What To Look For In Commercial Real Estate Partnerships

You’ve probably heard it before, so it should be no surprise when you are told to be careful of the company you keep. As with any relationship, friendship, or partnership, make certain you choose wisely who you partner with when purchasing commercial real estate, or selecting a commercial real estate management company to represent you. If you don’t, you may be headed for bigger problems later.

A commercial real estate partnership should be based on trust, have a high amount of integrity, and have a common goal. Here are some of the things to look for when selecting a commercial real estate investment partner and/or a commercial real estate management team:

DO think about who you wish to partner with. Do you trust them? Do you know their history? Do they have your back? Are they reliable and have strong character? What are they like when faced with conflict? It is important to consider these things before selecting a partner.

DO make sure you have the same vision for your commercial real estate and how it should be managed. If your vision skews off track with each other, how will you resolve it to make certain you get back on track?

DO draw clear lines about what is expected, who is doing what, who is paying for what, and what happens to the profits. Clear lines draw the line in the sand about what is right and what isn’t. Setting boundaries in the beginning is important. Blurred lines can be ugly when it comes to “letting things slip” with commercial real estate partnerships and management teams.

DO define the roles of each commercial real estate partner. It is best to determine the strengths of each partner before giving someone a title. A commercial real estate management team often has a clear role for each team member, and it is a good practice to learn the role of each person to lessen confusion or miscommunication.

DO clearly communicate with your commercial real estate partners and management teams. Lack of communication can be your downfall and it could affect the ROI of your commercial property, or upset your commercial real estate tenants.

DO ALWAYS get things in writing. This will make sure everyone is aware of expectations, plus it will help you in a court of law.

DO verify all the information you’ve been given. DON’T always take everything at face value.

DO take a close look at the financials of your commercial real estate partnerships, including property managers, investors, tenants, contractors, etc. You will feel more confident that everyone is in good standing.

Want to know what makes CMG special and unique in the world of commercial real estate partnerships and commercial real estate management? We own several commercial properties ourselves and we know what to look for in commercial real estate deals. Plus, the CMG team will do whatever it takes to earn the trust and respect of our customers, vendors, investors, and business community. When you choose CMG, you can rest comfortably with the knowledge that all of your commercial real estate partnerships and commercial real estate management needs are in the hands of seasoned professionals.

Contact Jim Provost and the CMG team today to schedule a free consultation to discuss your commercial real estate management needs:  707.575.5500.