Some owners lease their own space. Many hire a listing broker, also called a landlord representative or leasing agent. If you own an office, retail or industrial property in Glendale, Pasadena or greater Los Angeles, here is what that broker should actually do for you.
1. Tell You What Your Space Is Worth Today
A good listing broker starts with a market review: lease comps, competing availability, and how your building compares on location, parking, condition and amenities. You should get a recommended asking rent, lease structure and concession budget with the reasoning behind it.
2. Build a Leasing or Sale Strategy
That includes which tenants to target, whether to spec suites or offer TI, how to handle partial-floor or multi-tenant layouts, and whether it makes sense to lease up the building before selling it.
3. Market the Property to Tenants and Brokers
Listings on the commercial listing services tenant brokers use, signage, flyers, floor plans and photos, and direct outreach to the tenant representation brokers who are active in your submarket. For a sale, an offering memorandum and outreach to investors, owner-users and 1031 exchange buyers.
4. Qualify Prospects
Not every interested tenant is a good one. Your broker should review financials, business history and the tenant’s intended use before you invest time and TI dollars.
5. Negotiate the Deal
Your broker compares proposals on net effective rent, not just headline rent, and negotiates the LOI terms that matter: term, rent increases, free rent, TI, operating expense pass-throughs, options, security deposit and guarantees. The lease itself should be prepared and reviewed by your real estate attorney.
6. Stay Involved After the Lease Is Signed
Renewals and expansions with existing tenants are often the most valuable leases in a building. A good broker tracks lease expirations and starts renewal talks early.
How Listing Brokers Are Paid
Commissions are negotiable and are usually based on the total lease value or the sale price, often shared with the tenant’s or buyer’s broker. Ask for the fee structure in writing before you sign a listing agreement.
Questions to Ask Before You Hire a Listing Broker
- What comparable spaces have you leased or sold nearby?
- What asking rent or price do you recommend, and why?
- How will you reach tenant and buyer brokers?
- How often will you report on tours and feedback?
- How long is the listing agreement, and how can it be ended?
Work With Iliad Real Estate Group
We provide commercial real estate landlord representation and commercial building sales for owners within about 20 miles of Glendale. Call (818) 836-4070 or send us a message for a free market review.