Searching Solo: 5 Common Commercial Real Estate Mistakes

An essential component of your commercial property search can be working with a professional commercial real estate broker. From the initial research to the final negotiations, the commercial market can be fraught with uncertainty and complex choices if navigated without the right guidance. A tenant representative can provide you with expert analysis of market conditions, available properties, and deceptive lease agreements, working to get you the best results at the best value. Those who undertake the commercial property search themselves often make a few key errors, like those below, that can be more costly in the long run.

1. Strategic Errors: Does this property have potential for expansion? Is it in a location that will continue to grow and thrive? These considerations should influence commercial real estate decisions but can be often overlooked by those without the knowledge to answer. An experienced commercial real estate broker can help you locate the property that is most advantageous to your short-term goals and long-term success.
2. Lease Mistakes: Most tenants have little experience negotiating and signing a commercial lease agreement. Without knowledge of landlord practices and reasonable requests, tenants can end up signing expensive and restrictive leases. A tenant representative can work with you to identify your needs and wants, negotiate effectively with landlords, and advocate for the most beneficial lease terms. He or she can also perform a lease review to help you better understand the terms of your agreement.
3. Paperwork Oversights: Leasing or purchasing commercial property requires a great deal of the necessary paperwork, some of which may be overlooked or little understood. With the assistance of an expert on the commercial market and legal guidelines, tenants can file the right paperwork more efficiently and move into their new space in less time.
4. Landlord Conflicts: Dealing directly with a landlord can be problematic for tenants, particularly when it comes to lease agreements. Some landlords can be difficult to work with, refusing to negotiate, and tenants do not always have the experience or knowledge to challenge them.
5. Conflicts of Interest: Many commercial real estate firms represent landlords and developers, which means they benefit most when their clients benefit. To avoid a situation in which your interests are subordinate to those of landlords whose business a firm covets, work with a tenant representative. A tenant representative works exclusively with tenants, aligning his or her goals with your own and advocating for your interests over the landlord’s or interested firms’.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.