Commercial real estate brokerage firms have the experience, knowledge and skills to help your company purchase or sell business space at the most competitive price. Commercial real estate brokers are trained and licensed to assist business owners in buying, selling, renting or leasing commercial properties. Commercial brokerage firms assist business owners in purchasing or selling several types of commercial space, including including office buildings, hotels, apartments, retail, hospitality, shopping centers, industrial properties or even land.

Because commercial transactions require special expertise, it benefits your business to hire a commercial real estate finance broker with industry knowledge, experience and professional negotiating skills. Before your hire a real estate brokerage firm, do some research and evaluate the pricing and costs of real estate brokerage firms:

1. How much should your business expect to pay real estate brokerage companies for their services in helping to purchase or sell a commercial property?

2. How much should your business budget for property management fees for real estate broker firms?

3. What additional or hidden fees are involved in commercial real estate brokerage services?

Action Steps
The best contacts and resources to help you get it done

Select real estate brokers with competitive commission fees on commercial sale transactions

Commission fees for commercial real estate brokers are typically based on the size and complexity of the commercial transaction. Commission fees can be a set dollar amount, but they usually are a percentage of the transaction -- most commonly 4-6% of the sale price. Business professionals purchasing commercial property typically pay no commission fees because the brokers' commissions are paid by the seller.

I recommend: Get advice on how to negotiate commission fees as low as 3% of the sale price at Inman News. Learn how commercial real estate commissions are calculated for office space leases at OfficeSpace.com, with examples helpful to your business -- like if you sign a 3-year lease for 2,000 square feet at $20 per SF per year, your commercial real estate broker will make $6,000 at a 5% commission rate.

Choose real estate brokers with negotiable property management fees

Leasing commissions for commercial real estate brokerage firms are generally five or six percent of the lease value, which is calculated as monthly rent plus terms of the lease. However, some property management fees can be as high as ten percent of the gross lease amounts. Leasing commissions are typically negotiable, so work to the get the best deal possible for your business.

I recommend: Purchase reports and articles with valuable information for businesses seeking to lease commercial space at Commercial Leasing Institute. Get tips for negotiating commercial lease options and fees at Crosstown Commercial Properties.

Calculate all hidden fees involved in your commercial real estate brokerage firm transaction

In addition to commissions, there are several associated real estate brokerage firm transaction costs. Expect to pay additional costs for application or due diligence, broker retainers, credit reports, appraisals, lender points and closing costs. Reputable real estate brokers will disclose all upfront costs and closing fees.

I recommend: Get valuable insight into hidden commercial real estate brokerage fees, like credit reports and appraisals that can cost from $2,000 to $5,000, at REIClub.com. Research the costs that should be included in a commercial real estate purchase contract at Lawyers.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to get all real estate brokerage firm fee agreements in writing. Before signing any paperwork, review all contracts with a lawyer who specializes in commercial real estate transactions.

It’s no secret — in real estate, location is everything. And nothing could be truer than that when discussing where to situate your business. If you need to attract passersby to pop in to visit, you want a very different commercial real estate property than if you’re warehousing products. When it comes to finding the perfect location for your company, it’s absolutely imperative that you choose from commercial real estate brokerage firms.

By working with commercial real estate brokers, you can determine how to maximize your new property’s cost-benefit ratio. Commercial brokerage firms have access to properties that you don’t even know are available. And it’s only when you know what’s truly out there that you can make the best, most cost-effective choice for your business.

When considering whether to work with a particular real estate brokerage firm, among the key points to consider are:

1. The area of specialization of the real estate brokerage;
2. The location of the real estate brokerage firm;
3. The cost benefits of working with real estate brokers.

Action Steps
The best contacts and resources to help you get it done

Work only with commercial real estate brokerage firms offering the type of property you need

Different businesses need different types of properties; that goes without saying. But what many people don't realize is that different types of properties need different types of commercial real estate brokerage services. A company equipped to lease office space may not be the best fit to acquire property for development, and vice versa.

I recommend: Duke Realty is one of the biggest national commercial brokerage firms that specialize in property management and leasing as well as property development. With properties in more than 20 cities as well as being one of a only a few nationwide real estate development firms, Duke can help find your next commercial property.

Find a commercial real estate brokerage firm in the area in which you're looking

National real estate brokerage firms are excellent resources for commercial real estate assistance as long as they have a location in the area you need. If they don't, you're simply wasting your time. You need to be sure that you're working with local real estate brokers who know your area and how your unique commercial real estate market functions.

I recommend: LoopNet is the nation’s largest listing of real estate brokerage firms and commercial properties. You will need to register to search for local companies, but the registration is free and easy. NAI Global is a franchise of commercial real estate brokerage firms and offers many local affiliates for your convenience.

Save time and money by working with a commercial real estate brokerage

Many business owners try to find their own commercial property to save money. This is the very definition of cutting off your nose to spite your face. Instead, save your precious time and effort by letting a professional commercial real estate broker do the legwork for you.

I recommend: Sperry Van Ness is a commercial real estate advisory firm that specializes in working with business owners to find the commercial property that best suits their needs. Grubb & Ellis Realty offer investors a portfolio of commercial investment properties located in key markets.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many commercial properties are 'ghost listed,' or listed without a sign ever announcing their availability. If you're not working with one of the real estate brokers with access to the commercial system, you will have no way of finding these prime properties.

Commercial real estate brokerage firms have the experience, knowledge and skills to help your company find the best business space at the most competitive price. Commercial real estate brokers are trained and licensed to assist business owners in buying, selling, renting or leasing commercial properties. Commercial brokerage firms assist business owners in finding the best commercial space to meet their needs, including office buildings, hotels, apartments, retail, hospitality, shopping centers, industrial properties or even land.

Because commercial transactions require special expertise, it benefits your business to hire a commercial real estate finance broker with industry knowledge, access to the latest commercial real estate listings and professional negotiating skills. Before your hire a real estate brokerage firm, do some research and consider these real estate brokerage firms basics:

1. Do the real estate brokerage companies specialize in commercial real estate? What kind of experience do the real estate broker firms have in successfully completing transactions for your desired commercial property type?

2. Does the real estate investment brokerage have access to local, state and national commercial listings as soon as they come on the market?

3. What commercial real estate brokerage services does each firm offer to facilitate your real estate transaction?

Action Steps
The best contacts and resources to help you get it done

Hire a real estate brokerage firm that specializes in commercial real estate

There is a big difference between a residential real estate brokerage firm and a commercial real estate brokerage firm. Look for real estate broker firms who work only in commercial real estate. Find out what kind of commercial properties they specialize in, and choose real estate brokers who work specifically with your desired commercial property space.

I recommend: Landmark Commercial Realty specializes in multi-family, industrial, office and retail properties, and offers annual market reports for each property type. Fortune Associates Commercial Real Estate Brokerage works primarily with office, industrial and investment properties.

Choose commercial brokerage firms with access to advertised and unadvertised property listings

Select real estate brokerage companies who have access to commercial multiple listing services and get information about the latest properties as soon as they come on the market. Reputable commercial real estate brokers will have information about all the commercial property listings in your area, including properties not publicly advertised.

I recommend: Legend Properties has access to thousands of commercial property listings through their memberships in dozens of industry trade organizations and multiple listings services. RE/MAX Commercial features a national database of commercial real estate properties.

Select commercial real estate brokerage firms that offer value-added services

Look for real estate broker firms that provide a full range of commercial real estate services, including brokerage, property management, commercial real estate development and real estate investment. Commercial brokerage firms who offer a diverse range of services not only have the ability to meet your current real estate demands, but your future commercial real estate needs as well. For example, a full-service commercial real estate firm can find you the perfect business property, successfully broker the transaction, manage property tenants and help build your real estate portfolio for the future.

I recommend: Ramsey-Shilling Company is a full-service commercial brokerage firm that provides a range of real estate marketing and consulting services geared to owners, investors, developers and tenants. Starboard TCN Worldwide Commercial Real Estate offers a menu of value-added services for tenants, landlords and investors. Colliers International features an impressive menu of service options, including corporate solutions, facility management and valuation and appraisal services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Every commercial market is different. Work with real estate brokerage firms who understand your local commercial real estate market. If you choose to work with national real estate brokerage firms, be sure they have an office in your geographic area with real estate brokers familiar with local commercial property trends.