A real estate consultant provides brokerage and advisory services to their clients; they help them buy, sell, lease, manage, and invest in income property. There are three types of consultants: full service (they provide all services), limited service (they provide only some of the above mentioned), or project management (they supervise one or more projects for brokers/clients). All these services can be offered hourly and on a contingency basis.
Some consultants may specialize in individual areas such as tenant representation, consulting for commercial landlords, and managing multiple-use properties like shopping malls. This article will focus on common services offered by real estate consultants:
1) Buyer Brokerage
A buyer brokerage service is when the consultant represents the client when buying property. The consultant will act as an intermediary between the client and all parties involved in the real estate deal. After finding suitable properties for their clients, consultants may also suggest their values based on comps (property comparison), offer negotiations, and help with finance options.
2) Tenant Representation
Similar to buyer brokerage, tenant representation starts by identifying potential tenants to meet the business needs of commercial brokers or landlords. After establishing a relationship with key decision-makers in large corporations or retail chains, consultants can be hired to find office space or retail locations that best suit tenants’ requirements. In addition, they support the landlord during lease negotiations and provide tenants with all essential services such as site selection, lease negotiation, and space planning.
3) Lease Administration
Leasing is a crucial part of commercial real estate, from the initial contact between tenant and landlord to the drawings that reflect exact measurements of the space. During the administration process, consultants help find new tenants for vacant spaces, negotiate leases, organize drafts, and comply with building owners’ requirements.
4) Advisory Services
Consultants can also be hired for many other brokerage or advisory tasks. These may include: preparing financial projections, conducting feasibility studies for prospective investors, developing marketing strategy, and seeking out prospective buyers/sellers, among others. This can be done through various tools such as BRRRR Calculator DIRE used in complete analysis when buying a property.
In addition, they guide which type of properties to invest in or sell based on market changes by analyzing and interpreting financial reports. They also conduct cost-benefit analysis and value-return on investment to maximize profit.
5) Property Management Consulting
If you are a landlord, the consultant can provide advisory services to ensure that your income properties run smoothly through proper maintenance, renovation/repairs, increasing tenant retention rate, etc. They can also assist tenants in finding suitable space that fulfills their requirements.
6) Investment Sales Consulting
For investors considering selling commercial properties, consultants determine an appropriate time to sell based on market trends and fluctuations between supply and demand. They assess the property’s value by examining all sale comps in the area so it can be sold at the best possible price.
7) Project Management Services
Consultants manage commercial brokerage projects for brokers. They start by helping with site selection and office space planning, then client screening and negotiating financial plans for future income properties. Finally, they facilitate the process with government agencies/banks to help clients reach their goals.
Real estate consultants typically offer tenant representation, buying brokerage, and property management consulting to commercial brokers and landlords. Consultants may also specialize in advisory services for investors or real estate project management.
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