65 – Beware the Dual Agent – It May Cost You Dearly $$$$

Good morning and welcome to Episode 65 of The LeaseSmart Commercial Real Estate Podcast, brought to you by LeaseSmart.com. Your host is Craig Melby, the founder of LeaseSmart, whose objective is to find companies the best facilities and get them the best terms, making their business more profitable and less vulnerable to future, unpredictable circumstances.

In this Friday’s episode Craig Melby welcomes guest Mike Sowinski with CFO Consultants to discuss a major news story regarding real estate.

Check this out: Mattress Firm is accusing Atlanta-based commercial real estate broker Colliers International of a real estate scheme of fraud and kickbacks affecting more than 800 stores nationwide.

How did this happen? There was a relationship break-down. Mattress Firm thought they had good tenant representatives but those executives were actually serving their own interests.

Here’s how it could happen: If you pay even just a couple more dollars per square foot, that adds up big time. So if your broker isn’t getting you a $25 per square foot deal because they quickly agree to you paying $28 per square foot, they make a lot more money and the you won’t realize what just happened. Similarly, if they negotiate a 15 year lease for you instead of a 5 year lease, it ends up being a much bigger deal/higher commission than it needed to be.

How can you avoid a bad deal? An honest third party can spot the rat. Find someone who can pay this role in the process.

In our system here in the US we don’t see bribes and kickbacks as ethical. It’s a matter of personal honesty. Make sure you’re dealing with people who value ethics like you do, and get a third party representative involved to help keep everyone acting fairly.

Craig can be reached at 800-962-2419 and craigmelby@leasesmart.com.

Have a fantastic day!

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Questions about YOUR lease? Feel free to contact us for a complementary consultation to decide how we can help your company grow and prosper.

Craig Melby, CCIM, Founder
(800) 640-9141 CraigMelby@LeaseSmart.com
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