3 ways of searching for a commercial real estate. Which one is the best?
There are only three ways to find a commercial space for oneself, for example an office, warehouse or a whole floor in a building: one can do it on one’s own, with the help of a broker or using the Realko24 internet platform. Each approach is slightly different and has its advantages and disadvantages. Let’s look at them one by one.
1. Looking for a property on one’s own
It has to be said straight away that this can be a breakneck task. Searching on one’s own means that one has to reach property owners or lease managers, which can be both difficult and time-consuming.
Real estate agencies have access to such contacts, but usually they will not want to share them… until one chooses to work with a broker and sign an agency contract.
A lone seeker of a commercial space has to look on his or her own through hundreds of offers, which are usually posted on the agencies’ websites. Moreover, once he or she chooses those that seem appropriate, the issue of getting contact with the administrator appears.
What is more, if it turns out that the offer is up to date, one has to make an appointment. Of course, if the owner or leasing manager will be willing to do so – unfortunately, tenants who are looking on their own, often arouse suspicion. As “unverified” people, they may face stiff resistance from landlords.
Acting alone, one has a lot of independence and responsibility for the process (unless, of course, someone is afraid of this responsibility). Also, one has a chance for better terms of the lease, because without a broker, one does not have to worry about commission.
2. Looking for a property with a broker
A broker puts a lot of time and energy into the transaction process. Thus, it is understandable that his or her service has a high price (usually 5-10% of the contract value). Although in theory it is the landlord who covers the cost of brokerage, a broker fee affects both the landlord and the tenant.
Another thing is that the broker’s knowledge is limited. By nature, he or she does not know all the properties in the city and hence he or she will not always have a good proposition for the tenant. Nevertheless, the broker will show the client around real estate he or she knows, hoping to sign a contract.
Usually, however, it only leads to the lose of tenant’s valuable time, caused by visiting buildings that were not suitable for him or her from the very beginning.
In addition, the broker is exposed to fluctuations in the property assessment. In other words, his or her advice may depend on the amount of commission he or she may get. In fact, different properties are associated with a different income, which can sometimes cause the tenant to get from the broker not the proposals that are best for him, but those that are the most lucrative from the point of view of real estate agencies.
When one gets a good broker (which may not be easy, but it is a different topic), he or she will be able to lead the tenant, recognize his or her needs and show some really good proposals. With the right knowledge and experience, an agent can shorten the search time and give some good tips, e.g., regarding the contract or office equipment.
3. Looking for a property using the Realko24
Using the online platform that matches tenants and landlords, the broker is ommited in the transaction. For some, it may be a flaw, especially if one needs to consult his or her needs, seek advice or get help in finding out the current situation on the market.
- This is the only option where the advantages greatly outweigh the disadvantages.
- Realko24 provides transparent rules – a fixed commission of 1%.
- This is a rate much lower than those on which brokers operate. The money saved thanks to this may encourage the landlord to offer the tenant better office equipment, lower rent or various other benefits for a start.
- By sending a query to Realko24, the tenant specifies what kind of surface he or she needs (various parameters are used for this). Then, it can be seen by those landlords who meet the requirements.
- Finally, both parties can contact directly, saving time, which would otherwise be wasted by hours of browsing through offers or fruitless meetings.