Independent Real Estate Brokerage Firms in NYC: What the Word Tells a Tenant

What 'independent' means, and what the word leaves unsaid

The word is about ownership. The firm belongs to its principals, makes its own decisions and is not a branch or a franchise of a national brand. That is all it tells you.

It says nothing by itself about conflicts. An independent firm may lease buildings for owners as well as search for tenants, and if one of those buildings suits you, the same firm is on both sides. So ask an independent firm what you would ask a large one: which buildings it leases for owners, and how you would be told.

What an established small business gains, and what it should check

The gains are real. A senior broker usually runs the search personally, and the firm tends to know a handful of neighborhoods building by building. For a ten-person practice or a family company, that attention is worth a great deal.

Three things deserve a check, because a small firm has fewer people behind each broker.

• Research depth. Ask where its rent comparisons come from and how recent they are.
• Capacity. Ask how many searches your broker is carrying and who covers when they are away.
• How comparables are built. Ask to see how the firm would support a rent recommendation: which deals, in which buildings, adjusted how.

Does a small office need a broker? The paperwork does not shrink

You can lease without one. But a small lease is not a simple lease. A 2,500 square foot floor comes with the same personal guarantee question, the same annual escalations, the same deposit negotiation and the same duty to restore the space as a far larger one. And a small business, once it has signed, is in a weak position to reopen a clause. Since in most transactions the landlord pays the broker fee, representation rarely adds to a tenant's costs. Our brokerage page describes the work involved.

Five things a small business should have ready before contacting a firm

• Headcount, including anyone you expect to add.
• The date: when your current lease ends, or when you need to be in.
• A monthly budget.
• Neighborhoods, chosen by how your staff commute.
• Must-haves, such as private offices, a reception area or storage.

On neighborhoods, the floors below are in Penn Plaza for a reason. Staff who ride the LIRR or NJ Transit arrive at Penn Station, the 1/2/3 and the A/C/E stop there too, and the area is well priced for that access. It is the kind of space a small business with commuting staff tends to tour, and the Penn Plaza guide describes it.

How Nomad answers the questions an independent firm should be asked

Nomad Property Group, a licensed New York real estate broker, has its office at 276 Fifth Avenue, Suite 402. On a tenant's search it works for the tenant. It also offers agency leasing and owner representation, so the conflict question applies to it too. The paperwork question applies as well: ask what you would be signing, and for how long. The tenant representation agreement explains what any firm's paperwork should say before you sign it.