Broker: Jeffrey Lowden, MBA
3500 Lakeside Court #211
Reno, NV 89509
Sky West Brokerage, Inc. – WHY YOU NEED TO BE EXCLUSIVELY REPRESENTED
Several prospects that need help often need help understanding why they need to sign an EXCLUSIVE AGREEMENT with a broker leasing or selling a building. This outline helps to explain why.
Like most professions, we are a service-oriented business. As most real estate is commission only the ‘mentality’ for most people is I will get three brokers working for me and ‘may the best man win’. This is absolutely the worst idea that one could have when looking to lease, buy, sell in our industry.
WHY many people ask. Here’s why:
1. Align yourself with someone who CARES. You will not get anyone to work for you that really cares unless they are retained.
a. Think about it. In any profession once someone is retained and they know they have your full attention then you will get the best they can offer. If you are wishy-washy and hope that someone will do something for you for free you are mistaken. As we are on commission only our time is all we have.
2. All Brokers are NOT Equal or Alike – We all have the same access to information in our industry thru MLS, LOOPNET, Costar, etc. We all have the same access to the same information or do we?
a. Our argument is NO. Each property is different, and a marketing plan has to be customized specifically for the client, area, market, etc.
b. We only work on the assignments that we like and have a relationship with the client. Think about it. You have favorites when it comes to the clients you like, that is why they keep coming back to you. Same in the Commercial Real Estate Industry. We try and do a good job for everyone but a ‘shotgun’ approach most often times fails.
3. In our industry if Sky West is not Exclusively Retained we will pass on the assignment. We only have so much time and some many hours in the day to work for so many people. If we have 12 Exclusive listings who are we going to put our time and effort into? Those that have committed to us.
4. Is my Broker worth the big commission he is going to be paid? There is so much that goes on behind the scenes in our business.
a. Aligning with other brokers – There is an overwhelming need in the commercial real estate community today. There is more need then agents or brokers can service. This presents an opportunity for the commercial real estate community as we get to pick and choose what to work on. It also presents an opportunity for many looking for a job to get into this community. The bottom line – If you are an owner and need help you needs to align yourself with experience and someone who is going to ‘carry your torch’. If you don’t have a broker or commercial agent that is going to be detailed, cares, will be accountable to you the owner then you need to keep looking.
b. Experience – Today more than ever you need to align yourself with experience. A National Commercial Real Estate company is not necessarily the right company. Commercial Real Estate is so “LOCAL” in nature that you need to align yourself with doers and the agent that is ‘fresh’ as creative ideas. It is easier today (more than ever) to get free marketing thru Craig’s list, social media, email marketing, etc. These are great, but you also have to have experience, national reach, and commercial real estate tools at your disposal to get to Buyers or those who you need to get to.
c. Name of Company and Broker/Agent in the community – Reputation in our Industry is Big. Align yourself with someone who has an aggressive reputation.
d. Market understanding – Key to leasing or selling is your property is to know the right lease rent or sales price to put your property out. The owner has to work with the Broker to come up with the right plan. It is easy to stick a price or number but if it is too high then you will sit for a long time. If the price is too low then the owner or lessor feels like he is leaving money off the table. So “positioning” key and you have to know the right tools to use to position the property.
Time & effort that goes into a listing – In Closing, I have a story which is current and relevant. Sky West took on a Tenant representation assignment for an up and coming company to find them a location to lease commercial office space. The company owner liked us and signed the Exclusive Listing Agreement without checking with his wife. His wife was upset because she wanted to get three brokers working for her.
Long story short, Sky West was able to get the tenant into a lease for 5 years at a flat rent of $1.00 due to free rent and other concessions. Sky West worked over 8 months:
• Pulling information.
• Reviewing prospecting locations.
• Sharing these locations with the client.
• Driving the client to numerous properties.
• Showing the Client over 15 properties.
• Calling to arrange the showings (which got cancelled 3 times and 20 broker calls had to be rescheduled
The Tenant ended up finding the Location for his business and then said, “Why do I need a broker? I found the property on my own”. WELL, DID YOU? NO !! How much work was done by us for two months to help you arrive at the right property?
Then Sky West had to prepare the LETTER OF INTENT (LOI) – which took 5 versions to get both parties to sign a non-binding contract.
The Sky West had to prepare a 35-page lease. Again 7 to 8 revisions back and forth until both parties were satisfied.
My point in telling this long story is after 9 months the deal got done. The $5,000 commission paid to SKY WEST seemed like a lot but look back at the work that was done. When you calculate it out the hourly was probably less than minimum wage.
We in the Commercial Real Estate Industry do earn our money and work hard for our client.
We hope this helps to explain the efforts that are made, money that is spent by us to assist our client and the time it takes to stay involved with a Client.
If you are looking to buy, sell or Lease Commercial Real Estate please give Sky West Real Estate Services a call. We have offices in RENO, Los Angeles & Boise strategically located to assist you with any of your commercial real estate needs.
Jeffrey Lowden, President, MBA, Broker Jeff@SkyWestServices.com 1325 Airmotive Way, Suite 200 RENO, NV 89502 775.827.6700 Office 775.827.6702 FAX 775.315.4314 Mobile