Contributing Author: Cory Tyksinski
Most people have heard or even used the expression “Stay in Your Lane,” and almost everyone would apply it to when they are behind the wheel of an automobile. But it can have significant meaning in the world of Commercial Real Estate (CRE). We live in an age of technology where the internet and social media have increased the amount of information available and the speed at which someone can obtain information about almost anything, including commercial properties.
This access has certainly benefitted the general public as would-be buyers and tenants can peruse the various websites anonymously to search for the right property that meets their needs, and only after identifying such property, will they engage the assistance of an owner or listing broker. However, this accessibility to information has also “allowed” or even encouraged real estate brokers to venture into areas where they may not have comprehensive and thorough knowledge.
Not that long-ago brokers were depended upon to provide this valuable and “proprietary” information about their listings. Now with this increased exposure the real estate broker’s true value should come from their extensive knowledge about specific commercial properties as well as their extensive experience dealing with these types of properties. So, accessibility to information can be useful, but it can also lead to potential pitfalls for some brokers and members of the buying public.
Simply because information exists and can be readily accessed by anyone with a laptop or smart phone, doesn’t mean that those individuals are qualified to handle the potential intricacies that are associated with most commercial transactions.
Less qualified brokers and buyers who are interested in learning about the numerous steps and potential pitfalls that can arise during a commercial transaction should seek the assistance of a licensed commercial Realtor that is not only well-versed in commercial real estate transactions but can demonstrate that they possess the knowledge and experience with the specific commercial property type as well.
This expert should be able to advise the buyer or tenant of the many steps involved, manage expectations about the timing and velocity of a particular type of transaction and ultimately save everyone time, money and frustration.
The licensing process in New York State is not very arduous, not very difficult to complete or very costly. The resulting licensure allows individuals to practice any type of real estate transaction, just about anywhere in the state. It is not surprising in our robust and active real estate climate to encounter a professional who is not well-versed in commercial transactions looking to become involved in the so-called action. The transaction values tend to be higher than most residential deals and the resulting fees can appear to be too good to pass up.
What most people don’t see is that a large portion of the commercial deals that do occur may have taken 6 – 12 months of time of constant oversight and extensive due diligence. In some cases, much, much longer. Deals in the commercial world tend to “die” 4-5 times before they are completed and often require numerous financial, environmental, and approval steps not required in traditional residential deals.
Someone without this direct knowledge or expert tutelage may be drawn to the opportunity to be involved in a commercial transaction, forgetting what their core competency truly is and inadvertently mislead or misrepresent a tenant or buyer. While that may not be their intention, this can and does occur. And the unfortunate result is it can be costly for all parties involved, financially and in loss of valuable time.
CRE brokers should always conduct a thorough needs analysis with their potential clients knowing as much as possible about their wants, needs, financial capabilities and decision-making process prior to ever inquiring about a particular property on their behalf. This up-front due diligence, known as pre-qualifying a client, ensures that they are dealing with a capable buyer or tenant which allows them to invest their time and experience with confidence.
The expert knowledge and experience in commercial transactions that the real estate experts at NAI Platform possess can often be the competitive edge that enables their clients to successfully locate that diamond property or space, navigating the potential pitfalls, while completing the process more quickly, helping their clients save valuable time and money.
Our brokers at NAI Platform possess extensive knowledge and experience of the industry’s intricate nuances, with a singular focus of working diligently to help our clients meet and surpass their goals.
For more information and expert guidance on your commercial real estate needs, please give us a call at NAI Platform or visit our website at www.naiplatform.com.
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