Boutique CRE Firm vs National CRE Firm
June 28, 2023
When looking for commercial properties, you cannot do it alone. Even if you have a real estate agent at your side, you will need someone to help you with the property documents and buying process. Working with a commercial real estate firm can make a huge difference to the type of properties you look at and the ones you eventually purchase. The focus right now is on commercial real estate and there are several CRE firms in the market. However, before you contact the first firm that comes your way, understand the difference between the two most common types of CRE firms: Boutique and National.
What is a Boutique CRE Firm?
A boutique CRE firm is a commercial real estate company that offers multiple listing service representation that is very similar to larger companies. This means all companies have access to the same properties as a buyer or seller. A boutique does not mean it is too small or caters to too large clients, it is a very specialized business that brings thorough professionalism and expertise to the table.
The firms use technology that is available to both boutique firms and large companies. They work just like online marketing companies do, by representing some of the top buying and selling sites. Lastly, they specialize in their marketing more than large firms do.
What is a National CRE Firm?
A national CRE investment firm provides research-based services to clients. However, their service is not specialized and caters to all buyers and sellers in a very generalized manner. They do not offer specialized services since it is a large company and has big clients. This also means they do not have in-depth knowledge of the local market and trends.
National CRE firms have large offices and a presence across multiple cities but if you seek a personalized experience, it may not be the right one for you.
Benefits of Working with a Boutique Commercial Real Estate Firm
While both boutique and national CRE firms do the same job, there are a few benefits of working with a boutique commercial real estate firm. Let’s take a look at them below.
Local Knowledge of the market and partners
When you work with a boutique CRE firm, the team has local knowledge of the market and its partners. They cater to a small area and have specialized knowledge which means they will know all about the regulations, the local economy, the neighborhood, inspectors, and contractors. They will be able to answer all your questions with ease.
Smaller, Nimble, Fast Acting Collaborative Teams
A boutique commercial real estate firm will have small, close-knit teams which are more in sync and can deliver solid results. The team works in coordination with one another and they have the right contacts in the market, making the process much easier and quicker for you.
Specialization on CRE Asset Types
One solid reason to work with boutique firms is their specialization in the CRE asset types. They are aware of the different asset classes and their trend in the industry. Based on this, they focus on certain asset types and know them the best. So, if you are looking for a specific CRE asset, you know whom to contact.
Quality of Investments
Investors want the most out of their investment and when you work with a boutique firm, you enjoy higher quality of investments. There is a lot more expertise and care included in each investment since there is less focus on the volume or the number of clients. They always place quality over quantity.
Benefits of Working with a National Commercial Real Estate Firm
Working with a National commercial real estate firm is not bad either. It also brings several advantages. Let’s consider them.
Network of National Offices & Investors
As mentioned above, a National CRE firm will have a national presence and several offices within the city as well as across the state. This allows each office and team to focus on their local area. National firms have a national presence that helps grow their business.
Access to Macro CRE Trends
Since National CRE firms have a national presence and a vast portfolio, they also have an extensive transaction history which gives them access to insights and data on the global market. They understand macro trends and recommend properties accordingly. For them, it is more global than local.
This could be considered a drawback of working with a national CRE firm. With larger teams and broader experience, there is a complexity to the deals made. The companies also need to adhere to the local and state laws while making deals and it could become a tedious process.
If you are in the market looking for a commercial real estate property in a specific area, consider working with a boutique firm to enjoy a quick and stress-free buying process. Their knowledge and expertise can make real estate investment effortless.