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A new way to lease commercial real estate

Technology can be remarkable. Real estate transactions only happen when there is a willing buyer and seller. For decades, the only way for that to happen was for a buyer to hire an agent to search for potential properties. Once some potential properties had been identified, the buyer would need to visit the property and if they found something they liked, they would set up meetings with the seller's agent to work out the deal.

Looking for a site was time-consuming and expensive. Then came the internet. With a few clicks of a mouse, you could identify a property, learn many of the details, often view the premises with a full-360 degree view and sometimes go on a virtual tour of the property before ever stepping foot in it.

Now, a new website, Crelow, looks to transform even more of the commercial real estate business and hope to become the equivalent of "Uber" for the process of securing commercial real estate leases.

The potential tenants list their requirements on the site and include such non-traditional items as "vibe" or culture of their company. The tenant information is then available for landlords to bid on.

The site hopes to attract the business of small businesses with limited space requirements. They claim 80 percent of commercial real estate transactions involve such tenants, who may often feel they are of little interest to large brokers. Their average transaction involves property in the 3,500 square foot size range.

They make their money by receiving a percentage of that savings from brokerage fee that is rebated back to the tenant from the landlord. The service is available in a limited number of cities, including Minneapolis.

As with any transaction, discussing any financial deals with your attorney is the best means of ensuring you understand your rights, obligations, and risks before you are bound by such an agreement.

 

Source: mercurynews.com, "Crelow aims to be Uber and online dating app for commercial real estate," George Avalos, February 9, 2016

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