Access to deep resources critical to success for today's broker

The role of the commercial real estate broker has evolved considerably from the days of the one-off transaction to become deeply consultative in nature. As such, it is more important than ever for industry professionals to truly understand client needs and have access to a wide variety of resources to help meet them. The Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area is rising to the occasion. In the past, it was most important for a broker to know which landlords were offering the biggest concession packages. We could simply call a company and tell them about various opportunities, and that knowledge alone could win us the business. Today, limited new construction, lower vacancy factors and the extinction of big concessions have changed our world. Real estate today represents some 8 to 15 percent of a company's annual expenditure. Landlords can no longer afford to provide turnkey installations due to increased commodities and construction costs. Frequently, tenants that relocate are required to pay $20 to $50 per s/f out of their own pockets toward build-outs. Additionally, the average cost to move has increased 30 to 45 percent over the past decade. In other words, the stakes are higher and decisions more complicated than ever before. Any savings goes right to the bottom line. As a result, tenants are taking a much closer look at all aspects of their real estate expenditures. As brokers, our knowledge has become important in helping clients understand the potential costs and preparing a budget for a move, expansion or construction. Companies more and more are turning to their real estate service providers to help them maximize cost efficiency. Therefore, today's broker must possess deep knowledge, experience and connections. The most successful broker/consultants are helping their clients create budgets to examine the cost to move vs. renew in place and are analyzing all variables in the real estate process to help achieve the most forward-thinking, cost-effective solutions. Brokers today are negotiating state incentive packages. We are bringing to the table teams of architects, mechanical/electrical engineers, project managers, expeditors, environmental consultants, energy brokers and consultants, LEED specialists, attorneys, general contractors, furniture vendors and liquidators, telephone consultants, moving companies, and relocation specialists. We are intricately involved in helping clients define the scope of work with vendors and negotiate the associated fees. Strong alliances with these service providers have become a critical tool. Some brokerage firms have developed in-house specialty groups to assist with the process. Cushman & Wakefield, for example, has professionals that focus on data center/mission-critical space, law/professional services, call centers, non-profits, hospitals and medical centers, and healthcare and insurance, to name a few. The professionals who work in these areas know the language, specific lease and financial issues, and the technical nature of build outs in their sector. Those of us who work for large, diversified brokerage firms benefit significantly in this area from deep in-house resources. At Cushman & Wakefield, we have an energy consultant to help our clients buy their power on a more competitive basis. If a client is interested in relocating, we can perform demographic analyses. We offer a global supply chain management service for industrial users. If a client is merging, consolidating or looking to expand operations, we can help with strategic planning. We help companies look at their portfolios and improve performance by reducing costs, increasing revenue and mitigating risk. All of these exercises typically get done before a real estate requirement is even generated. The consultative nature of these services gets us in the door proactively. Whatever recommendation we are in the position to make we are also in the position to help execute. However, not all brokers have this level of in-house access to resources, and the current officers of IOREBA recognize this reality. We also recognize that our associate members - be they property managers, finance professionals, architects, attorneys, furniture dealers, interior designers and other service providers related to real estate - provide a wide variety of specialized services that can help. We are working hard to make this association a valuable resource for the commercial real estate industry. As part of this effort, we are in the planning stages for the development of a one-stop, web-based forum for contacts and information. This resource "library" will feature an online directory where members and associate members can tap into other individuals or companies that offer a specific, real estate-related expertise. As more companies recognize the value of brokers as strategic advisors, our role will continue to evolve. Those of us who have access to the resources that can help us foster consultative relationships will be best positioned to succeed. IOREBA is committed to providing this opportunity. Sean Brady is a senior director at Cushman & Wakefield, Inc. in East Rutherford, N.J. and secretary for IOREBA.