing to share. Here’s the problem. In almost every instance, this information can and will be used to advance their negotiating position in the potential transaction – at your cost.
The good news is, your agent is there to protect you. Let him do his job by following this golden rule – the less you say, the better. It’s the innocuous, off-the-cuff comments that can do the most damage, so either ask your agent any questions have or take notes to address with your agent privately later, and deflect any direct questions from the landlord or seller’s agent with a pleasant, “Our agent will get that to you later.”
Consider this – the only person in this scenario who doesn’t sell or lease industrial real estate for a living is you. Do what you can to advance your position in the potential transaction by being mindful of your words and actions. And download our free Property Tour Guidelines for specific tips designed to increase your negotiating leverage.
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