On new leases and purchases I am typically compensated by sharing commissions received by the listing agent(s). I can also be paid by a flat fee or retainer, both of which are fully refundable in the event I collect a commission on the transaction. Of note is that even though the property owner writes the commission check, it is the tenant or buyer that ultimately pays the tab as part of their lease payments or the purchase price. Also, if you represent yourself the entire commission is retained by the listing agent(s) and you get no value from the commission that you funded. In my experience, commercial tenants and buyers that represent themselves typically overpay and overlook important aspects of the transaction.

FAQs - Cross Commercial Realty Advisors

Q: Can you also help renegotiate my existing lease?

Absolutely. Even if a business wishes to remain in its current space thorough due diligence should be conducted to confirm vacancies, terms and concessions available elsewhere. This information can then be used to negotiate the most favorable terms possible at the current location. In short, a lease renegotiation should be treated as a new lease, where every term and condition is addressed and negotiated, and the process started no later than 6 to 9 months prior to the lease expiration date. Tips: Don’t’ wait for the landlord or property manager to contact you about exercising a renewal option or extending a lease. And never disclose your businesses’ circumstances or other buildings you may be looking at to the property manager, listing agent(s) or landlord.

Q: Should my business lease space or purchase a property?

As a rule of thumb, once your business, or medical or dental practice, has established itself as a viable going-concern, and providing you can clearly anticipate your space requirements over the next 3 to 5 years, you should consider owning.

Q: When should I start looking for space?

Done properly, the leasing or buying process generally takes 6 to 9 months to complete, including site research and selection, contract negotiations and constructing interior improvements. However, I suggest getting ahead of the matter by scheduling an annual review of your space requirements with your real estate advisor.

Q: Aren't commercial lease terms fairly standard?

Not at all. In fact, a commercial lease is a unique and complex transaction made up of many inter-related variables, each of which has an economic value and should be negotiated. Negotiable terms include, but are not limited to: the initial rental rate, free rent period, rental escalations, lease term, renewal options, tenant improvements, fixturization period, commencement date, warranties, building signage, parking, operating expenses, early termination provisions, holdover provisions, assignment privileges, and personal guarantees.

Q: Is the “market” rate the amount tenants and buyers generally pay?

The term “market rate” is synonymous with “asking” or “sticker” price, which is generally 10% to 25% higher than either the property owner or listing agent reasonably expects to receive. Further, because the details of commercial leases are proprietary, the term “market rate” is nothing more than an opinion of value. I view “market rate” as the LOWEST price property owners will accept. Property owners, and their agents, brokers and property managers, see it as the HIGHEST price tenants and buyers will pay. Clearly, we have different ‘opinions’ of value.

Q: What is a leasing “concession”?

A concession, or incentive, is any deviation from the property owner’s asking price. Of note is that concessions are seldom advertised or offered (read: they must always be negotiated.)

Q: Is there a single source database showing commercial properties available for lease or purchase? If not, why?

Unlike the MLS system for residential real estate, commercial real estate listings are not available in a single source database. This intentional scarcity of information serves to benefit listing agents and property owners, who wish to control the leasing and buying process. I maintain a proprietary database of every available space and property and know what terms and concessions can likely be achieved. Further, I have intimate knowledge about which property owners have the greatest urgency to lease or sell. Taken together, this information gives my clients invaluable leverage at the negotiating table

Q: Why should I choose you as my real estate advisor?

Your choice of advisors determines which properties you are shown and how much you will pay - and my specialty is solving the real estate problems of commercial tenants and buyers. Of note is that since 1984 I’ve helped over 2,700 business owners, medical doctors, dentists and corporate executives make fully-informed leasing or buying decisions and save hundreds of thousands of dollars on their real estate costs. While my maturity, knowledge and tactical acumen are strong indicators of my professional expertise, several things make me unique in the commercial real estate business: First: I don’t list properties, ever. Benefit: The inevitable and unavoidable conflicts of interest that listing agents face are eliminated, and my Clients are assured of receiving unbiased, confidential and tenacious representation. Second: I’ve leased space for my business and own commercial real estate. Benefit: I’ve taken every step my Clients are contemplating and have done so with my own money. Third: I’m a numbers guy, with a degree in accounting and the elite CCIM designation. Benefit: I am skilled at making numbers-based, bottom-line decisions and negotiating favorable terms for my Clients, whether they prefer to lease or purchase commercial real estate.

Q: What is the difference between commercial “advisors” and “agents”?

While they both are licensed professionals, true real estate “advisors” do not accept listings and can, therefore, provide unbiased, objective advice to their clients: the commercial tenant or buyer. Real estate “agents” typically list properties and are primarily sales people who have a fiduciary duty to protect the interests of their clients: landlords and property owners.

Can you also help renegotiate my existing lease?

Should my business lease space or purchase a property?

When should I start looking for space?

Aren’t commercial lease terms fairly standard?

Is the “market” rate the amount tenants and buyers generally pay?

What is a leasing “concession”?

Is there a single source database showing commercial properties available for lease or purchase? If not, why?

How are you paid?

Why should I choose you as my real estate advisor?

What is the difference between commercial “advisors” and “agents”?

(480) 998-7998