The DIY Trap: Why You Need a Broker When Buying or Leasing Commercial Property

There’s an adage that cuts across a wide swath of life’s challenges: “Never Go It Alone.”

Whether it’s making a court appearance without a lawyer, undergoing an IRS audit without a tax accountant, or hiking an unfamiliar and challenging trail without a guide, “going it alone” can often be needlessly perilous. The same logic applies when it comes to renting or leasing commercial property for your business.

It’s not uncommon for successful business owners to assume that their entrepreneurial skills will naturally translate into sound real estate decisions. The truth is that what you don’t know can have long-term consequences for your bottom line. Real estate expenses are the second-largest line item (behind labor) for most businesses, so finding a property that works best for your business involves far more than a walkthrough and a handshake from the property owner. Such a sizable investment requires a sophisticated analysis of long-term costs and potential pitfalls that brokers are uniquely trained to uncover.

Tech Platforms are Useful, But…

Platforms that allow businesses to lease or acquire property online are becoming increasingly popular. While these digital tools are invaluable for gauging the market and prospecting for space, they’re limited in their scope. These platforms can show you a floor plan, an asking price, and broad demographic data; however, they cannot share the type of inside information that a broker with “boots on the ground” can convey.

Before we delve into the benefits brokers provide, we should address a misconception that prevents business owners from enlisting their services: the belief that businesses can save money by avoiding broker fees. In commercial real estate (CRE), the property owner (seller or landlord) pays the broker’s fees, so there is no financial incentive for you to “go it alone.” Searching for and leasing industrial space is time-consuming and can divert your attention from core business activities. A broker’s sole job is to identify a property to lease or acquire that best suits their clients’ needs. It should also be noted that successful brokers are less interested in the short-term gains of a one-off transaction and far more interested in building long-term relationships with their clients and within the industry they serve.

Below are some of the advantages of using a broker versus the DIY approach:

Deep Market Knowledge

CRE brokers possess in-depth knowledge of the local real estate market, either through years of direct personal experience in that specific market or by being part of a senior-led sales or leasing team. While online platforms post listings generated by property owners’ marketing departments, brokers have access to inside information on buildings, submarkets, and individual landlords through their extensive industry networks.

For instance, while online platforms often list asking rents, brokers have access to comparable listings (“comps”) through CRE data providers like CoStar, CREXi, and CompStak, which provide the verified leasing rates of similar properties in a submarket to determine the fair market value of a space. For businesses or investors seeking to acquire properties, online platforms don’t list off-market properties that brokers are often aware of through their extensive networks. Leveraging these connections can provide business owners with access to a wider range of properties and opportunities.

Landlord Solvency and Market Timing

A broker’s experience also provides insight into a property owner’s reputation and financial health. Not all landlords are responsive to tenants’ needs, and if your company is entering into a long-term lease, that’s critical information. With CRE debt maturities set to peak in 2026, the risk of a landlord being “underwater” on their loan is a significant concern for prospective tenants. Landlords struggling to refinance may lack the capital to maintain buildings or meet tenant improvement (TI) obligations. In this economic environment, the thorough due diligence provided by an experienced broker is more crucial than ever.

Regulatory, Physical, and Environmental Due Diligence

Another factor to consider is the due diligence on a property’s location, including local regulations and zoning. Business owners need to be aware of zoning laws, building codes, and environmental compliance requirements that could hinder their ability to operate the business in the space they’ve leased or acquired.

Zoning and Use Restrictions

Every municipality has a unique set of “permitted uses” and “conditional uses.” Brokers understand the nuances of local zoning boards and can determine whether your specific operation — whether it involves heavy machinery, chemical storage, or high-volume retail traffic, etc. — is actually allowed. They can also flag “use restrictions” in the building’s master deed that a digital listing would most likely not include.

Parking, Access, and Infrastructure

For many businesses, what appears to be a “perfect” building won’t work if it has inadequate parking ratios, a poor “turnaround” radius for delivery trucks, or insufficient electrical power. Local brokers understand a submarket’s physical characteristics. They can research which streets have weight limits that hinder logistics or which buildings have outdated infrastructure that will require a costly upgrade before you can begin operations.

Negotiating Skills

Business owners who choose a DIY approach should be mindful that, as tenants or buyers without broker representation, they are at a distinct disadvantage. While many business owners possess strong negotiating skills, they will face the experienced representation of landlords and property owners. Using a broker protects your interests throughout the negotiation process. They understand the complexities of lease terms, including rent escalation clauses, tenant improvements, extracting concessions, optimal lease duration, renewal options, maintenance responsibilities, and structuring deals that support your operational and financial goals.

Brokers Are Insurance Policies for Success

At the end of the day, a commercial lease or purchase is more than just a real estate transaction; it is often a long-term partnership that can benefit your company’s operational flexibility and financial health for years to come. While it is tempting to believe that digital tools and entrepreneurial intuition are enough to navigate this landscape, the stakes are too high for a DIY approach.

As the old adage warns, you should never go it alone. In an arena where landlords have professional representation, and the fine print often favors them, you deserve an expert whose primary loyalty is to your business success. A broker ensures your interests always come first.

---

Voit provides commercial real estate brokerage services for all property types, including industrial, office, retail, medical office, and multifamily, in Southern California markets of Orange County, Los Angeles, the Inland Empire, and San Diego County. To learn more about how a CRE broker can help you secure the best property for your business needs, visit our services page or contact one of our trusted commercial real estate advisors.