In this slower commercial property market, there is a lot of pain and discomfort being experienced by some of our commercial real estate clients and local property investors. That being said, we as the local agents and realtors are the ‘pain relief’ behind the equation. We can solve a lot of problems for our clients. We have the market processes and tools to do that.
Here are the typical frustrations of property investors in commercial and retail property today:
- Higher vacancy factors and selective tenants
- Protracted vacancy periods
- Poor tenants in the tenant mix and unstable market rents
- Less quality enquiry for a property that is taken to the market for sale or lease
- High property outgoings in maintaining the property for occupancy
- Extended time on market when it comes to selling or leasing a property
- Reduced price or rent outcomes from a contract or lease
- Difficulties with finance requirements and lenders
Rest assured that the property market does change and will get better. Remember that just 5 or 6 years ago we had just come through a huge boom period of commercial and retail property sales and leasing.
In these more challenging times, we as the local commercial agents and realtors are best placed to solve property problems for our clients. We have the tools and the ideas to move some of these challenging properties over a slump or hurdle.
Top agents can thrive in this market because they have the contacts and the database to do a lot of good things for their clients and property listings. When the market gets tougher, the top agents simply focus with more action and relevance; they know what is required to help their clients and they set about doing just that.
So here are some tips to work with focus in this property market today:
- Work with a focus on the local business community. They are likely to need property change or relocation. Some businesses will be more successful than others; sort through the local businesses to see who wants help with expansion, contraction, or relocation.
- Some local property investors will be needing help with tenant retention plans and occupancy changes. Your database of tenants will help them.
- Look at the older buildings that tenants are leaving. Those buildings may be a case for renovation or redevelopment.
- The methods of sale or lease in this market should be carefully considered with due regard for the property and the surrounding area. Exclusive listings for a lengthy period of time are the norm and not the exception.
- Vendor or client paid marketing should be obtained for every listing that is made exclusive.
- Take every listing into the local area personally to the business proprietors within regional proximity. A current listing is a reason to talk to others.
In this property market, we are the specialists that can solve many issues for our clients. It is just a matter of how that is to occur.
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