In today’s complex market, most commercial real estate disposition assignments are executed using the services of a qualified broker to analyze the market and the property and to sell the asset for the highest possible price in a timeframe that is consistent with the specific needs of the owner/client.

If no obvious choice exists, most owners interview two or three brokerage firms and then make an informed selection, based in part, on the following: 

  • The firm’s national reputation;
  • The firm’s presence in and knowledge of the immediate local market; and
  • The profile, resumes, references and experience with similar properties of the broker(s) who are actually going to be executing the business. 

Other considerations include: 

  • How have the potential brokers each underwritten the value of the property –   have they considered the underwriting from the lender’s point of view?
  • If the property has existing debt, can it be assumed and if unfavorable, restructured or paid off at a discount?
  • Have the brokers suggested multiple positioning strategies, such as selling a multi-building asset in select pools, based on their location on the site, their tenancy or use?
  • Have they considered the highest and best use of the property and might its present use be modified or completely redeveloped to create greater value?
  • Consider the brokers’ respective comprehensive marketing plans.  Have they devised a way to capture local, regional, national and international investor attention through multiple circulation channels?
  • Is each firm willing to engage and assist co-operating brokers from other firms to aid in selling the property?
  • Is the reporting format provided by each broker electronic, state-of-the-art and does the frequency and depth of reporting fit your needs?
  • Are the brokers willing to commit the necessary time and resources to your assignment?
  • Has each broker constructed and is capable of selling the “story” and the “investment rationale” of your property in a deep and convincing way to prospective buyers? 

And, most importantly, are you comfortable that your selected broker will function as your consultant with your best interests in mind at all times, rather than approaching the assignment with a transactional, payday-oriented mentality? 

Once you have considered at least the above, one brokerage team will usually stand out from the others, making the choice much easier with a greater likelihood of success.