In commercial real estate, there will usually be a pattern to business as it applies to properties in your local area. There will also be a pattern to business that is separately unique relative to sales vs. leasing.
If you are considering your personal business plan or your agency plan relative to commissions and listings, it pays you to consider the variations between property seasons and selling periods. In an average year, the first and fourth quarters of the calendar year will usually be slower. This then says that most of your business will be written between the months of March and October.
The performance benchmarks that you set yourself regards listings and commissions should be adjusted accordingly. Averaging your listings and commissions across the entire year on a weekly basis really does not work.
Here are some observations regards seasonal business opportunity in commercial, retail, and industrial property.
- Many tenants and local businesses start to consider their relocation needs in the last quarter of the calendar year. They start to plan their property needs for the coming 12 months and will start to look around for new properties as soon as the Christmas holiday break is completed.
- Some local businesses will have pressures of occupancy change relating to the upcoming expiry of their lease. For this reason you need to monitor local leasing activities and lease expiry dates. On a regular basis, you should be talking to business leaders regards their leasing and property needs. Any lease expiry inside the next 12 months should be a focus of your prospecting and client contact activity.
- Particular businesses will operate under pressure of goods supply to their customer base. This then says that they will have an intense period of business focus for a certain period of time each year. It is the downtime or the slow time for the business that you need to identify. During this downtime they will be considering property changes and or adjustments.
- Solicitors and accountants will usually advise their clients on property change and or investment change following the end of the taxation year or a taxation assessment. Stay close to the solicitors and accountants in your local area in case any of their clients require special assistance when it comes to property changeover or acquisition.
The commercial real estate business is relatively seasonal. Commercial, retail, and industrial property are similarly seasonal. If your local area is also impacted by population or tourism demographics, you will also need to look at how those seasons’ impact property decisions. Opportunities are always available when you understand the ‘seasons’ of property change.
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