In commercial real estate brokerage, there will always be plenty of new business to convert locally when it comes to upcoming and current property development approvals. Part of your prospecting model as a broker or agent should incorporate that focus on new developments, incorporating a real strategy and approach to the right people.
(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)
What’s coming up?
When you tap into a new or upcoming local property development, the business that you achieve can be ongoing and the listings can be numerous. A property development can incorporate a number of stages and premises to be marketed. That being said the ‘front end’ work to a property development can be extensive and take time, so be prepared for that ‘down time’. It is the longer term and bigger focus on the development outcome that is important; understand just how many listings and or commissions will come from the final project when it is active. Is the project for you?
As a base strategy to get this concept underway, you will need to regularly visit the local planning office to understand where current and new property developments are being considered and will be located. You can then inspect the property location and approach the property owner and or developer accordingly. Get in early on any upcoming property development.
Local Planning Office
Visit the local planning office at least once per month to review the minutes of the planning committee or planning approvals board. Understand how planning approvals are processed in your town or city, how long they take, and how the approvals documentation can lead you towards future listing opportunity.
Relevance is the key to converting leads and opportunities from and with property developers. A property developer will be inclined to use the services of the top agent who can prove that they dominate the market segment, and achieve the best results in a timely way. Is that you? How can you display that?
Here are some ideas to help. Remember the motivations behind any new property development and consider the following factors:
- Time on market will be a factor of concern for any property developer. They will need to know how the time on market can be shortened whilst they are still achieving the best levels of enquiry for the new property development and or premises. Show them how you will do that.
- Vacant land in the local area will always be a good source of property development opportunities providing there is a relevant demand in the local area and the zoning for the property is suitable. Merge vacant land ownerships into your prospecting model. Determine how long it takes to create a new property development, what could be involved, and how you can help the process and outcome for your investors and or developer clients.
- Redundancy in local investment properties will happen at any time in any city or town. Some properties reach the end of their serviceable use, and you can work with that. Businesses tend to move away from the older properties over time, and you can work with that. Those older properties can become renovation opportunities or redevelopment sites. Tap into the redundancy issues in your location.
- Change of use and zoning use will occur locally. Look for the decisions and the changes of property zoning as they apply in your town or city. A change of property zoning will usually create future property churn be it as a sale or leasing opportunity.
- Business migration and change are factors that we can always tap into. Look for the segments of the business community that are under pressure and change. Pressure factors can include business growth, expansion, contraction, or relocation. Connect with the local business community to understand where those opportunities will be occurring next and what those businesses will need to do.
- Property developers can be matched to local investors. You can be the creator of future of development business and property opportunity. You can find the parcel of land, the appropriate developer, and the business investor to take this project forward. Any new property development and redevelopment change will usually take two or three years to complete. You can be the catalyst of matching the three main elements to create that project opportunity. Work with the local property investors to understand where they are focusing and what they are looking for. Find investors (with the funds backing) that can work with those property developers and then locate the parcel of land to suit.
You can attract property development business in commercial real estate brokerage. Understand what is happening locally and then drill into the market segment. Talk to the right people to open up the enquiry and leads for new property projects.
(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)
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