In many respects, you as the local commercial real estate agent will have some geographical territory and property type in which you specialise. When you specialise, you can provide much more value to the client with comprehensive local market information. It also helps you greatly when it comes to pricing and marketing solutions. Here are some tips from our Agents Newsletter.
To help you here, you can create a property inspection report process to be used for many different reasons and client requirements. The report can become a checklist around which you can base your recommendations and marketing strategies.
Here are some categories that can be merged into your property inspection report. Add to the list based on your specialist property type. Also add the geographical factors that may have an impact on any listing.
- The ownership of the property will need to be completely checked against the information provided by the client. Make sure that you’re dealing with the right people and decision makers.
- Review the description of the property and the title. Check out any encumbrances and rights of way that may have some impact on the title, the tenants, and the property ownership.
- You will sometimes find that there are issues relating to neighbouring properties and the local precinct that are not detailed on the title. Boundaries are a good example of that situation. Ask the client for an update regards any current outstanding issues that need to be resolved prior to the commencement of any listing and or marketing. Take notes in this process given that the information can have significant impact on future negotiations, or leases, and contracts.
- If the property contains tenants, you will need to review the leases comprehensively. Each lease can have strengths and weaknesses that can apply to the income stream and the property ownership. When looking at a property with a number of leases and tenants, take the time to go through the tenancy mix report, the tenancy schedule, and the lease profiles. You will need original lease documentation to do that, and expect that the process will take many hours if not days.
- Review the services and amenities that apply to the property and the current condition. Add to that the details of property improvements, strengths and weaknesses, zoning, and rates and taxes. It is worthwhile checking that the permitted use of the asset complies with the local zoning and approved development plans.
- Review the income stream for the property both in gross rental, and net rental. Review the outgoings for the property that apply on an annual basis. Check those outgoings against similar properties in the same area today. You need to know that your property is competitive when it comes to gross and net income. The net income will have an impact on the potential price that you may achieve a sale.
- Ask questions about the history of the property and the improvements over time. The landlord, the tenants, and the neighbouring property owners will have some value in this process.
All of these things lead to a solid set of recommendations that can be made towards the property marketing program in today’s economic climate. All of these things will give you relevant ideas to help in the promotional marketing activity.
You can get more tips like this in your Agents Newsletter.
When looking at a commercial property for the first time, it is best to have some form of property analysis report or checklist that can help you cover the required issues relative to the property type and location. Here are some tips from our Agents Newsletter.
When you analyze all of the local property information correctly, it gives you confidence when it comes to the listing pitch and presentation with the client. The client wants specific information and needs to know that you have completely reviewed the property and the opportunities that the property presents to the market today. You know the market better than they do.
Know the commercial property trends
Today we find that the industry is under significant change and the trends are more difficult to pick or plan for. As agents we can understand the market today better than the client. Most clients in your local area desperately need the assistance of a quality commercial real estate agent to help them with their property liquidation or transition.
Every listing pitch or sales presentation with the client has to be of the highest quality and totally relevant to the subject property in every respect. Many competing agents will be chasing the same listing with their own version of a marketing approach and the listing strategy. For this very reason, you need to be at the ‘top of your game’ when it comes to local market information and the listing strategy.
Real Property Analysis
Your thoroughness in the process of property analysis will give the client some significant comfort in considering you as the best agent to list the property. Here are some more ideas to help you with your comprehensive property and marketing report.
- Describe the property and its improvements comprehensively. That will include the age, history, improvements, services and amenities. If any risks exist in the current local area, they will need to be factored into your recommendations and report.
- Tell the client about the current levels of enquiry that exist for that asset and property type today. Reference to your database will help the client understand what is really going on in the market today.
- You need to show the client that you totally understand the strengths and weaknesses that the property brings to the market today. The strengths can be fed into your marketing strategies and recommendations. They will also help you define the target market for the asset. The weaknesses on the other hand will need to be addressed when it comes to property promotion.
- Detail the locational factors that apply to the property and include the details of competing properties that are available in the same location. Check out all of the competing listings to understand their methods of marketing, and the reasons they may be still on the market today. If any errors exist in those other listings, you do not need to repeat them when it comes to your client’s asset.
- When considering a marketing strategy, price, or rental, the factors of income, expenditure, and property outgoings will have an impact on the levels of enquiry that you will get. Consider how these financial factors will be merged into your marketing efforts and what impact they may have.
- Review all the leases in the property to understand the differences between each lease and the impact that each lease has on the income stream for the asset. In many respects, the lease profile and tenancy mix within an asset will have greater impact on the potential enquiry and price. Do some comprehensive research on these factors, before you make your final marketing recommendations to the client.
- Vacancies in a property will be of some concern to most prospective property buyers and will have impact on the marketing program. Similarly some leases or tenants will need to be addressed prior to the commencement of promotion. Provide the client with a leasing solution for any outstanding vacancies.
- The tenancy mix should be reviewed for strengths and weaknesses. Factors of vacancy may need to be resolved prior to the commencement marketing. Outstanding matters of negotiation with current tenants may also need to be resolved prior to the commencement of promotion.
All of these factors lead to some solid recommendations of listing, marketing, inspecting, and negotiating. Let the client see that you really do know how to address the challenges of the current economy, and the challenges of the asset.
You can get more tips for Commercial Real Estate Agents in our Newsletter.
The most successful salespeople in commercial real estate are the highly visible salespeople. They are known through their local area and every deal that they do is well publicised into the region. Here are some tips from our Newsletter.
Success breeds success in our industry. Use every commercial real estate deal and listing as a reason to talk to more people and grow your database. Those salespeople that struggle usually fall into one of two categories:
- They are not talking to enough prospects and clients on a regular basis, or
- They are unskilled when it comes to the industry and the property types that we work with
The great and most notable thing about the industry is that it rewards those salespeople that work with focus and consistency. We have to be of relevance to our market, and you cannot specialise in everything within the industry. Choose your property type and territory and then prospects with great precision inside that area each and every day.
You can gain more visibility with some commonly available tools and systems. You can mix and match these to suit your efforts and market. Here are some ideas to help you with that:
- If you are comfortable speaking in front of a lot of people, you can offer your speaking services to community groups and business groups. You can talk about the local property market and the trends of development. Everyone has an interest in property in one way or another.
- Write articles about your local property market and the trends that you are seeing. The articles can be sent to Newspapers as editorials, or posted online in a blog that you could establish to talk about your property market.
- Every person that you talk to should be entered into your database. From that database you can send Newsletters via mail or email. Auto responders are a good way to keep the process moving ahead.
- Use your business card everywhere. It is perhaps the most effective method of contact for building relationships with new people.
- Direct mail letters and brochures are still very effective, albeit more time consuming and costly than email. If you send a direct marketing piece through the mail about your property market, take the time to call the person about 7 days after the mail would have been received.
Personal marketing is all about visibility. It is your job to promote yourself each and every day. Prospects and clients will take your services when they trust you and respect your relevance to them. To be relevant the marketing process is ongoing and consistent. Are you ready for the challenge?
You can get more tips like this in our Newsletter for Agents.