Some business owners assume that contacting multiple commercial real estate brokers is better than seeking the services of one agent, thinking that this increases the number of properties they visit. While this makes sense in some ways, it is often not the case, especially in Manhattan. The use of a single property database by commercial real estate brokers in NYC can result in multiple brokers showing the same space to prospective tenants.
Commercial vs. Residential Real Estate
The online database for property listings is exclusively available to professionals in the commercial real estate brokerage community. This listing service displays at least 99 percent of New York City commercial listings. Since commercial real estate firms usually do not have proprietary listings, all listing information is generally from a single source. Unlike the residential real estate market, commercial brokers use a centralized database for their listings instead of separate databases.
Why Multiple Brokers Can Complicate a Search
Multiple brokers showing the same space to one tenant can lead to commission disputes and ignored offers. In New York City’s tight real estate market, this happens frequently due to the limited availability of properties that match a tenant’s requirements.
Save Time and Money with One Broker
By working exclusively with a single licensed broker, prospective commercial tenants can prevent overlap and achieve greater productivity. This frees them from the additional time commitments that come with working with multiple brokers. Tenants should make themselves available for property tours so that both sides get a better understanding of the space requirements. Once a suitable space is identified, the broker will work with the tenant to draft an offer for the landlord.
After showing a prospective tenant available spaces, a broker will refine their search to find properties that better meet the tenant’s criteria. The broker will work closely with the tenant to finalize lease terms and continue their search for listings until the lease is executed.
Working Productively with Your Broker
Achieving a good working relationship with one broker can save valuable time for business owners looking for commercial real estate. The partnership helps streamline the search process and increases the likelihood that landlords will take their offers seriously. The fewer people in the mix, the more attention the landlord will give to a tenant.
Larger companies in NYC usually hire a brokerage firm that focuses on tenant representation. The firm then represents the client beginning with the property search and concluding with the leasing or purchasing negotiation process. Formalizing this process involves the tenant and brokerage firm signing an exclusive agency agreement. The duration of the agreement is usually between six months and a year. The firm is obligated to find a suitable space and negotiate favorable lease or business terms. In return, the client agrees to work solely with the firm for the duration of the agreement.
For a more in depth explanation of exclusive agency agreements and property searches, contact Metro Manhattan Office Space Principal Broker Alan Rosinsky at 212-444-2241.