Things You Need to Know
What real estate markets do you serve?
We proudly serve the entire state of Oklahoma including Tulsa, Oklahoma City and many others.
Do you specialize in any particular types of commercial real estate properties?
We specialize in multifamily cash-flowing properties. We have found that investors purchasing this type of property have specific needs that are not common among typical brokerages. Clients need a professional not only in real estate but in this category of property.
When and why should I hire a commercial real estate broker?
Hiring a commercial real estate broker can save time and money in your search because a good broker knows the properties, landlords, buyers and sellers. You are involved in these transactions every now and then, while a broker does this every day. A good commercial real estate broker understands the total cost of the transaction and can help negotiate a deal that best suits your needs.
How are commercial real estate brokers compensated?
As a general rule, commercial real estate brokerage fees are paid by landlords in a leasing situation and sellers in a sale situation. For investment transactions, the seller always pays a fee. However, investment brokers often do not cooperate with a procuring broker. As a result, the procuring broker may need to be compensated by the buyer.
What percentage of the final sale price do you charge?
All commercial real estate brokers get paid on commission based on the representation of the two parties in a transaction. In a sale transaction, this would be the buyer and seller, and in a lease transaction, this would be the landlord/owner and the tenant.
The amount a commercial real estate broker receives on a commission is calculated as a percentage of the total commercial property sale price or lease value. While it’s illegal due to anti-trust laws to set a market- or industry-wide standard for commission percentages, most brokers earn anywhere from 4% to 8%.
The manner in which a broker is paid, and who is responsible for the payment, depends on whether the commercial transaction is a sale or a lease.
How will you find potential buyers/renters for my property?
1. Targeted social media ad campaigns
2. Promote listings with Google Ads
3. IDX lead-generating website
4. Landing pages to capture real estate buyer/renter leads
5. Find buyers for real estate within our network
6. Use niche marketing to target real estate leads
7. Geo-farm our real estate buyer leads
What are some of the mistakes people make when searching for commercial property?
One of the most common mistakes among businesses is to tour potential properties without having decided on a commercial real estate brokerage relationship. If you plan on hiring a commercial real estate broker or advisor to represent you, do so before you begin touring properties. For example, if you plan on trying to find multifamily properties on your own, make sure that any properties you have an interest in are shown to you by the listing agent (or owner, if the property is not listed).
In most cases all an agent has to do is to bring the tenant to a property and he or she is legally entitled to a portion of the leasing commission as the "procuring" broker. A tenant may never see the real estate agent again, but since that agent showed them the property, that agent will be paid a commission. These situations can get messy. For example, if a tenant later hires a real estate broker to represent them, a commission dispute will likely occur if the tenant enters into a lease on a property that was shown to them by another agent.
When should I start to evaluate opportunities to improve my commercial lease rate?
Typically, a tenant should evaluate their options 12 months prior to the lease expiration. However, given the aggressive posture of most landlords today, there may be an opportunity to save money if your lease is addressed 12-36 months prior to expiration. Here's why:
Landlords need longer-term leases on the books to renew their financing, and may cut the rent in exchange for a longer-term.
Many landlords want their buildings leased at any cost. Landlords are providing free rent and low face rates to lure prospects into their buildings. In addition, subleases are available at rates that are often 50 percent of comparable transactions.
What do commercial real estate brokers need from their clients to be effective?
A commercial real estate broker needs to understand the client's motivations and needs, so honesty is important. Shopping a deal through a number of real estate brokers reduces the effectiveness of the broker. I will take complete responsibility for the transaction when we are part of your team and empowered to seek the very best transaction to suit your requirements.
To get started in the search for commercial property, what do I need to provide to the commercial real estate broker?
The best way to get started is to invite the commercial real estate broker to an on-site visit of your current business location. There is a lot of information that needs to be gathered such as:
Geographic parameters (proximity, existing location, labor force, county preference (Taxes)
Number of employees now and in the future
Class building preference
Type of transaction: buy or lease or investment?
Special Requirements – power, clear height, Internet, etc.
Can you provide an estimate of what my commercial building is worth today?
Yes. The Investor's Broker has access to comparable building sale databases and appraisers that track building sales anywhere in Oklahoma for the user and investment buildings.
What are the differences in property tax rates between Oklahoma County, Cleveland County, Canadian County, and Lincoln County?
Property taxes in the Sooner State are among the lowest in both its region and the U.S. The median annual property tax payment in Oklahoma is $1,129, which is the ninth-lowest amount of any state. Furthermore, that comes in as just over half the $2,090 national median.
One reason for these low taxes is that state laws do not allow assessed property values to increase by more than 3% from the previous year’s value. Here are some valuable resources to help determine your property taxes.
Property tax rates for Oklahoma County
Property tax rates for Cleveland County
Property tax rates for Canadian County
Property tax rates for Lincoln County
What is the best way to select a commercial real estate broker?
Don't choose a commercial real estate broker without first checking client references and qualifications.
Also, ask the real estate broker if he has any listings that might present a conflict of interest. If so, what is the broker's plan to handle it?
How can a commercial real estate broker work as both a listing agent and tenant rep?
While some brokers specialize, most brokers work as both listing agents and tenant reps. A commercial real estate broker who is a property listing agent is working for the property owner. If you hire a tenant rep that also has listings, you need to know what listings they have and what conflicts that might create.
What distinguishes Grade A, Grade B and Grade C properties?
There are three general classifications for properties, based on criteria such as age, location, maintenance, and length of leases. However, there are no real standards for the grading system.
Buildings within the Grade A bracket are usually brand new or have been recently redeveloped or renovated. They are usually in prime locations and major cities. Interior space also comes into play. Grade A properties will feature high-quality furnishings and state-of-the-art facilities.
Grade B property refers to properties that fall below the Grade A remit, typically in terms of location, facilities, and maintenance. Grade B properties are usually maintained and finished to a good or fair standard, with adequate facilities. Materials used in the construction or fit-out of the building are functional but are not considered to be of the highest quality. Grade B spaces are often found in the suburbs or slightly cheaper areas, as opposed to Grade A offices which typically occupy the most sought-after locations.
Grade C properties are functional and available for low rent. Internal furnishings and décor are usually not maintained regularly, or to a high standard. These buildings are typically 15 to 25 years old, with steady occupancy.
Why choose a smaller commercial brokerage firm like The Investor's Broker, over a large, national real estate brokerage firm?
Many times the best salespeople in large firms are most effective at procuring clients. In contrast, The Investor's Broker is best at solving its client's real estate needs. The Investor's Broker prides itself in the commitment made to clients, honesty, trust, and results. Prospective clients must understand who will and will not be taking the lead on the project.
Do I need a real estate lawyer as well?
When you are buying or selling commercial real estate, you should work with a commercial real estate broker and a commercial real estate attorney. Each plays a different role in the purchase and sale of commercial real estate. A commercial real estate broker brings the buyer and seller together to make the deal. The real estate attorney reviews and prepares legal documents, and gives you legal advice. An attorney can also help you with negotiations and due diligence on the property. Both the broker and the attorney represent you, and they work together to make sure that the closing goes smoothly.