commercial real estate broker - haworth commercial real estate broker playbook 4 the team to...

1COMMERCIAL REAL ESTATE BROKER PLAYBOOK

Commercial Real Estate Broker Playbook


Getting to Know the Commercial Real Estate BrokerIn our industry, relationships have traditionally been rooted in the A&D

world. But the First Choice initiative has broadened our approach and

emphasized a stronger focus on commercial real estate brokers. What

do we know about what drives them or how they work? This playbook is

a guide to the role they play in the commercial real estate industry, the

activities they engage in, and the language they use.


Buying ProcessCommercial real estate brokers are active in the commercial real estate

site search process for leased or owned property (or lease renewal for an

existing location).

EARLY BUYING PROCESS LATE BUYING PROCESS POST SALE

C-SuiteHR LeaderVP Real Estate



C-SuiteVP Real Estate

VP Real EstateVP Facilities

VP Real EstateVP FacilitiesProcurement

C-SuiteProcurement

VP Facilities VP Facilities

WALLET HOLDERS

Architect ArchitectArchitectRE Broker

ArchitectInt. Designer

ProjectManager

ProjecetManager

ProjecetManager

ProjecetManager

INFLUENCERS

Catalyst Research Real Estate Decision

Bid Award Install Post-ProjectStrategic Planning

Design

Loop back to Strategic Planning

PLAN PROSPECT DEVELOP project / DEVELOP account PROPOSE CLOSE GROW

Typical interaction at each buying process stage

Customer Buying Process Steps

Haworth Sales Process Stages


The TeamTo understand how commercial real estate brokers work, it’s helpful to first

know how their firms are structured. There are always exceptions, but here

are the primary players in a typical large commercial real estate firm.

*Note: A broker, on behalf of their client, may hire a project manager, either internal (from their

own firm) or external (on contract). A broker may also hire a furniture consultant on behalf of

their client; some firms have their own furniture consulting team.

Broker

a licensed professional and trusted advisor

in commercial real estate negotiations or

transactions; an agent for others

Project Manager(s)

provides support to clients with respect to their

real estate needs (e.g., expansion, contraction,

remodels, etc.)*

Office Manager/Administrative Assistant(s)

runs the office and supports the broker(s)

through a variety of duties

Property Manager(s)

part of the property management division that

manages properties for clients

Marketing Department

markets the firm and its capabilities; may also

work on marketing materials to list property

that is for sale or for lease

Financial/Research Analyst

provides industry and market research and

analytics for customers, prospects, lenders,

and investors


RolesThere are several different hats a commercial real estate broker may wear:

**Note: It’s not advisable to utilize the same broker for both parties.

Larger firms

often assign brokers to specialize in a specific

area, such as industrial, office, or retail

Landlord/Seller Agent

broker who represents a landlord or seller and

works to market their property for lease or sale

Tenant/Buyer Agent

works for an individual or company to locate

commercial space and represent their interests

to landlords; could also assist a client in the

purchase of commercial property**


Time is Money: A Day in the Life of a BrokerFrom the moment they get up, brokers are working their network, which

includes developers, landlords, building owners, general contractors (GC),

commercial lenders, architects, and leasing agents.

They also seek new leads, which come from a variety of places: their

C-Suite relationships, existing clients, and other members of their network,

including online groups such as LinkedIn; media sources with reports

on growth and change; lease expiration reports; organizations such as

CoreNet and CREW Network; and referrals.

In any given year, commercial real estate

brokers may have, on average, 20-40 active

transactions.

Brokers are driven by end results. They want to be known among their

peers as the commercial real estate market expert and trusted advisor

to clients—while keeping costs down. To brokers, time is money—it’s

all about closing the deal, so they diligently work their network, always

seeking referrals and introductions to real estate influencers.


IncomeRate of compensation (called brokerage fee or commission) is computed

commonly as a fixed percentage of the value of the transaction.

Brokers generally make money in two ways:

Other services offered that

generate income on a fee

basis (e.g., property or project

management)

Commissions paid by

landlords (or sellers) – split

between tenant/buyer agent

and landlord/seller agent

In a lease transaction the landlord pays the commission directly

to the broker; in a sale transaction, the owner of the property pays

the commission.

Top Commercial Real Estate Firms in

North America

• CB Richard Ellis (CBRE)

• Jones Lang LaSalle (JLL)

• Cushman & Wakefield

• Colliers International

• NAI Global

• Newmark Knight Frank

• Savills Studley

• Cresa


What Value Can Haworth Bring to Brokers?We have many areas of expertise, lots of research and knowledge,

and many established relationships that are useful to commercial real

estate brokers and demonstrate our role as an experienced, trusted, and

resourceful advisor:

• Space utilization studies and expertise

• Attraction/retention studies

• Affordance design

• Well-being research and knowledge

• Furniture budgeting

• Clientele and prospects

• Flexible space design through our Organic

Workspace® approach

• A platform of Integrated Palette™ products

• Virtual renderings and visualization

• Showrooms as idea starters


• Become an active member of a commercial

real estate association.

• Attend networking events.

• Attend events that C-Suite attend – CEOs, in

particular, are targeted by brokers.

• Host events in showrooms on topics brokers

would find beneficial.

• Engage with nonprofit organizations where

brokers are on the Boards—or, even better, sit

on the Board for those nonprofits you are also

passionate about.

• Prepare for a call or meeting by staying abreast

of information on LinkedIn, local business

journals, social media, news media, and by

learning about brokers’ customers.

• Introduce existing Haworth clients to

brokers—give them one warm lead and you’ll

have them for life.

• Organize events that introduce brokers to

architects, designers, and end users.

Ways to Engage with Brokers

Associated Organizations

• Commercial Real Estate Women (CREW) Network

• CoreNet Global

• Society of Industrial and Office Realtors (SIOR)


LingoLike many industries, commercial real estate has its own jargon.

Here are some of the key terms that would be useful to know

when communicating with brokers:

BuildingWhere the premises is located.

Common area maintenance (CAM)The term CAM and OPEX may be used

interchangeably when referring to the charges

passed back to a tenant.

Improvements & alterationsDefines what may be done in the premises.

InsuranceDefines the insurance limits that must be in place by

the tenant for the premises and by the landlord for

the building.

Operating expenses (OPEX)The cost incurred by the landlord to maintain the

building; these include, but are not limited to:

insurance, real estate taxes, utilities, janitorial, repairs,

maintenance, etc.

PartiesThe legal entities on the lease (both landlord and

tenant).

PremisesWhat the leased space is called.

RentHow much is being paid to lease the premises.

Rentable square feet (RSF)The USF plus a pro-rata share of the common areas

of the building, which add more square footage

(the “add-on factor”); rent is calculated on the RSF.

Each tenant shares in the cost of maintaining the

commons areas of a multi-tenant building.

Repairs & maintenanceOutlines what the tenant’s and landlord’s

responsibilities are.

Security depositA set amount of money the tenant pays to the

landlord as security against damages to the premises.

Tenant improvement allowanceThe amount of money the landlord offers to a

tenant for the tenant to make improvements to the

premises.

TermLength of the lease; varies by market.

Examples: Office: 5-10 years, Retail: 3-5-10 years,

Industrial: 10-15 years

UseWhat type of business may take place in the

premises.

Usable square feet (USF)The actual square footage a tenant occupies from

wall to wall within the leased premises.

Haworth is a registered trademark of Haworth, Inc.

©Haworth, Inc. 2018 12.18

haworth.com | 800.344.2600

Questions? Contact [email protected]

to tap into your network at Haworth.

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