Multifamily Fundamentals

They discussed our recent reports on the fast growing flexible space segment in office real estate and our ratings on WeWork Co.

When buying a commercial real estate property, the brokerage agreement is between the buyer or seller and the broker. The broker is an agent of the buyer or seller and, as an agent, has fiduciary duties to the client. Sometimes the broker could act as a dual agent, which creates potential conflicts of interest. Real estate counsel can serve to ensure the broker will represent a client's interest in a transaction by crafting a detailed agreement that meets those needs. Most states recognize that real estate brokers occupy a position of trust through a fiduciary relationship with the parties they represent. A fiduciary relationship brings with it requirements of fidelity and good faith. These issues are often raised in claims that an agent has acted as a real estate broker and a buyer (or seller) of a property. It is a potentially dangerous position for an agent to occupy. The benefit of the brokerage agreement is clear communication between the buyer (or seller) and the broker. It is an excellent opportunity to discuss who will perform what tasks. At a minimum, the best agreements shall establish: (1) the timing for completing tasks, (2) when and how the broker is paid, (3) how to handle broker expenses, and (4) when the broker's representation ends. The broker agreement should limit liability and include indemnification language that protects the broker from the client's acts and ensures that clients are not held responsible for the broker's act. Because this is an agency relationship, the client must communicate to the broker what representations or statements the broker can make on behalf of the buyer or seller. If a dual agent situation cannot be avoided, the issues of potential conflicts of interest should be addressed in the agreement. Listen as our expert panel discusses what constitutes an enforceable broker agreement, clarifies provisions to establish clear fiduciary duties, and outlines how to avoid conflicts of interest while limiting potential liability for the acts of others.

The workforce development landscape in commercial real estate is shifting dramatically, with hiring today becoming a very different undertaking than it once was. There aren't enough candidates to fill all of the open positions, and the skills gap is widening. In fact, research shows that the labor shortage is currently impacting as many as 70 percent of all commercial real estate firms. But this current talent pipeline problem can't be blamed on the pandemic and the Great Resignation alone. Factors such as employee disengagement, stagnant wages, poor work culture, financial uncertainty and a lack of mentorship have all contributed to this talent crunch. Hiring and retention have never been easy, but today's labor market has only increased the level of difficulty. So, what are commercial real estate firms to do? Three industry veterans will share their advice and answer your questions in a wide-ranging virtual discussion.

Curious about adding co-ownership offerings into your real estate business? Orlando Ramirez, Director of Industry Relations at Pacaso, joins us to share some surprising insights into how co-ownership can not only increase your buyer pool and inventory but allow agents to work anywhere in the country, earning a commission and equity. The How-Tos We’ll Cover: How to convey why co-ownership is a great solution for second home buyers. How co-ownership can increase your buyer pool and inventory How to re-engage past clients How to work anywhere in the country and earn a commission + equity How to connect with your network and generate more business