Size and quality are the key elements to watch in commercial real estate brokerage. The larger properties in any town or city are likely to be the best targets for new business and property change or churn in commercial real estate brokerage. That is because quality and location will always drive market interest and activity.
The message is? You will get more inspections from a good quality property, and your database of qualified prospects can grow accordingly.
(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)
So how do you get all of this property market trending started?
Research all of the local properties and build a target list of the better properties; who owns them and what are the factors of attraction with each of those properties?
Yes, I know that a good degree of research is required to get the right property facts, but if you sit back and wait for people to come to you, then the new listings that you really need will be hard to find.
Have a good look at your database. Can you match your skills into those properties and the relative owners?
Assess those properties for each of the following possibilities to see how you can service the requirements of the quality people that you know:
1. Drill down into an active property type for the location – From historic trending you will see what properties are more active than others. Split your analysis into office, industrial, and retail property. What do you know about each property type? Can you work the segments?
2. Tenancy changes – Some businesses have to move, expand, or contract. They usually consider their occupancy options at the end of financial years, calendar years, and also nearing lease expiry or option. Look at the local business community, and contact all the decision makers in all the larger businesses. I say ‘larger’ because you will typically attract a better quality of client and inquiry from larger corporate clients.
3. Market rent issues and weaknesses – Sometimes the rent in a location or in a building will be too high for a business to survive. In watching occupancy issues, talking to local managers, and door knocking local businesses you will find the people that are thinking about handling a property change.
4. Vacancy factors – Local empty tenancies will impact lease incentives. Either way you can work with tenants and landlords that have vacancy pressures or new leasing requirements. Assess the vacancy factors for your town or city on a monthly basis so you know what is available in space to occupy and what may be coming up in any new property developments.
5. Landlord pressures – Some tenants simply do not get on with the property owner or landlord. That discomfort can be a trigger for relocation.
6. Renovation and redevelopment – Properties that are going through change or getting older will be prime targets for tenant movement. Projections on supply and demand will help you move on the older properties and parcels of vacant land that are ripe for redevelopment action.
The deeper that you look into the property market, the more listings and property opportunities you will find. It’s always the right time of year to look deeper into any property market.
Drive and pitch your own real estate business opportunities through direct marketing. That’s what makes a top agent thrive in any location and economy.