Posted by garrett 07.02.2008 04:26 PM
What to Consider When Hiring a Broker
1. How active is the broker in the marketplace?
If the broker is active in San Jose, but has never worked in Oakland, where you're looking for office space, it could be a mistake to hire him/her. If they can prove to you that they have the ability to find the tough to find spaces and get information on the most recent transactions. If they can pass both of these hurdles and seem qualified, an out-of-town broker can provide the right level of service. If not, ask them for a referral to a local broker.
2. How long has your broker been in the biz?
Less experienced brokers may work hard but may expose you to common mistakes. Industry veterans can quickly make you aware of the pitfalls and help you avoid them. After about three years in the business, a broker is usually seasoned enough to have learned the tricks of the trade.
3. Check out references
Ask to speak to recent clients who can vouch for their diligence and honesty throughout the process. Ask about their negotiating skills and time spent on the process.
4. Are you looking for a Specialist?
Many brokers specialize in types of firms or industries. If you can find the broker who specializes in your industry (biotech, retail, restaurants, etc), you may get a leg up in the negotiation.
5. Conflicts of interest
Some brokers might work for many landlords throughout the city. If they do, at times their fiduciary duty is challenged when they represent both parties. Most brokers are ethical and this would not create a bad situation, but exceptions do exist.