Commercial Real Estate transactions can seem like a foreign language upon first interaction. Lease terms, negotiations and contracts are enough to make you cringe. Having a broker to help represent you and your interests can make the process simpler and more enjoyable.
Once a brokerage agreement has been signed between broker and client, they can begin the tenant’s representation process. Once a relationship has been established between broker and client, typically there is a process that follows.
- What comes next is the broker asking the tenant to define their space requirements including a search radius, address financial considerations, develop direction for the deal and set a timeline on how long this process should take and what all needs to be done to meet that timeline.
- Once these questions have been answered, the broker normally asks the tenant to examine and identify their companies short and long term business goals. This is important because it helps the broker know whether or not to include additional square feet in their search to factor in expansion possibilities.
- Once this preliminary information has been discussed the broker can start to survey the market. This includes matching availabilities that meet the client’s requirements, inspecting those properties and having the tenant select the best alternatives so that the broker can begin discussions with landlords.
- Following surveying the market the next step is qualifying alternatives. This involves touring properties that have met the tenants requirements, investigating building infrastructures and ownership so that the client can get an idea of what spaces they like and so that the broker can prepare and present their recommendations to the client.
- Once the client has developed a “short list” of properties that they are most interested in, the broker will send out RFPs to candidate landlords so that they can get an idea of how much each property will cost and what the deal terms are likely to be.
- Upon doing this, the broker will analyze lease proposals and review with the clients attorney to ultimately figure out the best property for the client. Once a due diligent period has been completed upon the property which the client is most interested, it is time to finalize negotiations and execute a lease.
- Once all of this is completed the broker still provides ongoing services to their client. This includes a lease abstract and following up with their client on annual operating reviews and feedback to make sure that the client is still happy with their space.
Once these steps are finished, the transaction is completed.
Constructing a commercial real estate transaction can be overwhelming at times, but with the right guide it’s a simple step-by-step process. We at Commercial Oklahoma are here to make your first commercial real estate purchase go smoothly. We have the resources and knowledge to create the best buying or selling experience possible. Contact us today if you’re ready to have the ultimate advantage in the commercial real estate market.