As brokers, we have many large clients with experience in commercial real estate. But we also have clients that have never owned a brick and mortar business, yet they have a dream and are looking for space. This process ends up being a huge learning curve for them. They may be new to commercial real estate, but at CEG, we aren’t. After thirty years, I’ve pretty much seen it all. Here’s how we help make the big moves happen:
1. We coach people on how to get their financials in order. Before looking for a space, getting emotionally connected to a vision, or talking deals, clients need to have a personal financial statement (PFS). As a financial snapshot, a PFS breaks down personal assets, liabilities, and net worth. It lets financial institutions, brokers, and potential landlords know if a client is financially able to enter into a deal. It's also required for business or franchise purchase. A PFS is something everyone should have and learn how to develop.
2. We educate clients about the importance of keeping finances in order and being financial literate. A PFS should be updated each year to make informed decisions about risks, investment goals, and savings. By knowing the numbers, clients can track progress, figure out areas that need adjustments, and make better decisions.
3. We connect clients with the right people along the way. I said in last week’s short, brokers are “walking, talking resources.” Because clients enter into commercial real estate with different levels of understanding, connections, and experience, brokers keep a wealth of contacts and resources handy. The client who has a “not yet realized” business dream, needs to start at step one. We refer clients to SCORE (free, expert mentoring, resources, and education) and SBA (government agency to support entrepreneurs and small businesses) when they are at the early stages of starting a business.
4. We ask questions many clients have never thought about. Not only do they need to think about these things, but we also learn more about the client’s thoughts, situations, and goals. The more we know, the better we can represent their interests. With CRE deals, there are a lot of moving parts and each need to be aligned for success. The more information we have the better.
5. We provide options. We help clients view things through different lenses. Sometimes that includes a reality check. There are some space changes that are “wants” and not “needs.” This is another example of how PFS knowledge can guide decisions. For example, clients new to commercial real estate don’t know that build outs can cost hundreds of thousands of dollars. Maybe that wall doesn’t need to be removed after all.
Conclusion
At CEG, we’re here to help! Especially if you are starting a business and new to commercial real estate. We coach people about the importance of financial organization and literacy and connect them to the right resources. We also ask questions and provide options in order for our clients to get the best deal and the most realistic one. If you or someone you know is moving a new or current business to a brick and mortar, let’s connect.
Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
Comments