Wednesday, March 7, 2012, 2:55 PM

Checklist for Selecting the Right Broker – Part One

By: Pamela V. Rothenberg, Esq.
A very good broker is someone who not only facilitates a high growth company’s lease or real estate acquisition, but who also remains actively engaged in all aspects of a company’s real estate needs. A dedicated broker will act as a “watchdog” to ensure that your landlord is fulfilling its obligations under your lease. He or she will continually monitor market conditions and alert you about any factors that could impact or provide opportunities for your company’s real estate needs or plans. As promised in my last post, I am sharing, in a 2 part series, a checklist of 9 things to consider as you select a new broker or even evaluate your existing broker. Here are the first 4 items on my checklist:

1. Connection with your Company’s Objectives: It is important that your broker understand your company’s business drivers/motivators and maintain a focus on these motivators throughout the process of a real estate transaction. You should try to gain a clear understanding of how the broker generally views transactions and how he or she would typically approach your company’s proposed transaction. Does the broker have a clear “end-user” perspective and an organized thought process? Will he or she process the numerous issues that will be associated with your company’s transaction in a manner that works in conjunction with the overall goals and objectives of the company? To help evaluate these issues, ask the broker these questions:
--What transactions have you completed that are similar to the transaction we intend to pursue?
--Can you provide a detailed account of the process that you engaged in with these other clients to successfully accomplish their leasing or purchase transactions?
--What obstacles/tough issues did you face and how did you prevail?
--Given the basic plans for our transaction, how would you recommend that we move forward?
2. Team Members: Ask the broker to identify the specific team members that will be involved with the company’s matters and to inform you about the qualifications of each team member relative to the company’s transaction. To help evaluate these issues, ask the broker these questions:
--What is every team member’s role in the transaction?
--Who will be my primary contact(s)?
--Who will be involved on a day-to-day basis and play an active role with my transaction.
--Does the team provide a “deep bench” with multiple skill sets and talents?
3. Geography: Geography is a very important consideration when evaluating a broker. As your company’s business environment becomes increasingly national or even global, it is imperative that your broker understand this national/global approach. To help evaluate these issues, ask these questions:
--To gain a clear understanding about the prospective broker’s primary jurisdiction, ask where the brokerage company does most of its business. Are the brokers national, regional or local players?
--If your transaction is national in scope (i.e., you are “relocating” your company from one jurisdiction to another), is the brokerage company geographically positioned to effectively service your deal and your needs?
--Does the broker have knowledge about what other companies comparable to yours are doing in other markets?
--Has the broker evaluated the potential for reduced real estate costs to your company across your real estate portfolio? For example, can the broker tell you where there are less expensive real estate markets to which you should consider relocating certain of your company’s departments?
4. Experience and Expertise: Try to determine the number and type of transactions completed by the broker and then evaluate whether they are “on point” for the deal you will be pursuing. To help evaluate these issues, ask these questions:
--What has this specific brokerage team done in the past as a team?
--Demonstrate how your team thinks creatively and has used innovative techniques to solve difficult problems.
--What types of businesses has the broker and his/her company represented that are similar to your business? Does he or she understand your industry and, in particular, how your industry looks at real estate transactions. Is there an industry group within the broker’s organization that benchmarks your industry?

I will share the remaining checklist items in my next post. I look forward to hearing about your additions to my checklist.

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1 Comments:

Blogger Unknown said...

Congratulations Admin! Thank you so much for taking the time to share this exciting information.
Offices to Rent

January 25, 2013 at 11:44 AM  

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