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We expect you’ve arrived here looking for useful information about Industrial & Flex warehouse space. That’s our “thing” and we take it very seriously. We’ve been in operation since 2008…
The Texas (and other State’s) Real Estate Commission (TREC) exists to implement the state laws established around the practice of Real Estate. The state decided at some point - I used to know the date - that consumers need to be protected from fraud and ignorance in the most consequential transactions in which some folks will ever be involved. TREC has come a long way in simplifying what it thinks the consumer needs to know.
They require a lot of things, but some of the most important center around setting up a relationship with a Real Estate professional. They want you to know that until you have an agreed upon relationship with your Broker, you can not assume that they work for you because by statute, they do not. This doesn’t mean that they are allowed to lie to you - just that their duty is to provide their client with the best possible information, and that until you are their client, you need to assume their client is someone else.
They do a much better job of explaining it than I do with their Consumer Protection Notice, which talks about where to file a complaint, what recovery options are available to you as a consumer, and how to get more information. Add to that their Information About Brokerage Services document, which explains in detail the professionals you will be working with, the minimum duties of these professionals to their client, and more detail about the different ways a given Brokerage can represent you in your Real Estate transaction. This information is critical to you and to your understanding about who to trust and what to share. TREC requires all Real Estate professionals in Texas to provide this information to you BEFORE they conduct substantive discussions with you about your Real Estate needs.
There is a good deal of useful information on the TREC Web Site. You can investigate the licensing status of anyone you are considering using as your Real Estate professional, including complaints lodged against them. Most of it is aimed at the Real Estate professional, so you might well consider it pretty dry reading (not that a Real Estate professional doesn’t…).
Every state has rules set out for this situation. I haven’t reviewed the regulations of any other state in detail, but it is my understanding that all states regulate these transactions to some, and probably to a similar degree.
Overview
Many (most?) in the business world have no real need to understand the ins and outs of commercial real estate property types until they experience a need to expand or contract their business. My goal here is to take you briefly through my experience, converting my business experience into an understanding of the Industrial & Flex warehouse market.
Did you know that your relationship with your real estate broker is fairly similar to your relationship with your attorney? To be sure, there are significant differences - but there are also significant similarities. Of course, we all hope not to have (too) much of a relationship with an attorney - at least when it comes around to legal “troubles.” To judge by current trends in the technology industry, many of us feel the same way about real estate brokers. Is it better to be “cagey” about committing to a real estate broker, or is it better to take the plunge and commit to one?
Both attorneys AND real estate brokers (and their agents) are tightly regulated by the states (maybe al statesl, but I certainly it’s the case in Texas where I live and believe it applies broadly). They are both expected to be fiduciaries. Attorneys can take upon themselves broad fiduciary responsibilities as defined between themselves and their clients. A real estate broker is generally limited to fiduciary responsibilities in the area of real estate with an extended obligation to only engage in types of real estate in which they are knowledgable. An example would be an agent who has only handled residential suddenly representing themselves as experts of retail or office properties.
In most areas of your life, you can walk around and conduct business for yourself - buy a hot dog, rent a car, etc., etc. There may be rules those you deal with have to follow and prescribed rules around the transactions, but in most cases you have to look out for yourself - buyer beware and all that. In the real estate industry, buyer (and seller) beware applies as well, but the states I know about have decided that you will in most cases have a real estate professional helping to look out for your interests. Yes, you read that right - in most cases, it is strongly encouraged (not quite required) that a primary party to a real estate transaction employs the services of a real estate professional. If you’re wealthy, there are some ways around it that might save you money, but given the way most real estate regulations are structured, you should really be asking yourself why would I try to do it without a broker in my corner? The transaction fees required for their involvement are generally already built into most real estate transactions.
This would be a long list if I were to list them all - I’ll list a few from various sources including the Texas Administrative Code, the rules of the Texas Real Estate Commission (TREC), and other sources for your consideration. A licensee must:
This list could go on and on, and is highly specific to cases that have been encountered in any given state. If the above list isn’t enough, let me add a kicker that might push you over the edge. If you can prove the broker you hired isn’t what your real estate commission says he/she must be or doesn’t do the things your real estate commissions says he/she must do, that real estate commission has the teeth to enforce the rules they set out by force of law. In TEXAS, TREC maintains a fund collected from licensees to make certain that they can make settlements should they decide there were violations that warrant settlements.
In layman’s terms, find a qualified broker with good communication skills and work with them exclusively. They will put in the time and effort using their resources to find, or sell/lease the property you want. Let them do the work while you manage your business and personal life.
There are probably no real downsides to using the right “qualified” broker to represent you. However, we can touch upon why you want to be careful in your selection. The following is an attempt at a list - which I expect to improve and enhance over time:
When I was pursuing my license originally here in Texas, I was amazed to see the detail with which TREC describes their expectations for ethical behavior, and for the behaviors they expect in general. Not to brag (well, maybe), but it was not all that difficult for me since the bulk of it was how I strive to do business in any case. Evidently there must be people out there who need a lot of help, guidance, and at least a little enforcement - because the states decided that this industry, along with a few others, requires fairly tight regulation. Please seriously consider willingly letting a broker take you under his/her wing and help you through what tends to be a fairly complex business transaction - sooner rather than later!
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A good while ago - if interested, you can likely tell how long by the dates of some of the posts - I began this journey of creating a web site for commercial real estate seekers. I hoped to fill the site with as much useful information as I could manage. Four or five other web sites under my belt later and I’m back to reassess and push forward. Finally taking the time to finish off the links to nation-wide Real Estate Commissions (however they are named) seems like a great thing to talk about at least briefly - not to mention an excellent way to tell our users about some of the techniques for finding this type of information on our site.
The first thing to know - and if you are reading this you already know 1 way to find this article - it’s the FINDthisSPACE web site Articles and Links structure. Posts on our site are one of two things (so far) - 1) a BLOG Post like this one, and 2) a Link to useful information elsewhere on the web. In both cases, you can view the summary of all Posts, or Articles and Links on our Articles and Links page here. On this page, you’ll find all of them listed in chronological order with “sticky” articles we feel we need to prioritize at the top. If you just want to browse, this is probably where you want to be.
For those of you who want to find information faster, we’ve provided a few ways to narrow things down. We’ve provided:
At this point, all the Real Estate Commission Links/Synopses are Tagged with Consumer Advocacy and State Regulations (I may use more tags as we go along on these). If you see one of these Tags under a synopsis on the BLOG page, you can click on that Tag and it will narrow (filter) the BLOG page by Tag - which I’m calling “tagify.” These links are also available on the BLOG Post/Article page (accessed under News and Info - the Articles & Links (A&L) link) after the article. These links work the same. Note that these Place Tags aren’t links yet - I’m working on that.
As implied above, Place Tags are still under development. They have a good deal of potential. Right now, the best way to get to the state you want without browsing the entire set of posts is to use the “By Metro” under News and Info. Click on your state, and then on any of the Metro areas within that state to get the one you want. Anything Place-tagged with a state will appear with that filter.
The last is the Commercial Real Estate type flag. This, too, is under continued development, but as of now it works as you might expect. There’s not a lot of content currently that requires this filter, but I expect that to change over time.
If you end up finding these tags (filters) useful, you may also want to register with our site. Each of these tag types have their own saving mechanism, as do BLOG Posts themselves.
Thanks for having a look and check back often!
This is the official web site of the Puerto Rico Real Estate regulating body - the Puerto Rico Department of State - Real Estate Brokers, Sellers and Businesses. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the West Virginia Real Estate regulating body - the West Virginia Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Washington State Real Estate regulating body - the Washington State Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Alaska Real Estate regulating body - the Alaska Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Vermont Real Estate regulating body - the Vermont Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Utah Real Estate regulating body - the Utah Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Tennessee Real Estate regulating body - the Tennessee Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the South Dakota Real Estate regulating body - the South Dakota Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Rhode Island Real Estate regulating body - the Rhode Island Department of Business Reguation - Real Estate. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Pennsylvania Real Estate regulating body - the Pennsylvania State Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the Ohio Real Estate regulating body - the Ohio Department of Commerce - Real Estate & Professional Licensing. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the North Dakota Real Estate regulating body - the North Dakota Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the North Carolina Real Estate regulating body - the North Carolina Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the New Jersey Real Estate regulating body - the New Jersey Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
This is the official web site of the New Hampshire Real Estate regulating body - the New Hampshire Real Estate Commission. If you are a prospective or actual buyer or lessee, this is where you can go to learn about what you can and should expect out of the players in your real estate transaction. You can learn about the agents and brokers involved - whether or not their licenses are active (they MUST be for them to deal with you) - and whether or not they have or have had disciplinary action against them. If you are I would suggest that you browse the site just a bit to make sure you know what is there that might be useful to you. Bon apetit.
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