Buy A Commercial Property

Trust what Abraham Lincoln said:

“He [she] who represents himself has a fool for a client.”

The listing broker of a property works for* the seller, not for the buyer.  This means that the listing broker’s fiduciary responsibility is to get the seller the best deal possible, regardless of who buys it. 

The fiduciary responsibility of a broker who represents a buyer on an exclusive basis is the opposite of that of the seller’s broker.  We represent buyers of commercial property on an exclusive basis and help clients navigate through the purchase process, from initial needs assessment to property identification, negotiation, due diligence, and through closing.  What this means to our exclusive buyer clients is that they are  represented by experienced brokers who know the market and know how to properly underwrite the property to objectively help you negotiate the best price and terms on a commercial property for the buyer.  This results in the buyer resting assured that they are not overpaying for a property and that each part of the negotiation and due diligence process is handled properly. 

Things to consider when acquiring a commercial asset:

• For whom is the listing broker working?  (hint: the listing broker’s fiduciary responsibility is to the seller)
• For whom is the buyer’s broker working? (hint: when in an exclusive representation, the buyer.)
• Needs assessment. What do I need? Why?
• What asset type is best for me? (multifamily, industrial, retail, net lease, office, owner-user land for development, etc.)
• Do I want stabilized asset or a value-add asset?
• What documents do I need?
• Financing options.
• Do I need to hire a property manager or will I manage myself?
• How do I know I am buying the right property and at the right price?
• What due diligence will I need to do?
• How far will I go before the investment stops making sense?
• What is the right price for this asset?
• Do I need a phase I or phase II environmental study?
• Do I need a feasibility study?
• Who do I know who has all the necessary contacts such as engineers, architects, general contractors, property managers, CPAs, attorneys, title companies.
• Getting from initial offer to closing the deal.
• Why is it better to work with a broker who only deals with exclusive representation (hint, this broker will be working exclusively for you, not for everyone)?