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.