IS YOUR TENANT REP BROKER REALLY ON YOUR TEAM?
GOOD RELATIONSHIPS ARE EXTREMELY IMPORTANT IN BUSINESS…BUT IT CAN ALSO BE DETRIMENTAL TO YOUR BUSINESS.
Let me explain a scenario:
You have a great relationship with your local commercial real estate broker. He has taken you to dinners and baseball games & you just really like the guy (most brokers are masters at this). When it comes time for you to take a 350k square foot warehouse, he is your go-to guy to represent your interests in the market to secure a warehouse. The problem is that he also represents the interests of large institutional landlords… which clearly creates a conflict of interest.
He is a geography-focused broker, so he makes you think "I know this market better than anyone else". But what that means is that he goes to the same dinners and baseball games with the Landlords hoping to land some new listings or sell them a parcel of land he has been trying to sell for 6 months. If he can just get you to sign that lease @ some slightly over-market terms, he can use that as a reason to push this landlord to buy that parcel of land to build a new industrial park and then he can secure the listing of 3M+ square feet of space. Who is the bigger fish here? Your 350k sf warehouse requirement, or the opportunity to represent this landlord on the new 3M+ square foot industrial park (after also selling them the dirt)?
This is important to understand - The ONLY way to build a long-term, profitable, commercial real estate brokerage business, is to do a lot of business with the same people.
If your broker is locally focused and represents both landlords & tenants, you are not his top priority. The landlords are. (don't get me wrong, we need brokers to do what they are doing for everything EXCEPT representing Tenants).
You will get a "market" deal & "market" is whatever they tell you it is.
This is why Growe 3PL Real Estate exists. We saw this conflict continue to happen, & realized we needed to focus on an industry (3PLs) rather than a specific geographical market. This allows us to eliminate this conflict of interest, be extremely involved in our client's businesses (sourcing new customers, acquisitions, new technology, etc), & do a ton of business with the same people.
We feel like your internal real estate team/Chief Growth Officer that you never have to pay.
This is a very different operation than any other real estate firm & we are not for everyone. But if you are a mid-market, growth-minded, warehousing/fulfillment operator, I can guarantee you there is no one better to represent your interests than the Growe 3PL Real Estate team.
Reach out to me, Kash Knutson, Jason Fox, Jett Jones, III, or Andresa Newbold, MBA if you want to learn more about Growe 3PL Real Estate and what we can do for you.
#Growe #3PL #Industrial #RealEstate #TenantRepresentation