Scott Bloom, Bloom Real Estate Group, commercial real estate professionals here in New York City.
The reason to hire a commercial real estate professional as your exclusive broker at least in the New York market is that as oppose to the residential system where it's going to cost you money for paying for their services, the landlord in almost all cases is actually paying a brokerage commission anyway.
When you look at these buildings and you see the leasing and managing agent, they are separate entity from the landlord in many cases and are getting paid anyway for serving the landlords purposes of getting the best deal for the landlord. You have the ability as a tenant in the market place to higher a broker as your exclusive representative without actually paying them a penny. It's not going to cost you any more money and the landlord will then pay a commission that is shared by both sides.
Just like you have a CPA handling your taxes professionally but you are paying for it. In this case you have somebody who is going to save you time and money most likely about 15% on your rent plus the time that you would spend trying to figure out the market every five ten years, have them on your side working for you, with you even though they are being paid by the other side.
Now, you may say that sounds like a conflict of interest. It is. The more pay in rent, the more they get paid, but that's how the system is set up. So, now that you understand that that's the case just like you wouldn't have, you wouldn't go into quarrels with the judge if they say they will give you a better deal if you don't have an attorney. Of course you would have your attorney representing. Well, this is the exact same thing, you might as well have a broker that's working with you, helping you even though they are paid by the other side.
Now, that you understand that simply choose who you feel will do the best job representing your interests.
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