Cooperation in Commercial Real Estate Drives Results
SVN International Corp. (SVNIC) surveyed over 15,000 sale records from Real Capital Analytics (RCA) to define whether or not broker cooperation brings higher prices. The results were undeniable.
The survey established that transactions where brokers cooperate sell for an average of up to 9.6 percent more per square foot compared to those where brokers do not.
Authored by Solomon Poretsky, EVP of Organizational Development at SVNIC, the report contains definitive data supporting the pricing advantage of cooperation in commercial real estate transactions.
Takeaways from the Cooperation Study report include:
- Data based on a 15,000 transaction survey spanning the sale of properties valued between $2.5 million and $20 million in ten states over a 10-year period.
- The impact of broker cooperation varied by product type; with industrial properties enjoying the lowest benefit while multifamily assets received the greatest price increase from cooperative brokerage practices.
- Brokers that cooperate with all other firms drive more competition among multiple buyer pools, leading to a higher selling price for their commercial real estate asset.