Why CRE brokers love the Industry (RE)port

2017-11-08

One of the most frustrating times for a commercial real estate broker is waiting for approval of a commercial lease. In such a competitive marketplace as commercial real estate, brokers can feel like the time gap between finding a tenant and signing a lease costs more than the commission might pay. Nevertheless, a thorough analysis of a tenant’s financial status, industry performance, and lease terms cannot be sacrificed for the sake of time. This is one of the reasons why CRE brokers love the Industry (RE)port. Here are a few other ways the Industry (RE)port matters to commercial real estate brokers.

Five elements that contribute to the success of a CRE broker include your company, your market, your specialization, your firm’s culture, and your personality, according to Wall Street Oasis. While your company, its culture, and your personality are decisions reserved for the individual, the Industry (RE)port gives brokers insight into over 800 markets granular to zip code levels, which aid CRE brokers in advancing their careers.

In terms of specialization, while not all CRE brokers choose to specialize, often they organically settle into a niche based on factors like personality, networking, and expertise. In order to specialize, VTS advises that brokers need to have a strong handle on the current economy, customer base, and competitors. Since these elements change at breakneck speed, CRE brokers can rely on the Industry (RE)port for real-time, government certified data within over 1000 industries on demand.

Let’s return to our frustrated commercial real estate broker who now has more than one potential tenant in queue for approval. What could possibly hinder this process? While a tenant may present with beautiful financials, the tenant’s industry may be taking a rapid flight down an elevator to the basement. The Industry (RE)port is able to track trends of employment, establishments, rents, and key financial ratios to inform brokers on how tenants and lease terms fit together. For instance, in the event a retail tenant applies for a 10-year lease term in an industry experiencing a tailspin, the Industry (RE)port would quickly flag this arrangement as high risk. The wait time is over before it has begun. Of course, the opposite can be true as well. If the industry is ripe for growth and demand is high in the local market, a tenant may be approved sooner rather than later by using the Industry (RE)port.

A commercial real estate broker well-equipped with the Industry (RE)port will save time, money, and much frustration not only in the lease underwriting process, but also throughout the duration of a broker’s career.