It was a monumental decision, but you finally decided to dabble in commercial real estate! Congratulations! One of the most important pieces of advice we give our commercial real estate clients is to be mindful of where they are getting their advice and information.

Like all other industries, commercial real estate is also governed by a complicated nexus of market trends, operational dynamics, systems, and SOPs. Making the right decision about a commercial real estate investment or sale requires you to have the right guidance.

One of the most common mistakes we have observed clients making while making commercial real estate decisions is looking in the wrong place for guidance. No matter how well-intentioned the advice, you need to remember that it isn’t always correct unless the person giving it has had years of experience as a broker in the industry. Below are the sources you need to avoid:

1. Your Relatives/Neighbor

Your parents, relatives, neighbors may all be brimming with advice regarding your potential commercial real estate investment, but that doesn’t mean it is valid. As sincere as their interest might be, commercial real estate is complex, and merely making the same decision as another person who could profit in the past will not be the best for your portfolio.

Smile and nod when they offer their wisdom but don’t let it influence your decisions.

2. Coworkers

Your coworkers or boss can also be a source of terrible commercial real estate advice. Even if they have made a few profitable decisions, they are not in the position to know what your requirements are and which properties or clauses would suit you more.

While you can listen to their account of success, always remember that what works for one may not always work for others.

3. Real Estate Agents

Commercial real estate and Residential real estate are very different industries. While Residential real estate agents do have the basics down, they are not aware of the core market dynamics of commercial real estate or its inner workings.

While they are a much better source of information than the rest on the list, they are still not the source you need to rely on. Only a commercial real estate agent or broker can help you understand the property aspects and help you determine if it is the right one for you.

4. Blogs with Hacks for Cracking Complex Deals

There are no hacks to cracking complex commercial real estate deals. You need years of experience, expertise, connections, and knowledge to be able to gauge what is or isn’t a suitable opportunity. Quick hack blogs written by people who are not a part of the industry are likely to misrepresent information that can impact your earnings negatively.

Conclusion

To sum up, to become successful within the commercial real estate industry, you need to rely on the wisdom of people who have the right expertise – commercial real estate brokers.

If you are looking for a commercial real estate broker, please get in touch with our team. CHRE has had several years of experience in the industry and will help you make the right choice.