The commercial and retail property market is changing frequently and in different ways. This is always relevant to your location and particular property type. That being said, you really do need to know the current comparable market information when it comes to the listing of any property. The clients that we work with should be suitably primed and briefed with the right information so that they can make correct choices when it comes to prices, rentals, and marketing.
So we are the experts when it comes to marketing and transacting commercial and retail property. If we are recognized as such, the enquiries and the referral business will come to us; in an ideal world, this is a great way you to work in the industry.
What we can do here is show the clients and prospects that we work with our comprehensive knowledge of the marketplace and the current property activity. This gives us a huge advantage when it comes to negotiating with both parties in any sale or lease situation. The market evidence can be used to negotiate through hurdles and create agreement.
Here are some categories of comparable market analysis that will help you in your knowledge:
- Competing properties should be identified for each and every listing on your books. The clients in each case should be advised of the prices and marketing strategies applying to those other competing properties. It may be necessary for you to adjust your marketing recommendations based on the pressures that the competing properties create. When it comes to very unique property, you can remove your listing from the market until such time as the competition has been reduced.
- Sale prices will always change. Getting to the real facts of each and every transaction can be a challenge however many other commercial agents will share price information after the transaction has been completed and closed. The industry is rather specialized and good agents will normally share market intelligence within reason. Accurate price information will be useful when it comes to the next listing within the property type.
- Rental evidence is required to support the prices and returns for good investment property. When the property market gets tougher, or enquiry becomes limited, the buyer expectations will change to an increased yield or return. You never really tough market, the price fall compared to the income return can shift by as much as two per cent or more. This shift is in the percentage return on investment. Whilst Sellers may not like to accept the real facts of the market, as the expert commercial real estate agent, you need to convey the facts from closed transactions, rentals, and prices. There is no point taking on an overpriced listing that can waste your time and take you away from other more realistically priced and or rented properties.
- Time on market will change constantly and seasonally throughout the year. You will need to differentiate between property types and property quality. There is a marked difference between the time on market for quality property verses that which applies to an ordinary or below average property. Allowances should also be made for the chosen method of sale or rental as the case may be. Some clients may have been influenced by other agents giving poor information.
- Methods of marketing during the year may need to change subject to the expectations of the prospective buyers or tenants. Seasonal festivities such as extended public holidays should delay the promotional of particular properties. Start the campaign when you know that the prospective buyers or tenants are looking around. Choose the methods of marketing that can reach the target audience efficiently and effectively.
- Supply and demand for property will change throughout the year based on prevailing economic circumstances, the sentiment of the business community, and new property developments in the location. Monitor the trends of property development at the local planning office. Get updates regards new developments under construction or consideration. Be aware of the construction costs of different property types and the consequential viability as it applies to new property developments. From time to time, the expectations of return on investment in a new property development together with the impact of the actual construction costs will limit the viability of any project. Property developers work on margins and levels of profit before they will commit to a project. They also seek to understand the pressures of growth as they apply in the local business area. You also can monitor these things.
- Changes to business sentiment and the community will always shift due to the changes in the local, national, and global economy. That being said, there are always segments of the business community that are successful given that they serve and act within different market demographics or segments. Understand who or what they are, and tap into them for the opportunity of a property transaction.
Enquiry types come and go throughout the year in commercial real estate. If you maintain a good database, you will understand the types of enquiry coming in now and what those people or businesses are looking for. You can advise your client accordingly and help them match their property to those requirements. You can also shift your prospecting efforts accordingly to get better results from your listings and transactions.
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