Investing in retail space can be challenging. Many shop owners opt to rent a retail space rather than purchase one to help keep overhead expenses low and maintain flexibility when it comes to growth.
Commercial real estate rentals can be difficult to come by. Having a broker to assist in the process can ensure that a retail business finds commercial space that will meet its needs over time.
There are many different kinds of commercial real estate brokering services who can complete commercial deals. Understanding the different types of brokers will help you better secure commercial space for your company in the future.
1. Brokers Who Work For Landlords
When a commercial real estate owner wants to rent out space in his or her building, a broker will usually be contacted. Brokers who work exclusively for tenants take listings on commission. The broker is then responsible for finding a suitable tenant to fill each available space.
Landlords put a lot of trust into these types of real estate brokers. You can work with a landlord's broker to find a variety of options when looking for commercial space for your company, but keep in mind that these brokers are duty bound to work out a lease that is in the landlord's favor.
2. Brokers Who Work For Tenants
Another type of commercial real estate broker you can utilize when searching for new retail space is a broker that partners exclusively with tenants. These brokers do not take properties from landlords on commission; they get paid by tenants when a suitable property is found and a lease is signed.
Tenants' brokers have the best interest of the tenant in mind, which can make them a valuable ally when it comes to setting up shop in a suitable commercial rental space.
3. Dual Brokers
If you are unable to locate a commercial real estate broker that specializes in representing tenants only, your next best option is to find a broker that will take on both tenants and landlords as clients. These brokers will have the benefit of knowing which commercial properties are available in your price range.
The only pitfall you need to be aware of when using a dual broker is the potential conflict of interest that may arise should you become interested in a property whose landlord is also represented by your broker's company.
These situations can put your broker in a compromising position and result in a lease that isn't as favorable to either you or the landlord as it could be.