How to Choose the Right Commercial Real Estate Agent

Choosing a commercial real estate agent is a big decision. Unlike residential real estate, commercial properties are often long-held investments with significant equity, tax considerations, and long-term income implications.

Owners sometimes assume the right agent is simply the one with the most transactions or the highest price opinion. In my experience working with multifamily owners in the South Bay, those factors alone rarely lead to the best outcome.

Here are a few things I encourage owners to consider when deciding who should represent one of their most valuable assets.

Don’t Choose an Agent Based on the Highest Price

One of the most common mistakes I see is owners selecting an agent based on the highest price estimate.

It’s understandable. If you’ve owned a property for years — especially in strong markets like Hermosa Beach, Redondo Beach, or Manhattan Beach — you know how valuable it is.

Naturally, the broker who says they can get the most may sound appealing.

But price without a strategy often leads to a stale listing.

Commercial buyers are highly informed. They track cap rates, rent levels, renovation costs, and comparable sales closely. When a property is priced far outside what the numbers support, serious buyers tend to wait.

Over time, the listing sits, price reductions follow, and the seller may end up negotiating from a weaker position.

A better approach is choosing an agent who can explain:

• Who the likely buyers are

• How those buyers evaluate the property

• How pricing strategy can create competition

  
  

The goal isn’t just listing at the highest number — it’s positioning the property so multiple qualified buyers want it at the same time.

Look for Someone Who Thinks Like an Owner

One perspective I bring to clients is that I’m a property owner myself.

That means I tend to approach these conversations differently. Instead of focusing only on the transaction, I ask the same questions many owners are asking themselves:

• Is this the right time to sell or hold?

• What will I actually walk away with after taxes?

• What would I reinvest the equity into?

• Will the next investment perform better than the one I already own?

  
  

Many South Bay owners have held properties for decades. They may have a very low tax basis, strong locations, and steady income. Selling isn’t always the obvious choice.

Often the real question isn’t simply “What is my property worth?”

It’s “What would I do with the equity if I sold?”

Sometimes selling is the right move. Sometimes holding, renovating, or refinancing may make more sense. The right advisor should be comfortable exploring all of those possibilities.

A Real Example: When the Right Move Was Diversification

A recent example illustrates how these decisions can evolve.

A client inherited a multifamily property worth roughly $9 million. It was a great asset in a strong location, and the initial instinct was to simply hold it.

But when we talked through their long-term goals, it became clear that the property represented nearly all of their wealth in a single asset, and it still required active management.

They were approaching retirement and wanted the freedom to travel more.

Instead of holding the building indefinitely, they completed a 1031 exchange into three net-leased properties.

The outcome gave them:

• Diversification across multiple properties

• Long-term tenants responsible for operations

• Stable income with minimal management

Today they’ve essentially retired from active property management and spend much of their time traveling. They also have flexibility to sell or exchange those properties one at a time, rather than having everything tied to a single building.

For them, the best decision wasn’t simply holding a good property forever. It was aligning their real estate strategy with the life they wanted to live.

Pay Attention to the Questions an Agent Asks

Another way to evaluate a commercial real estate agent is by the questions they ask you in the first meeting.

A thoughtful advisor should spend more time understanding your situation than pitching themselves.

Some of the questions I typically ask owners include:

Why are you considering selling now? Understanding the timing helps shape the right strategy. The reason might be retirement, estate planning, partnership changes, or reinvestment opportunities.

Who else has decision-making authority? Many commercial properties involve partners, trusts, or family members. Identifying all stakeholders early prevents complications later in the process.

Who else have you interviewed? Most owners speak with multiple brokers. That’s healthy. It also helps clarify different pricing expectations and strategies.

What are you hoping to achieve? Sometimes the goal is maximizing price. Other times it’s simplifying life, reducing management, or repositioning equity into a different type of investment.

Understanding the objective shapes everything that follows.

In Commercial Real Estate, Comps Often Have a Story

Comparable sales are an important reference point in commercial real estate. But something many owners don’t realize is that comps often have context behind them.

Sometimes a sale looks like it reset the market when the reality is more nuanced.

For example:

• A buyer may pay a record price because they need to place 1031 exchange money quickly.

• A local investor may overpay because they own the neighboring property and have a strategy that only works for them.

• A buyer may accept a lower return because they plan to redevelop the property.

If you only look at the headline number — price per unit or cap rate — it can create unrealistic expectations.

In markets like the South Bay, many transactions involve local relationships and unique property histories. Understanding the story behind those sales can be just as important as knowing the numbers themselves.

The Bottom Line

Choosing the right commercial real estate agent isn’t just about who has closed the most deals or who promises the highest price.

It’s about working with someone who:

• Understands the local market deeply

• Looks at the property from an ownership perspective

• Asks thoughtful questions about your goals

• And helps you evaluate not just the sale — but what comes next.

For many owners, a property represents decades of work and a significant portion of their financial future. The right advisor should approach that responsibility with the same care they would give their own investment.

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