Service providers of all sorts like to say that they’re
“strategic”. What does it
mean for a real estate broker or consultant to be contributing to a client
strategically, not just tactically?
Most brokers in the business more than a few years have some
tactical capability. They can be
friendly, research options and shuttle paperwork to put a basic deal
together. While this is the
primary objective of the landlord, and the structure by which most commercial
real estate (CRE) providers are paid (through transaction fees/commissions), it
is not a good criterion for success from the business tenant’s or buyer’s
perspective. It does not rise to the level of strategic support for the client
and leaves many important factors to chance.
For the user side of an arrangement, the criteria for
success rests more on how the final outcome supports the brand, people and
operations of the organization. Of
course there are financial concerns and fundamental tactical goals for a lease
or purchase for the business. In the
long run, however, the larger impact will occur – positive or negative –
related to the fit of the facilities arrangements for the company across a
holistic array of impact areas.
CRE professionals that tailor their service to businesses instead of landlords
work to ensure their clients are making informed real estate decisions. Informed decisions rest on a good
understanding and articulation of the range of goals, objectives, directions
and values of the firm – broad, long term, strategic.
The best agreement is the one that helps the company
thrive. What that means and how
that’s achieved is different for every client. Sorting that out and helping the client get what they need
in the process sorts out the dedicated tenant representative from the rest of
the brokers.
What are some of the indicators to identify the CRE experts
that will help your business the most?
If the broker starts by telling you about the market instead
of asking you about your firm, they’re not focused on your needs.
If they talk about the size of their completed deals instead
of the results and successes of their past clients, they’re not focused on your needs.
If they want to show you spaces before they’ve inquired
about what is working and not working with your current space, and asking about
where you see your organization headed for the next 3, 5, 10 years, they’re not
focused on your needs.
If, on the other hand, they engage in a conversation around
your firm’s needs and values - the relationship between you and your clients or
customers, how you think about your employees, retention, what’s important to
you and for the success of your firm, what’s needed for your operations now and
going forward - then the process is off to a productive start. This path is headed to solutions that
support your firm broadly and forward looking.
Process is the key.
You want someone helping you and representing your interests that is asking good questions and really listening.
They should be able to articulate your range of desired outcomes, and to
move through the decision making process with this foundation. The better understood the range of
desired outcomes, the better the ultimate fit of a lease agreement or
acquisition in supporting your company’s success.
Good inquiry and process is valuable, and worth the
time for you to find the right person to work with. It produces consistently solid outcomes resulting in your
facilities supporting your bigger strategic, not just immediate tactical needs.
