Tips on finding a commercial agent
[deleted]
[{"id": "elmjfoq", "text": "You need to own the building before you can hire them. Generally I would use brokers during the DD process to vet out the leasing plan and through those conversations you get a good feel for who would be interested in leasing the property and who from that pool you think would do a good job for you. \n\nThat being said, pro-tip - retail leasing is a BRUTAL SLOG and Main Street suburban retail is a KNIFE FIGHT. You will be dealing with zero credit tenants who are asking you to take a flier on their restaurant/nail salon / dildo shop / half baked idea and you\u2019re effectively an investor in their business because you need to put up the TI bucks and hope they survive the term out because otherwise you\u2019ve just built out space that isn\u2019t really reusable unless the next tenant to come around is also a store selling firearms dildos and bongs. Not only are you taking a flier on Joe Blows business but you also need to compete against other unsophisticated owners to win the lease (and FYI Main Street retail leasing is slow as shit you\u2019re waiting on Joe Blow to have a business idea) so you end up competing with other people to win bad leases. \n\nIf I were you and trying to learn real estate investing using my own money I\u2019d start with just a simple 5-6 unit apartment building - leasing is easy (it\u2019s just a simple form lease create by state real estate bird), capex isn\u2019t as complicated, and cash flows are more predictable. Making your first investment in suburban retail is a great way to lose your money. \n\nMy $0.02.", "replies": [], "depth": 1}, {"id": "elmlygo", "text": "Find an area that you generally want to buy in and drive around. Look for agents who list multiple properties in the area. They have the knowledge of the market and will most likely know what the competition in the area is being marketed for. They can help you evaluate pricing/future opportunities/etc. \n\nExclusive representation agreements are usually for more corporate tenants that are buying/leasing multiple transactions. If an agent finds you a deal worth offering on they\u2019ll include their fee in the contract.", "replies": [], "depth": 1}]