Commercial Leasing & Residential Real Estate – the differenceThis post was written by Tom Burke on January 21, 2016
I frequently get the question – Do you have any other listings or do you look after that building?
The answer is YES – we cover all the buildings and tenancies in the Te Aro, Thorndon & CBD areas. The average tenant only moves every 3 years if necessary and because most companies/organisations are not big enough to have a dedicated property person on the team, the job of leasing is often left to the Office Manager or EA to have a look around first and then report back to the Managing Director/Boss. Unfortunately the person charged with this new project often is totally unaware that Commercial Leasing is predominately run on a General Agency basis and as such most proactive agents will have most of the same listings unlike the residential real estate scene where 99% of the listings are on a Sole Agency basis and the potential buyer can only deal with the one agent who has the sole agency listing.
With commercial leasing, prospective tenants can contact a number of agents and frequently do. In the end they end up with conflicting information at times and can easily get confused with the sheer number of listings that are available as the agents have swamped them with every possible option known to man.
We politely suggest prospective tenants only contact 2 reputable agents (Capital Realty preferably being one of these!) and work through the options in a professional manner and after this process if they still haven’t found any suitable options, then cast their net further by contacting other agents.
Most commercial agents are professional and would like prospective tenants to act professionally as well rather than working with a wide range of agents. If the agent knows you are only working with 2 agents for example, the agent is more likely to give you more attention as there is a better chance of him/her receiving commission. The vast majority of commercial agents are on “commission only” so are extremely motivated to assist you find a suitable tenant. The less agents you are dealing with the more motivated they will be!