7 Questions to Ask Before Hiring a Commercial Realtor

7 Questions to Ask Before Hiring a Commercial Realtor

1. What Is Your Experience with Commercial Properties?

A commercial realtor’s experience plays a major role in the success of a real estate transaction. Unlike residential real estate, commercial transactions involve more complex factors such as zoning laws, lease structures, property valuation, and investment analysis. A well-experienced commercial realtor can help clients avoid costly mistakes and maximize investment returns.

A knowledgeable commercial realtor should be able to provide case studies or references that showcase their past successes. The more experience they have in handling transactions similar to the client’s needs, the smoother the process will be.

• Years in the Industry: How long has the realtor been working in commercial real estate? A seasoned professional brings more market knowledge and negotiation skills.
• Property Specialization: Some commercial realtors focus on office spaces, while others specialize in industrial, retail, or mixed-use properties. Clients should ensure the realtor has experience in their desired property type.
• Market Knowledge: Does the realtor have expertise in the local market? Understanding regional trends, economic factors, and demand fluctuations can provide a competitive edge.
• Transaction Volume: How many deals has the realtor successfully closed? A high transaction volume indicates a strong track record and ability to manage complex deals.
• Problem-Solving Ability: What challenges have they faced in previous deals, and how did they resolve them? A realtor with proven problem-solving skills can navigate unexpected hurdles in negotiations or contracts.

2. How Familiar Are You with Local Zoning Laws and Regulations?

Zoning laws determine how a property can be used, making them a crucial factor in commercial real estate transactions. Whether a business owner is looking to purchase a storefront or an investor wants to develop a new commercial space, zoning regulations can make or break a deal. A commercial realtor with strong zoning expertise will not only help clients find the right property but also prevent legal headaches and regulatory setbacks.

• Zoning Classifications: Understanding different zones (commercial, industrial, mixed-use) and how they affect property use.
• Building Codes & Restrictions: Ensuring the property complies with safety and construction regulations.
• Future Zoning Changes: Awareness of upcoming rezoning efforts that may affect property values or usability.
• Permit Requirements: Helping clients navigate permit applications for renovations or business operations.
• Environmental Regulations: Some properties may be subject to environmental restrictions that limit development or require costly compliance measures.

3. What Marketing Strategies Do You Employ to Promote Properties?

Marketing is essential when selling or leasing commercial real estate. Without the right strategy, a property could sit on the market for months, leading to lost income or decreased value. A skilled commercial realtor should have a clear marketing plan to attract potential buyers or tenants quickly.

• Online Listings: Posting on platforms like LoopNet, CoStar, and Crexi ensures the property reaches a wide audience.
• Social Media Campaigns: Promoting the listing on LinkedIn, Facebook, and Instagram to attract business owners and investors.
• Targeted Email Blasts: Sending property details to a database of interested buyers, tenants, or investors.
• Industry Networking: Leveraging contacts in the commercial real estate industry to generate interest and referrals.
• Search Engine Optimization (SEO): Using online marketing techniques to rank high in search results for commercial properties.
• Professional Photography & Virtual Tours: High-quality visuals help properties stand out and attract more serious inquiries.
• Print & Direct Mail Advertising: While digital marketing dominates, some markets still benefit from printed brochures, direct mailers, and local newspaper ads.

4. Can You Provide References from Past Clients?

A commercial realtor’s reputation is a key indicator of their reliability, professionalism, and expertise. Past client experiences provide valuable insight into how they handle transactions, communicate with clients, and solve challenges. A well-respected commercial realtor should have a list of satisfied clients willing to vouch for their work.

If a commercial realtor hesitates to provide references or avoids the question, it may be a red flag. A professional with a solid track record should have no issue connecting potential clients with previous buyers, sellers, or investors.

• Proof of Successful Transactions: A strong track record indicates experience handling deals similar to the client’s needs.
• Insight into Work Ethic: Past clients can provide details on the realtor’s responsiveness, negotiation skills, and problem-solving abilities.
• Trust and Credibility: Positive testimonials signal that the commercial realtor is trustworthy and delivers results.

5. How Do You Communicate with Clients Throughout the Process?

Effective communication is essential in commercial real estate transactions, which involve multiple steps, deadlines, and parties. Miscommunication or delays can lead to lost opportunities, financial setbacks, or legal complications. A commercial realtor should be proactive, keeping clients informed at every stage of the transaction. Clear and consistent communication helps avoid confusion, ensures smoother negotiations, and builds trust.

• Preferred Communication Methods: Does the commercial realtor primarily use phone calls, emails, video calls, or in-person meetings?
• Response Time: How quickly do they respond to inquiries? Delays in communication can impact negotiations and decision-making.
• Availability: Are they accessible outside of standard business hours for urgent issues? Commercial transactions often require quick action.
• Proactive Updates: Do they provide regular market updates, property recommendations, and status reports?
• Transparency: Are they clear about challenges, potential risks, and realistic outcomes?

Red Flags in Realtor Communication

1. Slow Response Times or Lack of Follow-Ups

A commercial realtor should be proactive and responsive, especially in fast-moving markets where properties get leased or sold quickly. If a realtor takes too long to return phone calls or emails, clients may:

• Miss Out on Deals: Commercial properties can receive multiple offers, and a slow response could cause a client to lose a prime location.
• Experience Delays in Negotiations: Timely communication is crucial when submitting offers or counteroffers. A delay in response can weaken a client’s bargaining position.

• Feel Unimportant: If a commercial realtor consistently fails to follow up, it may indicate that they are prioritizing other clients or simply not committed to the deal.

2. Unclear Explanations of Property Details or Transaction Steps

A competent commercial realtor should be able to explain market trends, contract terms, financing options, and property specifications in a way that clients can easily understand. If they provide vague answers, avoid direct questions, or fail to clarify complex details, it could indicate:

• Lack of Knowledge: A realtor who struggles to explain key aspects of a deal may not have the expertise needed to represent clients effectively.
• Intentional Withholding of Information: Some realtors may gloss over unfavorable details to push a deal forward.
• Poor Communication Skills: A realtor who cannot articulate important details clearly can create confusion and unnecessary stress.

3. Difficulty Reaching Them During Important Decision-Making Periods

A commercial real estate transaction involves multiple stages, including negotiations, contract signings, due diligence, and closing. A commercial realtor who becomes unavailable during crucial moments can create significant issues:

• Missed Opportunities: If a property receives multiple offers, delays in communication can put a client at a disadvantage.
• Contract Risks: In time-sensitive situations, failing to respond can lead to contract breaches, penalties, or unfavorable terms.
• Increased Stress for the Client: Clients should never have to chase down their realtor for updates or next steps.

6. What Is Your Fee Structure?

Understanding a commercial realtor’s fee structure is critical to budgeting and avoiding unexpected expenses. Unlike residential transactions, where commissions are typically standardized, commercial real estate fees vary based on the transaction type, market conditions, and the realtor’s expertise.

• Commission-Based Fees: A percentage of the total sale price or lease value, usually negotiated between parties.
• Flat Fees: A predetermined, one-time payment for specific services like property valuation or contract review.
• Hourly Consulting Fees: Some realtors charge by the hour for advisory services, especially for investment consulting or lease negotiations.
• Retainer Fees: Some high-level realtors require a retainer, particularly for long-term projects or exclusive representation.

7. Do You Have a Network of Other Professionals to Assist in the Transaction?

A commercial realtor is just one piece of the puzzle in a real estate transaction. Deals often require collaboration with attorneys, inspectors, appraisers, lenders, and contractors. A well-connected commercial realtor can introduce clients to reputable professionals, making the process smoother and reducing the risk of delays.

• Real Estate Attorneys: Handle contract negotiations, legal paperwork, and compliance issues.
• Property Inspectors: Assess the physical condition of a property before purchase or lease agreements.
• Appraisers: Provide accurate property valuations for financing or investment purposes.
• Lenders & Financial Advisors: Assist with securing financing options, commercial loans, or investment strategies.
• Contractors & Architects: Help with renovations, build-outs, and ensuring properties meet business needs.