It’s location, location, location when you’re looking for real estate, but it’s research, research, research on the other side of the desk.

The research staffs of commercial real estate firms make the brokers more effective, according to the industry.

“Information is key and over time everybody gets the same information,” says Jim Rea, principal and associate broker with J.J. Barnicke Calgary Ltd.

Sometimes a firm can gather the information before anybody else and be that much more effective for their client.

Chris Wood, Business Edge
Rob McElhoes of Colliers International says brokerages are bringing research back in-house.

Mike Gigliuk, research director at the Calgary office of CB Richard Ellis Alberta Ltd., says background information aids both tenants and landlords because it helps them analyse the market.

“I think we should get half the fees,” quips Gigliuk, “but I might be biased.”

Carla Fedele, research director for Royal LePage Commercial Ltd. in Calgary, notes that brokers have more valuable things to be doing than tracking the market.

“We can educate them on trends while they are out selling, which is what they are best at doing,” she says.

Researchers educate clients on the whole market, not just their own listings, covering trends, what they see coming and why.

Rea at J.J. Barnicke adds that information is key because the market is always changing. Every major division in his company — office, industrial and investment — has a dedicated research person. They combine to see the broad trends in the market, not just in isolation.

In a sense, everybody works on research because they’re responsible for sharing information and making sure it’s up to date, he says.

Rob McElhoes, who heads research at the Calgary office of Colliers International, says brokerages are bringing research back in-house after a trend to outsourcing.

Calgary brokerages have always had research in-house because of the smaller market size, he adds.

“As with equity brokers, you help the customers take advantage of market trends,” says McElhoes.

If you’re new to the city, you can glean market conditions from the Conference Board and Statistics Canada. Research departments bring real-estate specific, value-added material to the table, he says.

There are more variables to check for than in residential real estate, and more value-added in commercial.

A click of the mouse can bring information from the Internet, but it needs a researcher to interpret it in the light of the general economy and the local market, he adds.

Gigliuk says the research has to be in place no matter what the size of the deal. “It’s still necessary to have backing to position your landlord and tenant when you’re trying to bring them together. You have to be able to substantiate why the deal should be where it is.”

“In these last four years, I’ve seen dramatic increases in the need for information and demand for information,” he adds.

Research is also important to landlords, says Brad Krizan, leasing manager at Oxford Properties Group.

“The brokerage firms need it to get in front of the tenant,” he says. “And we also use it for planning and investment decisions. We need it to keep our information current.”

Research behind the landlords’ expectations for the market and the economy influences leasing decisions.

Oxford has a corporate-specific use for research as well.

The 41-year-old property management company owns many of its properties in partnership with a range of corporate and institutional investors.

The properties are typically upper-market office towers, with Oxford acting as manager of the buildings.

Krizan says that good research is key to keeping the partners informed on the local real estate market.

Oxford’s holdings in Calgary are substantial — the Ernst & Young Tower, Shell Centre, Canterra Tower and Calgary Place in Eau Claire; and the Home Oil Tower, Dome Tower, Canada Trust Tower, Lancaster Building and TD Square and Eaton Centre retail properties in the financial core farther south.

Rea notes that research is a good place to start for young people considering a career in commercial real estate.

They can learn the industry in a salaried job without the pressure of sales, gaining core knowledge before moving on to become a seasoned adviser, he says.

Real estate people with an interest in research make the best researchers, he says.

There are enough statisticians and economists around to give macro data, but real-estate research is micro-research about the local market.