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9/03/08
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(Los Angeles, CA) – With the current decline in the economy, especially in the real estate sector, commercial real estate brokers are feeling the crunch. In the Los Angeles area there is roughly 4.7 billion square feet of property available for leasing, however brokers are taking home smaller commissions due to a number of factors. In this down market there is some good news to report: Brokers and building owners have an opportunity to make up for shortfalls in their revenue stream by providing leasing clients the added value benefit of facilitating the transfer of telecommunications services. By offering clients this additional service, brokers have the potential to earn up to 10 to 20 percent more in commissions and save their clients money as well.
As opposed to the late 90’s when competitive carriers tied up owners by rushing to wire-up office buildings, this utilization pays with existing infrastructure and requires no additional and/or potential unnecessary wiring. Brokers can provide this service to their clients in a seamless fashion through a new program offered by various telecommunications service providers. These service providers are like brokers that negotiate the best pricing from AT&T, Verizon and other carriers for clients when relocating to new office space. Once the client makes a decision regarding new services, the telecommunications program consultant then works with the chosen carrier to ensure that installation is completed in a timely manner and on budget.
The full scope of additional services real estate brokers can offer their leasing clients include:
• Single point of contact – no more “on hold with the phone company”
• Accountability for analysis of existing services and review of options for the new space
• Negotiating a better price from the selected carrier
• Coordinating the client’s existing voice and data vendors or finding new sources
• On-going service post move-in, providing client with industry updates and innovations
“Being able to provide additional services to my clients, such as help with their telecommunication needs helps to streamline the deal. It just makes everything simple,” said Todd Wuschnig of Charles Dunn Brokerage. Typically, brokers earn about $4,000 in commission on a three year, 3,000 square foot lease of office space at the $2.50 per square foot rental rate. By offering to connect their leasing client with a telecommunications service provider, the broker can earn an average of 18 percent more in commissions on a three year lease and save the client an average $9,000 over three years, which equates to more than eight cents a square foot monthly in savings.
“We know which promotions to ask for and can save clients thousands of dollars and hours of precious time that they would otherwise spend trying to navigate this process themselves,” said Doug McMillan, president of OfficeRelo.net and a 17 year veteran of the telecommunications industry.
These programs are offered nationally to brokers in all 50 states. A partial list of regional and national brokerage firms currently working with telecommunications solution providers include CBRE, Voit, Lee & Associates, Cushman Wakefield, Charles Dunn and Beitler.
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