Local people are the foundation of a successful real estate business. You can work with the key players of the real estate business locally and most particularly sellers, buyers, and business owners. There are plenty of opportunities in commercial real estate to be sourced in those groups as part of a prospecting model.
In this audio I talk about the importance of a ‘locally focused’ prospecting model and how that can work for you in your real estate business. Drive more listings and commissions your way through a bias towards the local area and the people in it.
In commercial real estate agency there are certain market symptoms for you to watch for. If you like they are the symptoms of change.
I like to think that any property market is an ‘agents market’. The buyers, sellers, tenants, and landlords will all suffer some market pressure and change, but we are the professionals that can choose our responses and actions. The commercial property market is full of opportunity for those agents that look for symptoms and adjust their actions accordingly.
So here are some ‘symptoms’ to watch for:
New property developments will throw some pressure on supply and demand for occupancy space and property ownership. Check out the local planning office monthly to see what new property developments are coming up.
Market rents will change seasonally, and for other reasons. Understand the ‘seasons’ and what happens to lease or tenant enquiry as a result. In some cases it pays to regulate the timing of property to be marketed for lease.
Incentives will change in your local area when it comes to leasing. The idea behind an incentive is that the cost of it is loaded into the balance of the lease term. In other words the landlord gets back the incentive cost and interest from the lease structure. You can build this extra cash flow from the rent review structures placed in the lease.
Time on market will change each year by property type. It is also a ‘seasonal’ factor to be watched. Some properties will have a long ‘time on market’ factor, whilst others will move quickly to a transaction. You must understand the reasons for either and both to occur.
Certain price ranges will be more acceptable to the market throughout your region and during the year. Keep the local sales records active so you can see what price ranges are more active than others.
Renovation and refurbishment will be factors of change that can apply to older and redundant properties locally. There is opportunity to be had here with the right properties that need to go through some usage change and property repositioning. Look for the properties that need to go through this cycle of change.
Always track the types of property enquiry coming in to your agency and how that enquiry is coming to you. Understand what those people are looking for when it comes to a property or location. This current property enquiry from all your listings will give you hints as to what is happening locally and how you can satisfy the demand.
Property research is easy in commercial real estate agency when you know what to look for. Keep your records accurate and up to date. You will then know how to improve your prospecting and marketing efforts.