Finding the Right Commercial Real Estate Can Make or Break Your Dream

Form a Life-Long Relationship With an Exclusive Tenant Client Advisor and You Will Have an Edge.

By Steven Ladin
Special to New Business Minnesota

Every day in the State of Minnesota a multitude of people get laid off, become tired of working for someone else, or have a great new idea. In fact, there are on average 44,000 people every year, year after year, who start a business in Minnesota.
Since you are one of those 44,000 with a dream of your own, you have many decisions to make when setting up your office. As a commercial real estate broker, every day I work with businesses – new and old – that are looking for the right property, in the right location, at the right price.

The good news is that the right property – one that fits your needs and budget – is out there. The bad news is that finding it on your own is extremely difficult and time consuming.

The key to securing the best deal is to work with someone who knows the market inside and out, and is cognizant of special situations, emerging commercial real estate trends and the range of deals that are being done. Also, just as important, working with someone who looks out for you and your business needs. That person is an Exclusive Tenant Client Advisor. If you are looking for property to lease or buy for an immediate need or just planning your budget for a future move, I highly recommend you consider using one.

The traditional way to find commercial property on your own is to drive around the area where you’d like your business to call home; spot as many “For Lease” or “For Sale” signs as you can and write down the phone numbers. This is pretty scattershot.
When you start calling off your list, you most likely will speak to the building owner or the owner’s representative. Their role is to represent their property. They usually are not willing to tell you that a building nearby actually might be a better fit.
Just remember whose interest they are looking out for. They will work very hard to get you into the buildings they represent. There isn’t any incentive for them to do price comparisons for you or to recommend options they don’t represent.
You are on your own.

Another traditional route is to use a commercial brokerage firm that represents multiple properties and multiple owners. They bring tenants or buyers to the table and negotiate a transaction in the best interest of the owner.

Most brokers negotiate from both sides of the table, claiming to impartially represent both an owner and a tenant or buyer in the same transaction. The pressure of retaining major listing arrangements for local and national accounts often influences the outcome of transactions within a firm.
Again, you are on your own.

I don’t believe it’s possible to negotiate from both sides of the table. I believe you are best served by exclusive representation – someone who represents you.
Finding an Exclusive Tenant Client Advisor can save you both time and money. They know business and commercial real estate and are skilled negotiation specialists.
They will analyze your specific business needs and occupancy requirements, identify and evaluate the appropriate options and facilitate your lease or purchase negotiations for you. Just like a residential real estate transaction, typically there is not any cost to the tenant for this representation.

Even when you do find the right space on your own or with a broker, you will wonder if you have negotiated the right price. An Exclusive Tenant Client Advisor will research properties, arrange showings and assure that you lease or buy your property at the best rate.

Research has shown that tenants who utilize an Exclusive Tenant Client Advisor can save as much as 10 percent to 40 percent on their lease or purchased transactions.
The relationship you form with your Exclusive Tenant Client Advisor will also assist you in other ways in setting up your office. They can offer professional referrals for phone service, IT services, furniture, office supplies, accounting, legal services, insurance, and much more. A good Exclusive Tenant Client Advisor has already built strong relationships with many value-added service providers they know and trust.

You’ve probably heard this a lot since you started your business: work with professionals and have a team of trusted advisors. The reason people tell you this, is because it’s true. It’s not any different when it comes to leasing or buying office space.

Make sure you have someone in your corner…office.

Steven Ladin, CEO and owner of Ladin Ventures, LLC, has extensive real estate experience in the Twin Cities market and has a staff of Exclusive Tenant and Buyer Client Advisors. Previously, Ladin was Managing Partner with Miller Management Company. Ladin is a member of the real estate industry’s top professional associations and organizations including the  National Association of Realtors Commercial Alliance, Minnesota Association of Realtors, Minneapolis Area Association of Realtors and the Minnesota Commercial Association of Realtors. He can be reached at (763)331-3010, sladin@ladinventures.com or on Twitter – @LadinVentures. www.LadinVentures.com.