Looking for some insight before entering a broker agreement in Chicago
I own a small furniture manufacturing company in Chicago and looking to scale up to a new larger location. We are currently working in a much smaller Live/Work space. My lease was less formal than the traditional commercial lease agreement and worked with the landlord personally. 

I reached out to a brokerage company to help me find a more legitimate manufacturing facility. I have a small list needs (4000-7000 sq ft, sprinklers, small office, overhead door, 400amp service) for the next place that will may take some time to find in Chicago. The broker seemed very knowledgable and the firm seems like they know what their doing. 

They sent over an Exclusive Representation Agreement that says we have to use them for 6 months of the search for a place. That seems very long to me but I've never done this before so I'm asking... Is that standard? I trust them but also I've trusted people in past and have been burned. 

Any insight would be great! 

Thanks
[{"id": "gx5w8lm", "text": "You don't need to sign an exclusive if you don't want to. As a tenant rep I like to ask for exclusives because it guarantees I don't lose the business to a competitor but from your perspective it behooves you to keep options open. No single broker can see the entire scope of the market. \n\nSource: 10 years tenant rep broker at big 3 firms", "replies": [], "depth": 1}, {"id": "gx5wfos", "text": "That's pretty standard. Essentially its giving them the assurance that its worth spending their time on. Brokers hate spending a lot of time on deals only for someone else to get the commission or have the owner do a deal direct after they've put in a lot of time and effort.", "replies": [], "depth": 1}, {"id": "gx5wppe", "text": "It\u2019s fairly standard for bigger firms, otherwise they have no protection in bringing you deals. Basically they will go out and market you to other brokers and landlords and with out a written agreement that you will use them, landlords/brokers may see an opportunity to go around them and not pay them for the work they did in getting your name out there. The only downside to you is that they may not be worth a shit or that there workload is so big that they don\u2019t really have the time so they relegate you to one of the kids in the office.", "replies": [], "depth": 1}, {"id": "gx5zwdq", "text": "I only do 6 months if I am sure I can get a deal done, otherwise my minimum is a year. The commercial world simply moves slower in general, I find 1 season cycle is enough to make an impact. Alternatively you can ask for an exclusive agency agreement which allows you more flexibility.", "replies": [], "depth": 1}, {"id": "gx6ldby", "text": "Has the broker shown value to this point despite being early in the process? If you are confident in him/her and the shop, I'd strongly consider signing. \n\nAs others have mentioned, having an exclusive provides an assurance to the broker that their time will not be wasted (not a salaried job). This is a benefit to you because you will have a considerable amount of their focus and they will hustle knowing you're not out in the market with other brokers. \n\nOn the flip side of the coin, if you don't want to sign one, maybe they'll still help you? Worth an ask. Younger brokers will typically take the risk of working without one. That said, you may be forfeiting some experience that could benefit you. \n\nAs is usually the case, everything's negotiable. \n\nMy suggestion would be to propose language that provides you the ability to terminate at any time within those 6 months and sign it. Broker gets their exclusive and if they hustle, no need to worry. If they don't perform to your liking, you can go find another who will. \n\nGood luck!", "replies": [{"id": "gx6xgfa", "text": "Do they actually agree to that? Termination upon notice doesn\u2019t seem like an exclusive to my legal eyes.", "replies": [{"id": "gx72eq3", "text": "It depends. It would be an exclusive in the sense that the tenant wouldn\u2019t actively be working with another broker while engaged with current broker. At the same time, tenant doesn\u2019t lock into working with a potentially subpar tenant rep. \n\nGranted, it would be in good faith that the tenant wouldn\u2019t be shopping around behind broker\u2019s back. \n\nGenuine question for you, are exclusives legally enforceable anyway?", "replies": [{"id": "gx9ffn0", "text": "Could also include protection language (IE options that the broker brings to you while engaged, broker still participates in even after the agreement is terminated)", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gx6sgtq", "text": "Get on IL Dept of Real Estate check out their licensing and credibility.\n\n6 months means you can not go back haggle a deal without their involvement or offer to pay the broker a fee if you chose that place. I also suggest you review commission or whether you need to pay them if the seller will not pay your broker.  You need to also write down when you can let them go if it does not work out.", "replies": [], "depth": 1}, {"id": "gx75z6p", "text": "Standard.", "replies": [], "depth": 1}, {"id": "gx855if", "text": "Sign if you want someone to consult and guide you through the process and if you have confidence they can execute. Real landlords expect to pay commissions anyway so no skin off your back. Don\u2019t sign if you want to just randomly look at spaces with anyone that calls you.", "replies": [], "depth": 1}, {"id": "gx8go7w", "text": "Before you sign that agreement, PM me. I am buying an industrial building and may have a space that works for you. Will cut you a better deal if I don't need to pay brokers.\n\nIt's about 6,000 SF, currently used by a cabinet maker actually. It's run by an old guy and they pay literally nothing for it. He's retiring rather than pay the normal amount of rent I need to cover the upgrades the building requires. Concrete frame loft building right by the L. It's ground floor space so I could pop in an roll up for you.", "replies": [], "depth": 1}, {"id": "gxbx8vt", "text": "I put a minimum of a year on my agreements, so I would say that\u2019s reasonable. I\u2019m not sure about Chicago, but where I am, all the industrial that size has been scooped up. They will also likely have a clause in there stating that if you go off to lease/buy something the broker showed you during the term of the contract, that he would still be entitled to the commission for however long it states. Also fair :)\n\nGood luck and congrats on your growth!", "replies": [], "depth": 1}, {"id": "gxl9vm1", "text": "If you didn't talk about the length beforehand then it might be their \"default.\" You could just ask them, almost everything is negotiable and customizable.\n\nAnd you should talk with them about your plans and goals including your timeline so everyone's on the same page.", "replies": [], "depth": 1}]