15 Questions to Ask a Commercial Real Estate Broker

Our guide to choosing a broker explains what to look for in a firm. This one is the interview itself. Each question below comes with a description of a good answer, because the question alone does not help much if every candidate says yes.

1. Interview more than one firm, and include different kinds of firms.
2. Send the questions in advance. Prepared answers are more useful than improvised ones.
3. Ask the people who would do the work to attend, not only the person who sells.
4. Take notes on specifics: names, steps, documents and examples.
5. Ask each firm for references and call them.
6. Read the representation agreement before you decide, and have your attorney review it.

Across all fifteen, listen for the same qualities. Good answers are concrete, describe a process, and include an honest limit or two. Weak answers are general, flatter you and avoid anything that could be checked later.

• ✓1. Who is your client in this transaction, and will you put that in writing? A good answer: "You are, and here is the agreement that says so," offered without hesitation.
• ✓2. Does your firm list, manage or own any building we might consider, and what happens if we like one of them? A good answer names the firm’s landlord relationships plainly, or states that it has none, and explains the exact procedure and paperwork if a conflict arises.
• ✓3. How are you paid on this deal, by whom, and will you show us what each building is offering? A good answer explains the commission arrangement in plain terms, covers the cases that differ, such as subleases or purchases, and commits to disclosing any bonus or incentive a landlord offers brokers.
• ✓4. Does your pay change depending on which option we pick, including if we renew or sign a short term? A good answer admits that fees usually vary with the size and length of a lease, and then explains how the broker keeps that from shaping its advice.

Question 4 is the one most candidates would prefer to skip. A broker who says compensation never differs between options is either unusual or not being candid. The answer you want acknowledges the incentive and describes a safeguard, such as presenting every option with its full economics so you can see the reasoning.

• ✓5. Who will run our search day to day, and how much of their time will we get? A good answer names the individuals, has them in the room, and describes who attends tours, who drafts proposals and who negotiates.
• ✓6. Which companies like ours have you represented, and may we call two of them? A good answer offers clients of similar size and type, such as technology, software or data firms, and gives contact details readily.
• ✓7. Tell us about a deal that went badly or fell apart, and what you did. A good answer is a real story with a specific problem, a specific response and a lesson. Every active broker has one.
• ✓8. What do you know about the technical needs of a company like ours, and where does your knowledge stop? A good answer covers the questions to raise with a landlord about power, cooling, connectivity, access and security, and says clearly that engineers and IT specialists must verify the answers.

On question 8, be wary of a broker who claims expertise in everything. Leasing an office for an AI company involves engineering questions that a broker should know how to ask and should not pretend to answer alone. Knowing where to bring in an engineer, an architect or an attorney is a sign of experience.

• ✓9. Where does your information on available space come from, beyond the listing databases? A good answer describes direct contact with owners and other brokers, knowledge of space that tenants are quietly trying to shed, and how often the survey is refreshed.
• ✓10. How will you create competition for our tenancy, including if we would prefer to stay where we are? A good answer describes sending the requirement to several landlords at once, comparing written proposals, and testing the market early enough that moving is a real alternative.
• ✓11. How will you compare proposals for us? A good answer is a consistent financial analysis of every option over the full term, including concessions, operating costs and build-out exposure, shown beside the non-financial terms.
• ✓12. Which lease terms matter most for a company with our growth profile, and how have you negotiated them? A good answer goes straight to flexibility: expansion, sublease and assignment, changes in ownership, security that reduces over time. It includes an example and a description of how the broker works with the tenant’s attorney.

Question 10 doubles as a test of independence. A broker who is comfortable recommending that you stay put, after testing the market, is advising you. A broker who only gets animated about moving may be advising the fee.

• ✓13. What does your representation agreement commit us to, and how do we end it if this is not working? A good answer walks through the term, the scope and the termination clause without defensiveness, and invites your attorney to review it.
• ✓14. What do you do after the lease is signed? A good answer covers the build-out and move, tracking of notice dates and option deadlines, and help with later needs such as subleasing excess space or reviewing an operating expense statement.
• ✓15. What will you need from us, and what would make you tell us not to do a deal? A good answer lists what the client must provide, such as a headcount plan, a budget and a decision-maker, and gives a real example of advising a client to wait, renew or walk away.

The second half of question 15 is the most revealing on the list. An adviser is someone who will sometimes tell you no. If a broker cannot recall ever doing so, take that into account.

After the interviews, compare notes against a short set of warning signs.

• Vague answers about who the client is or how the firm is paid.
• A senior person who sells and then is not mentioned again in the description of the work.
• Enthusiasm for one building before your requirements have been discussed.
• No references of a similar size or type, or reluctance to share them.
• Pressure to sign a representation agreement before you have read it.
• Claims of results stated as guarantees.
• Dismissal of other kinds of firms instead of a fair description of the trade-offs.

The right choice depends on your requirement. A large firm with offices in many cities, a regional firm and a tenant-only boutique can each be a good answer for a particular company. TAG is a tenant and buyer representation firm, and we are glad to answer all fifteen of these questions in writing. We would encourage you to ask them of every firm you interview, including ours.