For even the most qualified and experienced of brokers in northern Nevada, buying and leasing industrial and commercial real estate is a complex process. In our current landlord-favored market, challenges include the limited selection of properties, high rents, lengthy lease terms, multitude of buyers, few – if any – landlord or seller concessions, and many other scenarios that make most transactions decidedly one-sided. The good news is that the right agent and the right firm can help buyers and lessees adjust their expectations to maximize what leverage they do have.
The Lay of the Land
Accurate data on current market conditions gives a buyer or lessee, or more likely, their agent, a big-picture understanding of how a given transaction might play out. What’s more, the right data is key in accurately forecasting the market, which can mean a huge advantage. Knowing what similar properties have been trading for in the marketplace with your landlord or seller will save a lot of time and frustration in the process.
The trick, of course, is starting with the right information.
For example, as Miller Industrial Properties prepares its free quarterly report, the Market Advisor, as we wind down Q1, we’re compiling the comprehensive, up-to-the-minute data we maintain about our local northern Nevada market. You’ll have to download your free copy next week to learn more about something interesting we’ve been observing. While the overall market continues to remain extremely landlord-favored, we are seeing small variations in which certain landlords in certain types of property are actually offering attractive deals.
Asking a potential broker about current market conditions is always a critical place to begin. You should expect specific, data-driven answers that clearly reveal expertise and experience. From there, we recommend the following.
Ask how and why they specialize. Do they primarily represent landlords or owners? Do they focus on specific building types and class?
Ask about their specific experience as it pertains to you. Listen carefully for examples of previous transactions that are similar to yours, and ask specifically about the success of these examples in terms of the client’s original expectations and the market’s constraints at the time.
Ask about capacity. We’ve written before about the benefits of the boutique firm over the national franchise, and capacity is one them. Will you be a priority, or one of many clients? Ask about marketing strategies and action plans to get an idea of how much attention you can expect.
Ask about resources. It’s true that some local firms operate on limited platforms with little research or administrative support, but don’t assume that partnering with a local franchise loops you into anything better. Miller Industrial Properties is the longest-running boutique firm in northern Nevada, and our data, marketing prowess and support staff means exceptional representation.
Ask about membership in professional organizations. Designations that indicate a broker is part of a professional organization, like a Certified Commercial Investment Member (CCIM), indicate a level of experience and education that mean you’re working with an esteemed professional.
If an industrial property here in northern Nevada is in your future, you can’t get started too early. We invite you to contact us, ask us about the current market and all of the questions we’ve listed here, and let us show you how the right data and the right experience can make a huge difference.
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