COMMERCIAL ACQUISITION SERVCE
COMMERCIAL ACQUISITION SERVCE – Q & A'S
ISN'T THE AGENT PAID BY THE OWNER OF THE PROPERTY?
Most people assume that 'commercial' agency is much the same as residential estate agency, where usually an agent represents (and is paid by) the owner of the property. However, when looking at commercial property transactions in Central London, it can be seen that there are invariably two agents involved , one of whom represents the tenant or purchaser and the other, the owner.
WHY IS IT DIFFERENT IN COMMERCIAL AGENCY?
There a number of reasons for this. Firstly, a tenant or purchaser who retains an agent will have a much wider choice of property because that agent will have access to a professional database that is not accessible by the public. More importantly a tenant or purchaser will have the reassurance that, having found a property, the best terms have been achieved because these have been negotiated by a professional. It is as well to remember that an agent acting for a landlord or vendor is being paid by his client and however nice they may seem to be they will not be looking after your interests, but will be working in the interest's of their client.
BUT HASN'T AN AGENT GOT HIS OWN PROPERTIES?
A commercial agent will no doubt have a number of instructions where he is instructed by the owner but these will only have a limited number to offer within a given search criteria. However, in commercial agency hard copy information is shared every day between commercial agents via an 'internal clearing house' and most subscribe to a computerised database, operated by a specialist data company carrying records of many 1,000's of properties.
WHY CAN'T I JUST LOOK FOR BOARDS?
You can, and you may be lucky and find exactly the right size, with the right facilities in the right location but the truth is that boards are more about advertising the agent than anything else, whereas a specialist database, held by a good commercial agent will provide all available properties which can be filtered to any given search criteria. Therefore a retained agent will not just be restricted to direct instructions but will be able to supply information on everything that is on the market in a particular area of search. Having an agent to act for you is the best way to avoid wasting your valuable time walking the streets looking for boards.
WHAT'S WRONG WITH NEGOTIATING A LEASE MYSELF?
On the rental side a lease represents a legal interest in land, and is a private contract between the parties. It is a complicated document covering many issues which the layman may not recognize as important or relevant, but may have huge impact or significance during the course of the lease. Most of the basic terms will be negotiated by the agents concerned in the form of Heads of Terms taking into account, for instance, such matters as potential incentives, a commercial view of the market, normal business practise and issues relating to value, rent reviews, options to break etc.
HOW MUCH WILL I HAVE TO PAY TO RETAIN AN AGENT?
Remember you only pay a fee if the transaction goes through and your agent will probably have saved much more through the negotiations than the fees that you pay. For further information see 'Acquisition Service'.
ISN'T THE AGENT PAID BY THE OWNER OF THE PROPERTY?
Most people assume that 'commercial' agency is much the same as residential estate agency, where usually an agent represents (and is paid by) the owner of the property. However, when looking at commercial property transactions in Central London, it can be seen that there are invariably two agents involved , one of whom represents the tenant or purchaser and the other, the owner.WHY IS IT DIFFERENT IN COMMERCIAL AGENCY?
There a number of reasons for this. Firstly, a tenant or purchaser who retains an agent will have a much wider choice of property because that agent will have access to a professional database that is not accessible by the public. More importantly a tenant or purchaser will have the reassurance that, having found a property, the best terms have been achieved because these have been negotiated by a professional. It is as well to remember that an agent acting for a landlord or vendor is being paid by his client and however nice they may seem to be they will not be looking after your interests, but will be working in the interest's of their client.BUT HASN'T AN AGENT GOT HIS OWN PROPERTIES?
A commercial agent will no doubt have a number of instructions where he is instructed by the owner but these will only have a limited number to offer within a given search criteria. However, in commercial agency hard copy information is shared every day between commercial agents via an 'internal clearing house' and most subscribe to a computerised database, operated by a specialist data company carrying records of many 1,000's of properties.WHY CAN'T I JUST LOOK FOR BOARDS?
You can, and you may be lucky and find exactly the right size, with the right facilities in the right location but the truth is that boards are more about advertising the agent than anything else, whereas a specialist database, held by a good commercial agent will provide all available properties which can be filtered to any given search criteria. Therefore a retained agent will not just be restricted to direct instructions but will be able to supply information on everything that is on the market in a particular area of search. Having an agent to act for you is the best way to avoid wasting your valuable time walking the streets looking for boards.WHAT'S WRONG WITH NEGOTIATING A LEASE MYSELF?
On the rental side a lease represents a legal interest in land, and is a private contract between the parties. It is a complicated document covering many issues which the layman may not recognize as important or relevant, but may have huge impact or significance during the course of the lease. Most of the basic terms will be negotiated by the agents concerned in the form of Heads of Terms taking into account, for instance, such matters as potential incentives, a commercial view of the market, normal business practise and issues relating to value, rent reviews, options to break etc.HOW MUCH WILL I HAVE TO PAY TO RETAIN AN AGENT?
Remember you only pay a fee if the transaction goes through and your agent will probably have saved much more through the negotiations than the fees that you pay. For further information see 'Acquisition Service'.
© 2012 Hurford Salvi Carr
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