An MTNL NNN broker can have very different traits from an STNL NNN broker.

MTNL NNN listing brokers often provide a package of services to property owners. In addition to selling a property for them, they also might do property management on the retail center and also leasing up of some of the empty spaces.

Since these listing brokerages are often doing multiple functions at the same time they tend to be not as efficient as a transaction broker only, as their time is stretched thin. So what happens is communication and responsiveness can break down.

I have found sometimes the listing brokerage will get too comfortable if they have all of your business versus using different companies for specific actions. I don’t like thinking one company with a retail center has my destiny in their hands and all of the control. If I do agree to one company I set up the agreement so that I can cancel the lease up or management at any time versus a long term one year+ agreement where they could be doing nothing and I am locked in. I want them motivated to keep performing.

If you own a smaller retail center also watch out for working with mega retail property management companies. Sometimes they will take on a smaller retail center in an area if they already have a larger client there with bigger retail centers. As soon as that center sells the property management company now lets the smaller centers they manage slip and no longer do a good job for the property owner.

If you look around you can often find retail property management companies that specialize in the smaller type neighborhood street retail centers of 5,000 to 40,000 sq. ft. They tend to have better systems set up to handle the smaller properties and are more in tune with the tenants that want to lease those types of spaces.

In contrast a transaction-only broker works with the closing of sales and they do not get involved with property management or leasing up of a property. For instance with NNN INVEST we work as a buyer’s broker on purchasing a retail center. We are there during the whole process of purchasing, giving input while the buyer is reviewing due diligence on a property and working toward closing. Even after the sale, if the owners have questions or want us to look at something, we will review it and give thoughts. We can’t really comment on legal advice or tax matters. It can be good to have a transactional broker look at something the owner is dealing with for lease up of the property or a management issue reviewing a management agreement. Since the transaction broker is not involved in the that part of it they can stay objective and give unfiltered comments, whereas a one-stop shop has a vested interest in all the services they are providing so want to position things in their favor. There has to be a happy medium between the landlord owner and the brokerage providing their services. If the agreement is weighted too much to one side the other loses motivation to perform. That is part of the art of the deal—crafting agreements that work well for both parties.

At NNN INVEST we have property management companies and leasing brokers we have worked with before that have done a good job. Past performance does not guarantee future success but helps to put odds in the buyer and future owners favor of a positive outcome.

NNN INVEST is a transactional broker and consultant and we do not focus on property management or leasing. We believe it’s better for other companies to handle that part of the property.