Having worked in commercial real estate for over 30 years, I have seen many markets and many changes. There will always be shifts and changes in property investment. Importantly, and as salespeople in the industry, we need to adjust with the changes as they occur.
Current property market trends are typically seeing a flushing out of highly geared, highly rented, highly overvalued, or highly priced property. There is a simple equation when it comes to commercial property. Businesses need to be able to pay the rent or purchase property at fair prices. When the rent gets too high, the businesses reassess their plans for expansion or relocation. When the economy becomes too pressured, the businesses reassess their plans for future operations. When property prices become too inflated, the local businesses reassess their operational decisions. A salesperson that knows the sentiment and the players in the business community will likely be the most successful salesperson in the local area.
A downmarket produces opportunity and churn, it’s just that it is a different churn than a buoyant or very active market. Adjustments are required by the salespeople in their prospecting processes to stay on top of the differences in each market.
Currently the availability of finance and cash is restricted in many markets. This should suggest that you concentrate on the lower priced properties when it comes to sales. It is also a proven from history that a market like this produces more leasing activity than anything else. Be versatile in your real estate prospecting to capture these existing opportunities. Buoyancy in the market will return, and in the meantime real focus and directed action is required to find the qualified tenants and qualified buyers that can act. They are still out there.
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