Commercial Real Estate News / Marketing / What NOT to Look for in Commercial Property Agents

What NOT to Look for in Commercial Property Agents

Published: 07-03-23 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.

Commercial real estate agents can provide valuable insight, experience, skillsets, and connections to your commercial real estate journey, but one thing’s for sure: Not all commercial real estate agents are made equal. In fact, some real estate agents might even hurt your investing efforts.

If you’re considering hiring a commercial real estate agent, here’s a list of things you should NOT look for and, instead, avoid.

#1 – They Have Little Commercial Real Estate Experience

Lots of people can pass a course, get a license, and call themselves an agent. However, the real mark of a professional is their previous experience and track record. For instance, an agent might have significant experience selling single-family residential properties but relatively little experience selling commercial properties.

Be sure to ask about their specific real estate niche. You don’t want to work with someone who primarily deals with office space when you want to buy and sell warehouses and industrial space. You need someone with experience dealing with your preferred type of commercial real estate.

#2 – They Can’t Give You Explicit Numbers or Figures

It’s easy to give vague accomplishments like “several years of experience” or “worked with a wide range of clients.” When it comes to commercial real estate, what matters is hard numbers. Your agent should be able to give you data regarding their previous work, including things like total transaction amounts, commission rates, and average time under contract.

If a commercial real estate agent can’t provide numbers, it means they don’t exist, or they’re disorganized and don’t have them ready at hand. Either way, you should consider a lack of data and figures as a large red flag.

#3 – They Don’t Work in Your Geographic Area

Property markets around the country vary significantly in terms of average prices, building style, and local regulations. Investors need to work with a real estate agent or broker with experience in theri specific geographic location.

For instance, you wouldn’t want to hire a California-based agent to buy or sell properties in Texas. Each market is different and has unique features that experienced agents should know.

#4 – They Can’t Provide Decent References

Any commercial real estate agent worth their salt will be able to produce several high-quality references of previous and current clients. Experienced agents build numerous professional relationships over their careers, so a lack of professional connections is either a sign of inexperience or of a poor agent.

References will likely be from previous clients or brokerages the agent has worked for. Don’t just take their word on it — actually call the references and follow up. You can ask questions about past performance and transaction amounts to get a sense of their abilities.

You can also look up third-party reviews on websites like Yelp. Keep in mind that having a handful of negative reviews is normal as it is impossible to please everyone. As long as 75% or more of the reviews are positive, that’s a good sign.

#5 – They Don’t Do Marketing

If you’re selling property or looking for tenants, a real estate agent that isn’t keen on marketing won’t work out. Agents need to have a marketing plan for how they list properties and find/vet potential buyers/renters.

Competent marketing can mean the difference between selling or leasing a property quickly and having it on the market for several weeks or even months.

#6 – They’re Not CCIM Certified

The best investors have certification from the Certified Commercial Investment Member (CCIM) Institute. An investor that has their CCIM designation must complete a rigorous training course and demonstrate past successes in the commercial real estate industry.

According to current CCIM standards, qualifying applications must have a portfolio containing:

At least 20 qualifying activities in total;
At least 10 qualifying activities totaling $10 million+; and
At least 3 qualifying activities totaling $30 million+.

Potential CCIM designees must also pass a comprehensive written exam demonstrating a high degree of real estate competency.

CCIM designation is not necessary to be a commercial real estate agent and many excellent agents don’t have CCIM status. However, those that have CCIM designation are almost guaranteed to have a superior level of knowledge and experience.

#7 – They Don’t Give Much Advice

One of the best parts of hiring an agent is you get access to their expertise and advice. The best agents are ready and willing to give you their professional take on the situation at hand.

If your agent doesn’t give you much advice about current transactions, odds are they lack the requisite experience or they are not a very helpful agent. You need an agent that can demonstrate leadership and take the initiative.

#8 – They Don’t Make You a Priority

Your agent doesn’t have to be your best friend or even have a personal relationship with you, but you should be a professional priority to them. They should answer your emails and calls promptly and come to meetings with useful information to share.

Their conduct should demonstrate they understand your unique investment needs. If your agent doesn’t treat you like a priority, you should look elsewhere.