Choosing a property for your business is one of the most important decisions you can make, with long-lasting consequences. From location and size to rental rate and details, the right commercial real estate property meets your business needs now while considering scale and planning for the future. On the other hand, selling a commercial property can be complex and time-consuming.
That’s why it’s important to choose the right commercial real estate agent to represent you. While a positive first impression is a great place to start, digging deeper to learn more about each agent can make a significant difference. Whether it’s finding a property or selling commercial property, working with a good agent can help make the process seamless.
To help narrow your search, here are 15 great questions to ask to ensure you select the right partner for your journey.
Interviewing Your Commercial Real Estate Agent
1. What experience and credentials do you have?
Don’t hesitate to ask for past references, experience in their field, and credentials like education, licensing, or other qualifications. Rather than focusing on the years of experience a commercial real estate agent has, it’s best to look at the number of successful deals and commercial property sales they’ve completed.
2. How do you handle conflicts of interest?
In commercial real estate, an agent might represent both the landlord and the tenant, or two buyers interested in the same building. Ask how they disclose these situations and what protocols they have in place to ensure your interests remain the priority.
3. How will you help me find more options?
The best commercial real estate services will help you find options you have yet to consider. It’s your agent’s job to scour the market and expand your idea of suitable commercial space. They should have a finger on the pulse of market trends and possess excellent business acumen.
4. What is your negotiation style?
Every deal requires a different touch—some need an aggressive approach to beat out competition, while others require a collaborative strategy to maintain a good long-term relationship with a landlord. Ensure their style aligns with your business values.
5. How will you help me compare different offers?
A knowledgeable commercial real estate agent can use financial metrics to help you compare the total costs of leasing or purchasing. They can also help you compare conditions/terms, operating costs, and incentives. This process helps you make better and more informed property choices.
6. Can you help me evaluate lease terms or investment projections?
Beyond just finding a space, a high-value agent should be able to sit down with you to break down the fine print. Whether it’s analyzing the Internal Rate of Return (IRR) for an investment or explaining the implications of a triple-net (NNN) lease, your agent should be a financial resource.
7. Can you share specific examples of hurdles you have helped other clients overcome?
Commercial real estate transactions are complex. A true expert understands what types of issues to expect and can answer this question with honesty and integrity. Pay attention to how they approach problems and create solutions.
8. How often will you communicate with me and in what format?
Miscommunication can kill a deal. Establish expectations early: Do you prefer a weekly Friday afternoon phone call, or immediate text updates as soon as a new listing hits the market? Knowing their communication rhythm ensures you never feel left in the dark.
9. How long will the search take?
When business owners aren’t aware of how long it takes to find a suitable space, it can lead to frustration. Your agent can provide you with a realistic timeline of when to expect the first round of tours and the average turnaround time for closing.
10. Do you have experience with businesses that are similar to mine?
If you run a small retail boutique and the agent only has experience with large industrial warehouses, the relationship might not be a good fit. At CMS Real Estate, we’ve worked with clients ranging from start-ups to large corporations.
11. How familiar are you with the local market?
Choosing an agent with a long presence in the local market is valuable. They will be familiar with the history and context of communities and can be transparent about whether the current market is favourable for leasing, selling, or purchasing.
12. What is your strategy for meeting my business needs?
This question gives you insight into whether they have a structured process to minimize problems and set the deal up for success, especially when handling the complexities of selling or specialized renting.
13. What type of commercial space do you specialize in?
If your business has specific requirements, you will benefit from finding an agent specializing in the type of space you’re looking for, whether it’s industrial, office, or retail.
14. How does the listing, contract, and closing process work?
An experienced agent will walk you through the entire process from start to finish. Getting professional insight into these steps is valuable, especially if this is your first sale or leasing experience.
15. What other questions should I be asking?
Finally, you want an agent who will take the time to answer this question and show interest in finding out how to serve you better.
Next Steps: Speak to One of Our Commercial Real Estate Agents
The commercial real estate world can be complicated, and asking the right questions is the first step toward achieving your desired results. At CMS Real Estate, we are a full-service brokerage with over 40 years of experience in the Calgary market. When you’re ready to speak to an expert commercial real estate agent, we’ve got you covered.
Contact CMS Real Estate today, and we would be happy to answer your questions.
Frequently Asked Questions
What does a commercial real estate agent do?
A commercial real estate agent helps clients buy, sell, or lease properties used for business purposes. This includes conducting market research, identifying suitable locations, negotiating lease or sale terms, and providing financial analysis to ensure the deal aligns with the client’s business goals.
How do I choose the right commercial real estate agent?
Look for an agent with a proven track record in your specific industry (e.g., retail, industrial, or office). You should evaluate their local market knowledge, communication style, and their ability to provide data-driven insights rather than just gut feelings.
Should I work with a local commercial real estate agent?
Yes. Local agents have on-the-ground knowledge regarding upcoming developments, zoning changes, and landlord reputations that national databases might miss. Their local network can often grant you access to off-market opportunities.
Do commercial real estate agents help with investment analysis?
Many do, especially those focused on sales and acquisitions. They can help calculate cap rates, cash-on-cash returns, and provide projections on property appreciation to help you determine if an investment is sound.
How long does it take to close a commercial real estate deal?
On average, a commercial deal can take anywhere from 60 days to over six months. The timeline depends on the complexity of the inspections, the speed of financing approvals, and the length of the due diligence period.