In commercial real estate sales or leasing, every little bit helps when it comes to marketing the property to the target market and local area. A correctly constructed marketing campaign should be 75% focused on the local area and 25% focused on the greater region and beyond. Here are some tips on marketing from our Newsletter for agents.
In just about all property marketing efforts, we find that most enquiries will come from local business owners and local property investors. This is the reason for the bias to local marketing. Sure you may have some properties that are an exception to the rule but almost always it is the local enquiry that really matters
So all of this being said, the advertising effort for any property and listing should be comprehensive and across a number of marketing tools and systems. The days of ‘generic’ advertising and promotion are well gone.
So let’s differentiate marketing between ‘open listings’ and ‘exclusive listings’.
- In the ‘open listing’ situation you have no control on the property or the client. For this reason advertising is largely a matter of convenience. You put a sign on the property and an advert on the internet. Any enquiries that you get you can process in an ordinary way. Importantly you should not waste much of your time on any ‘open listing’. If the client will not trust you with an ‘exclusive’ agency, then understand that your focus should be elsewhere on your better listings.
- ‘Exclusive listings’ are better for the client and for you. If the client is genuine in the sale or lease process, ‘exclusive’ listings allow you to get deeply into promoting the property to the local area. The communication between you and the client is a lot stronger and more relevant to getting results from the marketing campaign. Every ‘exclusive’ listing should include a reasonable amount of vendor paid marketing funds.
When you are to promote a property to the local area, a campaign should be structured on the target market, and personally driven by you as the agent or salesperson. When you get too many listings, the ‘personal’ side of property promotion gets a lot more difficult. The number of ‘exclusive’ listings that you can take on at any one time is about 15 listings. Beyond that number, you need a personal assistant to help you with the required systems and processes. Remember that the client wants to talk with you and not your assistant.
To put high value and relevance into your property promotion, take every listing personally into the area and the business community. Use every listing as a reason to talk to business owners and property investors. In this way you will get better results from all your marketing campaigns.
You can get more free tips like this in our Newsletter for Commercial Real Estate Agents.
Leasing commercial property is a special process. When you understand the elements of the process, you can improve your listing conversions and lease negotiation outcomes. Here are some tips from our Newsletter.
So the landlord of a property approaches you to see if you can help in leasing their vacant tenancy. The inexperienced agents immediately accept the request with little further thought. Top agents ask quite a few questions and get the right market information before proceeding.
Here are some tips on how to lease commercial property today:
- Get the facts about the property location and the landlord. Check out the ownership detail on the title before proceeding.
- Inspect the property to review the improvements in the vacant area or tenancy. Also look at the services and amenities that are available for the tenants that take up a lease.
- Get professional photos taken of the property so you have something to use in the marketing campaign.
- Get physical details about the tenancy and make sure you get some plans to review. The best plans to get a copy of are the ‘as built drawings’. They will be helpful to the leasing process and tenant layout when you find a tenant.
- Identify what landlord works should be done in the property before it is released to the market. Presentation is really important today.
- Check out the comparable properties that have not leased in the local area. What rents are being asked in those properties and how will they impact your property? What can you do that is better and different?
- What are the market rents that apply to a lease of that property type today? Give due regard to gross rents, net rents, and outgoings that will all need to be set before the marketing process for the property commences.
- Should the landlord offer an incentive to get a new lease going in the property? If that is the case, do your homework on the size and type of incentives that are available in the property market today and with that property type. Any incentive that is provided should be ‘paid back’ over the duration of the lease term. It is your job as agent to know how to amortise the incentive back into the lease and the rent structure to get the landlord back the initial cost of the incentive.
- Establish a marketing campaign that is based on the target market for the property. Get the landlord paid advertising funds to cover for all the promotion of the property.
- Get an exclusive listing of the property so you can devote extensive effort to marketing.
- Draft advertising for the property and get it approved by the landlord before you proceed with the marketing.
- When the property is released for marketing, take details of the property to all the local businesses and property owners. This is a personal thing and should occur on a business and door by door basis.
- When you start getting the enquiry from your marketing of the vacant tenancy, qualify the enquiry before you take people to the property.
Leasing a commercial property is not hard; it is just a specific process that should be exclusively handled by each agent. It this way you will get better enquiry.
You can get more tips like this in our Newsletter.