"Professional" is the new designation for brokers: Like the industry, brokers must change with the times

When I came into the industry in 1975, I was with D'Angelo Forest. Bob Forest used to say to me, "There are two types of people who work in our industry-brokers and order takers." That was before we had many different forms of financing, environmental matters, new town codes and overseas competition, just to mention a few. Not to take anything away from the brokers of that time (including yours truly), but compared to today's brokers and what is required of them, they are as different as apples and oranges. For today's broker, the word "professional" commands a designation. It is no longer a case of, "Let's take a ride and look at a few buildings." Now, there is accountability; especially important if you want to distinguish yourself from every other broker. Today's best brokers differentiate themselves in many ways including taking the time to outline and supply their clients with comparisons of buildings and operating costs. Today's brokers must understand leases, construction, construction costs, zoning uses, etc. and have the ability to arrange meetings with various agencies, including the local IDA, utilities, towns and state agencies. Customers now rely on their broker's expertise to assist in the process of identifying real estate opportunities and helping the client make the right decision. In addition, today's broker is expected to take the process to the next level; that is to determine if there are any incentives available. Today's brokers also must possess the knowledge and understanding of how to assist in finalizing a transaction. That often requires being familiar with the environmental process, which includes helping a client select the right environmental company from an approved lender's list or recommending a viable resource. The role of the broker encompasses full coordination and fast tracking a project, and putting all of the pieces together. The environmental component has become a must. While it is particularly applicable to property sales, it is also advisable to have an environmental analysis conducted with most long term Industrial leases prior to occupancy. There are issues of elevated levels arising from a Phase 2 investigation and the follow through with the environmental company for the release of the "No Further Action Letter" from the county health department. Without this, there's no closing. A pre-lease signing environmental inspection provides the prospective tenant with a baseline and enables a landlord to remediate any problems uncovered. Once the lease is signed, the environment issues become the tenant's responsibility. Years ago, brokers were not concerned with overseas competition or companies being lured by states. It's a different story today and another reason why today's broker must perform at the top of his game. Today, states are going out of their way to offer very generous incentive packages to lure attractive businesses to their regions-particularly if company plans to create over 100 new jobs. In order for the customer to determine where to expand and relocate, the broker has to assist in evaluating the incentive programs, in addition to thinking outside the box and covering all options for the customer. For example, let say the broker represents a company that wants to expand to a new location. The broker should not only search out facilities, but also evaluate whether it makes financial sense to take another building by outlining the cost factors and providing a comparative analysis of the various options (e.g., new location or total move vs. additional location). Obviously, many factors have to be part of the equation (i.e.,, down time, moving expenses, set-up, etc., all depending on the type of business.) The list goes on and keeps changing. Brokers must be up to speed on every aspect of real estate to be a strong player in today's game and to keep pace with all of the various options. No doubt, in today's go-go world, the role of today's broker isn't what it used to be. We have become true professionals and are expected to perform like professionals. Stay tuned... Ralph Perna is an executive managing director at Newmark Grubb Knight Frank, Melville, N.Y.