Phase II Topics

Phase II Topics

Engaging A Broker

Independent Search

You might be thinking…

How do I go about looking for a new retail space?

There are generally two approaches to a real estate search:

  1. Find a commercial real estate broker to represent you, or
  2. work independently on your own search.

Terms to familiarize yourself with

The act of going door-to-door in a neighborhood to initiate conversation with local members of the community in order to obtain a better sense of the true character, challenges, and strengths of a particular area, especially as it relates to the current and prospective retail landscape.

Engaging A Broker

Finding a real estate commercial broker to represent you is known as “tenant representation” — the broker will represent you, the tenant.

FYI: On the other side of the deal, “landlord representation” is when a broker represents the landlord in a real estate/ lease transaction.

How Tenant Representation Might Work

What To Look For In A Broker

Find a broker that you already know and trust, or one who comes recommended by someone in your network. The key is to find someone with credibility, experience, and hustle.

Your broker should be prepared (and able) to assist with site selection, outreach to landlords or other brokers, and help leading lease negotiations for spaces.

Your broker advocates and works on your behalf to find spaces that meet your defined search criteria (from Phase I) through their personal network of other brokers, landlords, and business contacts.

Your broker should have specific retail leasing experience.

What To Expect From A Broker

The broker works on your behalf. They should be a partner, advocate, and trusted confidant in the search process.

Note: It is standard practice that the tenant (you) does not pay a broker throughout this process. Brokers are typically paid a commission (often a percentage of the overall rent throughout the term of a lease) by the landlord at the completion of the leasing process.

What A Broker Expects From You

A broker wants to work with an organized, committed, and funded tenant.

  • That means that you need a clear plan for your concept, your timeline, and how you will fund your business – all of the steps outlined in Phase I.
  • Being organized and having a clear plan will signal to the broker that you are serious about this work.
  • Brokers are typically paid upon lease signing. Therefore, they are most motivated and incentivized to work with a team that is prepared to sign a lease and not just “window shopping.”

Independent Search

Self-driven process by you, the business owner. This means…

  • You know what you are looking for, including target areas, market rents, space requirements, project budget, and more.

  • You know what key questions to ask a landlord or a broker working for the landlord.

  • You are comfortable with online real estate search sites, like LoopNet, CityFeet, etc., or combing brokerage websites for listings.

  • You will canvass neighborhoods of interest and cold-call phone numbers on “for lease” signs.

  • You may reach out directly to developers with new projects in the pipeline about future opportunities that are not yet advertised (having heard about projects from the news or people in your network).

  • You are familiar with and comfortable negotiating the basic terms that will go into your retail lease.

  • You are willing to engage with local government agencies to identify programs that may offer support through your search, such as:

    • Neighborhood “Main Streets” programs (the City of Boston has 20 such Main Streets districts that aim to build and sustain healthy commercial districts)
    • Community/economic development departments
    • Neighborhood organizations in your targeted trade areas

  • You know what you are looking for, including target areas, market rents, space requirements, project budget, and more.

  • You know what key questions to ask a landlord or a broker working for the landlord.

  • You are comfortable with online real estate search sites, like LoopNet, CityFeet, etc., or combing brokerage websites for listings.

  • You will canvass neighborhoods of interest and cold-call phone numbers on “for lease” signs.

  • You may reach out directly to developers with new projects in the pipeline about future opportunities that are not yet advertised (having heard about projects from the news or people in your network).

  • You are familiar with and comfortable negotiating the basic terms that will go into your retail lease.

  • You are willing to engage with local government agencies to identify programs that may offer support through your search, such as:

    • Neighborhood “Main Streets” programs (the City of Boston has 20 such Main Streets districts that aim to build and sustain healthy commercial districts)
    • Community/economic development departments
    • Neighborhood organizations in your targeted trade areas

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« Phase I: Planning + Outreach

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Phase III: Touring + Vetting Real Estate Opportunities »