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Cut to the Chase with Commercial Property Vacancies

A vacant commercial property is a significant frustration for an investor.  They are loosing out on rents and outgoings recovery.  Over time that can all add up to a large amount of money and financial discomfort.  Look at vacancies for the opportunities that they are for you in leasing brokerage.

(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)

Survey the local property market so you can find the listings and properties that need a vacancy solution.  Approach the investor owners directly.  Work with tenant mix challenges and vacancy problems.

In this audio program, John Highman talks about the advantages of working with vacant properties and providing specialized leasing services.

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How to Track the Valuable Commercial Real Estate Opportunities

Landmarks

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?

The process?

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.

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A Goldmine of Commercial Real Estate Leads and Information in Local Businesses

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Know the local businesses located in all your targeted commercial buildings.

When you work in commercial real estate brokerage, the local business community can be a great source of leads and opportunities at a personal level. Use that fact as a point of leverage in getting your brokerage business underway or at the times when you require more clients and listings.

(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)

It is a simple fact that local businesses are very close to or aware of the activities of property owners and property investment. Those local businesses will hear about things and see things before you do. They will know about changes and pressures; that is where they can be of help to you. In saying that, you really do need to approach them in the correct way.

 

So what can you do with this?

 

Consider your current area and city. Understand where things are changing and what the local business owners think about that. Try these ideas and strategies for starters:

 

  1. Businesses under pressure – given the changes in the economy in most countries, some business segments are looking to adjust. Property occupation or use can be part of that adjustment. Ask questions locally of all the local business owners and occupiers; read the local newspapers. You will find those businesses thinking about change.
  2. Higher occupancy costs – when the rents go up, some businesses will start to look for other locations and other buildings to occupy. Pay close attention to the levels of occupancy cost, rental, and outgoings as they apply to property occupation locally. Different building types will have different cost averages to watch and work with. That is where specialization can help you move into a market share and find the new business.
  3. Expansion or contraction – when you look at single businesses in particular locations, you will see the physical signs of space and occupancy pressure. Perhaps those businesses with little or no storage capability, or not enough space. When you see the problem, make the call with some direct questions.
  4. Landlord difficulties – some landlords are really challenging for their tenants from an occupation and lease position. Some landlords try to squeeze the maximum rental from the asset without due regard for property performance and presentation. When this becomes a factor of property occupation, then the tenant will soon be thinking about moving.
  5. Property failure or age – older buildings create problems for tenants and customers. That pressure will bring about business frustration and movement. The same can be said when a new property development is evolving in an area. The older properties will start to feel the restraints of redundancy. That’s where you can get involved.
  6. Vacancy factors – you will see precincts where the vacancy factors are rising. The same can be said with particular buildings. Some buildings will always be hard to lease. Some property precincts will become less attractive to business owners and investors. That being said, there are factors of change and redevelopment that will provide brokerage opportunity.
  7. Strengths and weaknesses – when you look into a location you will see certain factors of strength that attract new tenants and occupancy. Those strengths can always feature in your property prospecting activities. Use of the strengths of a location and or property type to put some momentum and activation into your prospecting activities. Watch out for the weaknesses that apply to any zone or property type. The weaknesses in a property zone can give you some leverage, as people move and change out of the area.

 

So the message here is that you can use the local business community to find the opportunities relating to commercial property investment and brokerage. Ask plenty of questions, capture the information into your database, and keep in regular contact with the right people.

(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)