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What is the best/standard way of finding commercial retail space for lease? Do most people use a broker?
I have looked on sites such as loopnet.com, showcase.com, etc, but there's a lot I don't know about leasing commercial space as far as negotiating goes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Go to the BOMA website (Building Owners and Managers Association International) and poke around, you can learn a lot. If you are looking for retail space, location is important. Drive around looking for suitable locations, and note the management name/phone which are almost always on a sign. If not, you can simply ask at one of the businesses there. You can often negotiate and secure a space that is not yet being marketed, if you contact the management and they have an upcoming lease expiration. Brokers are paid to find tenants, and that is passed on in the rent. Finding a place without using a broker can save you money in the long run. We recently did a 5 year lease with an option for another 5 years, and the broker fee was over $70,000. The base rent included an additional dollar/sf/year to help cover it, that's about $1,000/month more rent meaning we get most of it back during the 5 year lease.
The commercial real estate market is much less standardized than the residential real estate market. That’s why I recommend you to hire a commercial real estate broker.
Also you may want to consider working with a real estate attorney who can help you navigate the lease.
It seems like a strange arena. I drive around and see For Lease signs and empty space everywhere, but I can't find any listings for them.
Any tips on finding a suitable broker? I don't have much word-of-mouth to go on.
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