š Helping Tenants & Landlords get great deals + maximize ROI since 2009. Specializing in office, R&D & industrial leasing. Silicon Valley | SF Bay Area
@moseskagan Congrats! Sounds like you just closed a deal š Although having a little heartburn cutting checks for broker commissionsā¦
You bring up a valid question from an owners perspective.
Iād argue the simple answer is because the value is created at lease signing and validated when the tenant moves in.
Itās a percentage of the lease because brokerage isnāt simply a service - itās value creation. And the easiest measure of the value created is by the rent. This isnāt the only way it can be done, but itās simple and easy for all parties to agree on. Plus the terms of satisfaction have been fulfilled - bringing a ready, willing, and able tenant.
What youāre proposing, that brokers share in ownership risk through the lease term could be done⦠but it opens up a can of worms because on top of the service provided + value created youāre looking for a guarantee on variables outside the control of a brokerā¦
Brokers would take on significant risk with little recourse or safety measures in place. This would have to be offset somehow through increased compensation to offset the risk, along with structure and/or recourse mechanisms in place to protect the brokerās interests.
At the end of the day, owner decides if theyāre agreeable to the terms and risk associated with the lease (not the brokers) and even if landlord wants to work with brokers at all. As an owner you can source tenants yourself and be your own broker⦠itās not easy, but itās possible.
Squeaky wheel - assume nothing and simply advocate for your client. Reach out to every broker on the team. Donāt be surprised if you have to do it multiple times. That doesnāt work then cast a wider net - JLL brokers you have relationships with, property manager, owner/asset manager, anyone you have relationships with on the ownership side (even if not directly involved with the asset). If you have to then send an unsolicited offer. Be relentless. š Best of luck to ya
@realEstateTrent Thatās the best stuff, donāt miss it! Iāve got pancakes with parents this morning with my girls. They were so excited for this morning that they curled their hair and woke up 30 minutes early (on their own) - theyāre in TK and Kindergarten.
@CoyDavidsonCRE Surprisingly⦠Googleās ai sucks. ChatGPT runs laps around it. Iāve run them side by side and itās a non-compete. Given the depth of resources available I figured Google would crush⦠not the case.
Where he lives and what he does off duty is his business. Especially with the high cost of living in the Bay Area and California I would argue most first responders live outside the area they serve. It sounds like he makes the multi-state commute to report for duty otherwise if the commute is too much then he stays at the station - sounds to me like heāll be the fastest to respond to an emergency (firefighters do the same thing - they have living quarters where they can eat, sleep, workout, etc). So whatās the issue? Also, last I checked - employees donāt just casually decide when to show up to work⦠they have or receive a schedule or established terms/expectations in their employment contract.
This is stupid, if anything he should be celebrated! Thatās dedication to the community he serves - heās willing to take on that long of a commute for work. Plus sleeping at the station is the ultimate dedication and offers the fastest response time in an emergency (just like firefighters have living quarters at the station when they are on duty). Clearly heās not going home for lunch⦠stop bashing the police and others that serve and protect our communities, they should be respected and supported.
Shut it down! Itās a waste of our resources and even the name is misleading⦠it was originally supposed to be high-speed now itās planned to only become California Rail⦠the idea may have been grand, but the execution has been a pipe dream, letās scrap it and move on to bigger and better things.
Fresh cut by @davediggsthebarber at @thebarbersinc + Gentlemanās Bet kicks off Today - #1stto200lbs šŖš» @ The Barbers Inc. Barbershop https://t.co/SaL9VOYDCw