real estate
THE DOWNSIDE
OF DOING COMMERCIAL REAL ESTATE YOURSELF
by Zayd Najjar , DDS
Are you one of the rare healthcare providers or administrators who understands how much is at stake in commercial real estate negotiations ? If so , then you probably know that commercial real estate is the highest negotiable expense for your healthcare practice . Let ’ s break down several reasons why doing commercial real estate without representation will likely cost you a significant amount of time and money .
Time . The average commercial real estate transaction takes dozens of hours to complete . When you calculate the hours of research , driving the market , communicating with listing agents , touring properties , negotiating letters of intent ( LOI ’ s ), negotiating lease contract terms , printing / signing / mailing documents , and the dozens of other miscellaneous tasks you encounter , you can easily spend 30-40 hours or more on a single transaction . That equates to an entire week of work !
Given the fact you have a full-time job already , you have two options as to where you will find those hours :
1 ) During normal business hours ( when you could otherwise be generating revenue ) or
2 ) During your valuable time off that would normally be spent with your family , relaxing , taking care of personal errands or making memories with those you love .
Since time is a commodity you cannot get back , it ’ s important it be invested where it can yield you the highest return .
Money . The average healthcare practice loses tens of thousands of dollars in this ‘ do-it-yourself ’ approach .
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NORTH TEXAS DENTISTRY | www . northtexasdentistry . com
In the vast majority of commercial real estate transactions , you will be working with a listing agent . That agent has a fiduciary responsibility ( legal obligation ) to the landlord to ensure they get the best possible deal and that their interests are protected and paramount over any other party in the transaction .
This is also the person who actually collects a commission on