When it comes to selling and leasing commercial property today, it is really important that you understand the factors relating to competing properties in your local area.
Prices and rents for commercial and retail property will change throughout the year. They will also change by location and property type. Assessing the changes will allow you to be accurate and relevant when it comes to each and every particular property listing or presentation.
It is interesting to observe the inflated motivations and intentions of clients when it comes to setting prices and setting rentals in the sale or lease of any property. Most clients have a very good understanding of the price or rent that they require, with very little understanding of the actual results in the market today. This then says that every property listing should be well considered and negotiated between the agency and the client so that the property can be successfully marketed. You do not wish to waste your time now do you?
Top agents will avoid unrealistically priced properties and those clients that seem reluctant to accept the prevailing the factors of the local property market. Let’s face it; there are plenty of other listings out there to focus on.
Some agents will still however take on a property listing that is overpriced, expecting that they can condition the client over time to the true market conditions. They may also use a time based method of sale such as auction or tender to achieve that outcome. The strategy does work, providing you are well skilled in the client conditioning process.
Here are some factors to help you with local property market conditions and prepare yourself for future listing situations with clients.
- Look for similar property types in the local area. Gather information regards those properties when it comes to marketing strategies, prices or rentals, and time on market. It can also be that the agents involved with those other listings are not servicing or marketing the properties well. You will need to form an opinion that is relevant and accurate. Look at all the competing properties locally and inspect them in some basic form prior to using them as evidence with your client.
- Understand the differences between properties when it comes to improvements. Also consider the locational factors, and the size of the properties in question. Can one property be considered more attractive than another, and for what reason? Will that have an impact on property marketing, potential enquiry, price, or rental?
- Assess the time on market for each property type in your territory. The time on market will be impacted by current property enquiry and the supply and demand for premises. Future developments will have impact on existing properties locally. The local business sentiment will also have relevance to the time on market.
A successful property listing will generally be created providing you understand the prevailing market conditions, and can convince the client of those factors. It takes practice, however the client conditioning process will help you in establishing well priced listings that will attract enquiry. That’s what commercial and retail real estate is all about