Choosing the wrong real estate
agent/firm can result in mistakes that
can cost your business tens of thousands of dollars, says R.M. Jack Jones III,
Vice President and Director of Management Services for the Dallas office of
Grubb & Ellis Company.
“Common errors that real estate consultants can make include not clarifying what
you’re looking for, not understanding your
position and what you’re trying to achieve,
and coming back to you with bad information, especially at the outset of the relationship,” Jones says.
Smart Business talked to Jones about
the process of nailing down a real estate
consultant who will maximize your investment.
What are some of the services to look for?
Are you interested in expanding or contracting in existing space? Taking over a
smaller or larger building or perhaps
attracting investors to your building?
Which real estate firms can actually help
you do that, and which ones have the
research departments and market information to put you in the best possible position?
Your cause can be better served if the
firm you’ve chosen is broad-based throughout several real estate disciplines so that
various personnel can intelligently discuss
all sides of the real estate equation without
necessarily being in conflict with one
another.
The larger firms are pretty broad-spectrum, but some boutique firms specialize in
one segment of real estate in a particular
market. If the agent you choose is providing good service, he or she should not only
reach out to colleagues, but possibly a boutique firm.
Once you’ve chosen the company, how do
you select the right individual agent or consultant?
Look for somebody who can listen to you
and educate you. Better firms can pair you
with the right person to suit your particular
business needs. The best position you can take is to interview or get to know more
than one agent.
Before making your selection, you must
look beyond the interpersonal factors.
Look for a collaborator. The consultant
must be able to reach out to specialized
colleagues if a need exists to invest or
explore other disciplines, and then be able
to keep the communication lines open and
the process running smoothly.
Don’t be reluctant to spend the appropriate time to make your choice. That decision is an investment, and it will save time
and possibly tens of thousands of dollars
down the road.
Ultimately, you should get to know your
consultant, get along well, and trust him or
her. It also helps to share the same business
philosophies and understand common goals.
What does the agent or consultant need to
know?
Your real estate decisions have a huge
economic impact on your company, no
matter what kind of move you’re contemplating. It’s the consultant’s job to solidify
the relationship.
The most critical question that he or she
needs you to answer is: What are you trying
to achieve in making your real estate decisions? Are you simply renewing? Are you
looking to expand or contract your business? What type of building are you looking for? What type of facility? Is a lease the
best scenario, or should you consider owning a building?
The consultant is not looking for corporate secrets or proprietary business information. He or she should know how to get
the needed information without looking
into your mainline business decisions.
What about market-specific information and
trends?
Having the correct market information is
critical. In some respects, you may be
receiving and reading conflicting information about the market right now. For
instance, many reports say that the Dallas-Fort Worth Metroplex is booming and
growing. But the real market trends may
depend on factors like leasing absorption
in a micromarket and whether the monetary values of buildings are trending up or
down.
You have to understand that, yes, some of
your hunches are probably true — but the
real market might be the opposite of what
you’re seeing or hearing in the news or any
feeling you might have. Having somebody
help you understand the market is invaluable.
Should a company owner or CEO seek a new
agent or real estate company every time he
or she needs to change locations?
Everyone aspires to long-term relationships. If the real estate firm has been looking out for your best interests, you will be
enticed to use the agent over and over. If
your company’s situation changes, you
may want to start the interviewing process
again — but if your consultant is doing the
job, he or she wouldn’t lose out. <<
R.M. JACK JONES III, CPM, is Vice President and Director of Management Services for the Dallas office of Grubb & Ellis Company.
Reach him at (972) 450-3274 or [email protected].