Finding the Right Commercial Real Estate Broker in NYC
Finding the right real estate broker to assist with your specific needs can be a daunting task. However, your lease can be one of your largest business expenses so finding the right broker who is going to educate you and run an expert process is critical to a successful outcome. Being that there are thousands of real estate brokers in NYC, where do you get started.
As a first step, and this may sound obvious, it is important that you have a definition of your requirement. In order for you to select the appropriate broker, you want to hear how the broker reacts to your requirement and the knowledge that they convey. For example, the requirement can be as simple as we are an accounting firm, looking for office space near Grand Central Station with 10 offices, 2 conference rooms and an open area for 8 people, 5-10 yr lease, and it doesn’t have to be a premier office building. Granted, you may be open to exploring multiple markets or submarkets and are open to exploring a wider variety of asset classes. That is of course fine. Just make sure your broker has the experience and market knowledge to properly assist.
The great thing about hiring a commercial real estate broker to represent your interests is this. Unlike a law firm where the senior partner gets paid a higher rate than the junior partner, commercial brokers only get paid when the deal closes, and whether it’s a junior or senior broker the commission is the same and is paid by the Landlord. Therefore, being that the cost to the tenant is zero, there is no reason to not engage a high quality experienced broker?
Some things to understand before you get started. If you are looking for commercial space, make sure you are interviewing only commercial brokers, not a residential broker who “dabbles” in commercial. Working with an expert makes a big difference. (See my blog “Why didn’t the Landlord respond to my proposal?) Next, it is important to understand that commercial brokers have different areas of focus. Some focus on office, some on retail, some on sales, some on industrial. In a large City like NYC, there are brokers who even focus on certain industries such as tech, hedge funds, non-profits, and even focus on deal size or asset class. These are important questions to
The best place to start is asking business colleagues who have run a lease process themselves and if they had a good or great experience with their broker and would recommend them. I know a lot of blogs say ask business professionals such as a lawyer or accountant. This doesn’t make sense to me. Why would an accountant know a lot of brokers and whether they are right for you. The only way a lawyer would know is if they are a real estate attorney specializing in leasing. Then they would know a lot of brokers, otherwise how would a trust and estates attorney have these relationships?
Many blogs say look on LoopNet of Crexi. Yes, there are many brokers on these sites and maybe one can help you, but you should understand what these sites are meant for. These platforms are designed for brokers and owners to list commercial spaces for lease or properties for sale. It is not a site designed for brokers to market their abilities representing tenants. You can certainly speak to the brokers listed on the site to see if you think they are a good fit.
A better suggestion would be to contact the local sales manager at the leading firms in NYC. These firms listed by size are CBRE, JLL, Cushman & Wakefield, Newmark, and Colliers. Ask the manager of the office which broker they would recommend based upon your requirement. There are of course smaller firms in the city who will say they hustle or understand the needs of a small tenant. I don’t know that to be true. The larger firms have better resources and, in my experience, employ the higher quality brokers who have better market knowledge, have stronger relationships with the landlord, and are held to a higher standard of professionalism. Being that the tenants don’t pay the commission, why not work with a bigger firm and get better service.
There are other subtleties such as brokers who only represent tenant vs. brokers who represent both tenants and landlords. (See my blog on this). There are brokers who only represent tenants. They of course, will make the claim that they are better tenant advocates and have no conflicts of interest. This is really a branding thing, and no true reflection on a brokers ability to represent their client.
Other factors to consider include compatibility. You are going to spend time with this person. Responsiveness, patience, ability to articulate real estate concepts well. Keep in mind, these are secondary to experience, expertise in the market, and a track record of success and referrals.
I would be delighted to speak with you on any requirement that you have and share my expertise. If I am not the right broker, because the requirement is out of my wheelhouse, I will recommend others who are better qualified.
Paul Walker
212-984-7117
A commercial real estate broker specializing in all facets of office leasing for over 30 years, I’m also a proud native New Yorker with a deep love for this city. My commitment to my community is reflected in my founding of two real estate charity events and consistent involvement in professional organizations. Outside of work, I enjoy live music, movies, basketball, tennis, podcasts, and a continuous pursuit of knowledge, especially regarding history and the fascinating story of New York.