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What Should You Look for in a Real Estate Agent?

Published: 06-08-23 Category: Marketing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Two real estate agents sitting down and talking.

If you’re trying to get started with commercial real estate investing, one of the first places to start is finding a reliable commercial real estate agent. An agent can assist you with the complexities of finding, buying, or selling commercial real estate, freeing up resources so you can focus on making good investments.

Of course, not all real estate agents are made equal. With that in mind, let’s take a look at some of the qualities that make a good real estate agent, starting with their area of expertise.

#1 – Area of Expertise

What Should You Look for in a Real Estate Agent?

Commercial real estate is a vast and complex field that includes a diverse range of properties, such as offices, apartments, industrial facilities, warehouses, and much more. As such, you need a commercial real estate agent that specializes in the specific type of transactions you’re looking to carry out.

For example, if you want to lease industrial space to companies for manufacturing, a commercial real estate agent that primarily deals with office or multifamily real estate would not be a good fit.

#2 – Level of Experience

Experience can be a bit of a misleading term among real estate agents: An agent might have 20 years of “experience” with commercial real estate, but how much experience do they have doing what you want to do? Similarly, a firm with “over 50 years of experience” doesn’t mean each agent has that many years under their belt.

Commercial real estate has a relatively low bar to entry, so almost anyone can call themselves an agent. That’s why it helps to look at the agent’s educational credentials and hard data about their past work. Qualified agents should be able to show you specific numbers relating to past transactions they brokered, including sales prices and lease amounts.

#3 – Geographic Location

Just like how different commercial properties require different expertise, your agent should also have experience dealing with commercial real estate in your specific geographic location. Different real estate markets may have different rules and regulations for buying, selling, and leasing commercial real estate.

For example, if you live in San Francisco and want to buy a commercial property in Seattle, you need an agent that specifically has experience working in Seattle’s real estate markets.

#4 – Conflicts of Interest

Whether you work with a single agent or a team of agents in a brokerage, it’s important to inquire about potential conflicts of interest. For example, a brokerage might also be representing landowners and even own competing properties. Additionally, an agent might be representing other clients interested in the same properties as you. How can they serve your needs if they promise the same to others?

All of this is to say that trust is important for the relationship between client and agent. Can you trust the agent to put your interest ahead of their own? It can be hard to gauge trustworthiness initially, but testimonials and reviews from past clients can help you make a decision.

#5 – Referrals and Connections

Commercial real estate agents can’t do their jobs alone and rely on networks of contractors, architects, attorneys, and more. Your commercial real estate agent should be able to demonstrate they have a network of professionals and industry veterans they work with on a regular basis.

For example, many agents rely on their professional contacts to learn about real estate deals before they hit public listings. An agent with a large network is able to find better properties before others, maximizing your chances of getting the best deal. Alternatively, a tenant agent with connections to developers might be able to negotiate a better lease.

#6 – Level of Involvement in Transactions

Some real estate agents take a very active role in facilitating commercial real estate transactions, but some offer a more hands-off approach that lets the buyer/owner take the lead.

It’s crucial to find an agent that can accommodate your preferred style. If you want to take a more passive approach, you can find an agent that will handle things like listing, marketing, and negotiating with buyers/tenants.

#7 – Marketing Expertise

If you’re trying to sell or lease commercial real estate you own, you need an agent who will take a proactive approach in finding buyers and tenants. Marketing a commercial space requires much more than just making a listing. An experienced agent should utilize social media and other platforms that maximize their reach.

#8 – Questions to Ask a Commercial Real Estate Agent

When looking for a commercial real estate agent, it can help to have a checklist of specific questions to ask and concerns to address. These questions should give you a good idea of a commercial real estate agent’s qualifications, experience, and capabilities.

What kind of property do you specialize in? (i.e., office space, multifamily, industrial, etc.)
Do you have a portfolio with a record of previous commercial property transactions and their amounts?
What are the typical price range and square footage of properties you manage?
What kind of clients do you typically work with? (i.e., tenants, buyers, landlords, etc.)
On average, how long does it take you to sell/lease one of your client’s properties?
What sources do you rely on to identify off-market properties and opportunities?
What are some examples of challenging transactions that you have managed?
What are your views about the current state of the real estate market and the risks of commercial real estate investing?
What does your advertising and marketing process for listing properties look like?

Ultimately, the important thing is to find a real estate agent that has a good grasp of your needs and wants as an investor. Just like investing in commercial real estate, finding a suitable commercial real estate agent requires doing your research and due diligence.

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