In commercial real estate brokerage today, you should segment your property market in a number of different ways so that you can find the opportunity that may exist currently and that which is predictable for the future.
Market segmentation allows you to work on the right property listings and people over a period of time strategically. In that way you can get faster results.
So what do you need to know here?
Some listings are better than others. Some property locations are better than others. You also have a mixture of clients and businesses within the location to consider and connect with. Look for the variations and look for the people. Research will always help you find your leads and opportunities.
The right focus?
So you have some work to do when it comes to selecting the opportunities for your brokerage business into the future. Here are some ideas to do that:
- Segment the geographical location – understand your limitations when it comes to time, and on that basis focus your prospecting efforts within a specific geographical location. Determine the zone or the precinct by both suburbs and main roads. Within that defined area, you should have sufficient new business opportunity to work with over the coming five years.
- Select the correct property types – some properties will be more active than others when it comes to inquiry and activity. Undertake an assessment of supply and demand that applies to the location and the property segments. Look for the property types that create the most opportunity and change over the predictable future. You can then adjust your specialization across office, industrial, or retail as the case may require.
- Develop the required property knowledge – when you have selected the property types that you can relate to and understand, a degree of local property knowledge will always assist you in working with sellers and buyers, together also are with local landlords and tenants. Every listing negotiation and property pitch should contain a good degree of market evidence and property knowledge. Understand what’s happening in the local streets and within the quality buildings when it comes to inquiry and a transaction activity. It is hard for a client or prospect to refute or dispute local market evidence. Make sure that you have all the required facts relating to the property type and the location.
- Focus on quality buildings – some buildings locally will create far more activity and interest from the property market. It is not too difficult to identify those buildings and undertake the necessary research and investigation. Check out the tenancy mix, the vacancy factors, and the market rentals. Soon you will see a pattern of activity and opportunity that you can work with.
So there are some good things that you can do here from an opportunity perspective in commercial real estate locally. Always refine your strategies and focus over time. Understand what works for you in prospecting and new business, and the frustrations that you may need to resolve.
The property market will change many times through the year. The opportunities that you require will exist through that change and churn.