By: Hyatt Tullu, Commercial Real Estate Intern 2025
In any development project, success is defined not only by what is built but also by how
much value it creates at the end of the day. One of the most effective, yet often
underappreciated, ways to ensure a project’s financial success is by involving an investment
sales broker early in the process.
Why Engage an Investment Sales Broker?
An investment sales broker specializes in the sale of income-producing real estate. Their
unique expertise lies in understanding what buyers value most, how investors underwrite
properties, and how market trends affect valuations. By leveraging their insights and data, you
can set your development up to achieve the strongest possible exit price when it’s time to sell.
Understanding Exit Valuation and Buyer Expectations
One of the first benefits of working with an investment sales broker is clarity on how the
market will view your project once completed. Brokers can help you underwrite the exit valuation
by analyzing comparable sales (comps), cap rates, and investor demand for similar properties.
For example, when working on a development with a tenant like 7Brew, brokers can pull comps
of similar quick-service retail properties, showing what investors are currently paying per square
foot and which lease terms are most attractive. This guidance allows you to make informed
decisions on everything from site layout to tenant lease structures to maximize value.
Market Data and Research
Investment sales brokers provide access to real-time market data by tracking active and
closed sales across property types and regions. They analyze pricing trends, investor demand,
and buyer preferences to help you tailor your project’s scale, use, and tenant mix to what the
market wants. This market-driven approach ensures your development is attractive to buyers
and investors, increasing the likelihood of a successful sale.
Timing and Strategic Advice
Investment sales brokers also offer strategic input on when to bring your property to
market. They can advise whether to stabilize leases first, pursue an early forward sale, or even
adjust the tenant mix on a multi tenant pad, to appeal to institutional buyers. Because they are
deeply entrenched in the investment community, they know what buyers are looking for and
when they are most active.
Maximizing Value Through Market Knowledge
Working with a broker helps you think one step ahead: who will ultimately buy your
finished product, and what will they pay for it? Developers often focus narrowly on construction
costs and entitlement timelines, but overlooking the exit strategy can leave money on the table.
Investment Sales brokers keep the exit in sight throughout the process, ensuring your hard
work translates into maximum return.
Final Thoughts
An investment sales broker’s role starts well before the project is built. By getting
involved early, brokers can provide an opinion of value based on current market data, helping
developers set realistic budgets and pro formas from the outset. This ensures that the project
design, tenant strategy, and financial assumptions align with actual buyer demand and pricing
expectations. Keeping the exit strategy in mind from day one reduces risk, supports smarter
decision-making throughout entitlement and construction, and ultimately positions the project for
a stronger sale when it hits the market.
At M Square Commercial, we believe that informed decisions lead to successful
outcomes. That’s why we go beyond traditional brokerage by thoroughly vetting multiple
investment sales brokers for our clients, to provide the most accurate valuations and the
strongest possible deal structures.
With deep roots and an expansive network in the development community, we’re
uniquely positioned to connect clients with the right experts and resources for their specific
project needs. From initial concept to final delivery, our goal is simple: to equip every client with
a smart, strategic roadmap that maximizes value and drives long-term success.
The post Working With Investment Sales Brokers: Setting Your Development Up for Success first appeared on M Square Commercial.
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