Is finding a space without hiring a broker a good idea?

Generally speaking, the answer is no. You as the tenant enter into a lease once every so often. A broker negotiates for space on a daily basis. Would you go into an IRS audit without having your CPA by your side? Same reasoning applies here.

Now let us examine a couple of cases where you might lease space on your own. The biggest driver is the dollar value of the lease commitment. The less space you lease and the shorter the term, the less rent that is due under the lease. Less rent means a smaller commission. A listing agent is much more motivated to lease space directly to a tenant versus having to share their commission. This is especially true for small spaces that generate small commissions. Also, if you are leasing a small space, you sometimes can’t get a tenant rep to work for you because it is simply not worth their time.

Posted in: Leasing Commercial Real Estate

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