To a large degree, the marketing results that you get today in promoting commercial real estate will help you with negotiations and client conditioning. The property market is forever changing.
Seasonal inquiry will reflect in both the time on market for the listing, and pricing strategies. The impact of seasonal marketing should also help you with the correct decisions when it comes to the method of sale.
In receiving the inquiry from your marketing campaign, you will soon know whether you are achieving the necessary volume of inquiry and the type of inquiry. Don’t let a marketing campaign continue for too long without appropriate assessment and marketing or media changes.
You only have a short period of time where you can generate the necessary inbound inquiries to achieve inspections. Here are some further thoughts when it comes to assessing the campaign for your quality listing:
If the volume of inquiry is too low, it will be necessary to recommend modifying and increasing the marketing package to capture more people.
If the type of inquiry is incorrect as to its demographics, you will need to adjust the marketing so that it reaches the right people more successfully.
At the end of the first week of the campaign, you should have seen significant results and obtained buyer feedback which will allow you to understand if you are reaching your marketing objectives and targets. Depending upon the outcome from inquiries, you will make the adjustments as mentioned earlier.
It is important not to allow the marketing campaign to proceed without monitoring and without adjustment. In most cases, the optimized promotion of a property will be for a period of six to eight weeks at the very start of the campaign. Beyond that time the property listing will soon become stale and unattractive. If the property has not sold during that initial promotional period, it is better practice to remove the property from public promotion for one or two months and then start again using a different strategy or method of sale.
It is standard practice with commercial property to seek vendor paid advertising with any quality listing. This then gives the agent some guarantee that the client is serious about selling the property; it also helps the agent when it comes to controlling inquiry, creating inspections, and negotiating directly with the client.
It is essential to seek payment from the client for the advertising campaign prior to its commencement. Many a client has delayed or avoided payment at a later time when it comes to marketing funds. Don’t start to advertise until such time as the promotional money has been paid by the client and is held in the bank account.
As a basic strategy, keep in contact with the client on almost a daily basis from the start of the campaign to keep them fully appraised of promotional activity.
In every listing presentation in commercial real estate, we like to think that we have the best solution for the client given the prevailing market conditions and the subject property. Communicating those facts as part of the sales pitch will be a central component of your presentation and listing conversion.
Most presentations today will be competitive. There will be a number of agents chasing the same client and listing. In a short period of time, the client will need to make sense of the strategies offered and the relative skills offered by the agents. Only one or agent will win the listing in most circumstances. Joint agency appointments where two agents share the same listing are usually an experiment of confusion. Help your clients understand the benefit of having one agent work for them on an exclusive basis.
Here are some questions to address as part of your sales pitch or listing presentation. They will help you prepare for the client and the challenges of the property.
Why has the client approached you? Get to the real facts and the background behind the client coming to you for property assistance. As part of the investigation, review the history of the property, its ownership structure, and tenancy mix.
What does the client know about the property market today? A selective question and answer process will help you identify what the client really does know about the prevailing market conditions. You can then fill in the gaps when it comes to property prices, rentals, and competing listings. Provide some market evidence using graphs and charts. The visual approach will be far more effective than a bulky proposal document.
Given the previous point, does the client consider that they are an expert when it comes to the local property market? You may need to show the client some understanding and talk them through their observations and intentions before you table your property proposal or presentation.
What will the client need to do with their property, and when will be the best time of year to achieve the result? Every property type will have strategies and solutions when it comes to the best method of sale or lease, and the best timing of the marketing campaign. Provide some logical recommendations based on your market knowledge and experience. Show the client what has worked in the past.
Be careful when it comes to using industry jargon in your presentation. The use of jargon will disconnect you from the client. Simplify and explain your recommendations rather than let the client fill in the gaps and make the assumptions.
Be sensitive to clients that are new to the area or the property type. Help them understand what the market has been doing and how they can be part of that property momentum.
Have some relevant stories of the property market available to tell the client. Those stories should be applicable to situations today and the type of property in question. You are the solution provider and thereby you should put yourself into the success stories provided.
Provide some testimonials from other clients in similar property situations. To support those testimonials, have a selection of property photographs available to display.
To win a listing presentation today your communication skills should be of the highest order and regularly practiced. These other facts provided above will help you with selling your services and professional skills as a top agent.
When you take a commercial property to the market today, the message about the property has to be clear and precise. There are limited levels of enquiry coming from most marketing campaigns given the current economic climate. This means that you have to do more with less.
It should be said that this is not a seller’s market, not a buyer’s market, but it is an agents market. We as property agents are well placed to encourage enquiry and connect with the right people. Your database is a key factor in this process.
We can produce the right momentum in marketing through developing a direct promotional strategy for each listing. The days of generic marketing are well gone. Specific campaigns create far more enquiry than the traditional generic approach.
When you take on a new listing, be very specific when it comes to structuring the marketing campaign and attracting the right target audience. It should also be said that the exclusive listing process in this market is far more effective than an openly listed property.
If the client chooses to openly list their property, tell them about the weaknesses of the process and the longer ‘time on market’ factors that normally apply. Most clients don’t like to be an ‘experiment’ when it comes to marketing; they want results and the exclusive listing process is the only way to do that with some control and reasonable success rate.
Here are some tips to help you with establishing a successful marketing campaign and correctly promoting a commercial property for sale or for lease.
There is a significant difference between direct and indirect marketing today. The generic approach involves indirect marketing and most particularly advertising in the newspapers, placing a signboard on the property, and listing it on the Internet. This will only produce limited enquiry. With commercial property you must take the direct approach in addition to the more traditional promotional processes. The direct approach says that you need to get into the local area and take the listing to all of the property owners nearby, the local businesses, and the industry professionals. In this way you will attract more leads and opportunities. Talk to more people; that is the rule today and not the exception.
The best method of sale or lease should be chosen for the property, the local area, and the target market. The method that you choose should encourage enquiry, inspections, and negotiation. Momentum is the key to getting a good result in commercial property marketing today.
At the time of listing the property, undertake a comprehensive inspection with the client. Move through the asset together so that you can identify strengths and weaknesses that will need to be addressed as part of the promotion and the advertising. Any weaknesses should be carefully assessed and dealt with prior to the commencement of campaigning.
It is in property markets like that which we have today where the marketing process becomes more important than ever before. Attracting enquiry and converting more inspections is central to attracting offers and closing negotiations.
If you want to be a top agent in this market, take a serious look at your marketing efforts, and your listing processes. Everything needs to work in harmony.
When it comes to marketing a commercial property for sale or lease, you can improve the results that you get through some simple steps and strategies. Gone are the days of generic marketing. Every advertising dollar needs to be optimised. Property enquiry just has to be created for the best possible result.
Here are some tips that can be applied to the property marketing process in your area and by property type.
Review all competing properties before you form an opinion on price, rent, or marketing method. There is no point in repeating problems or errors that others are making in property marketing. Check out those other properties for price, rent, and enquiry. Your marketing strategy needs to be better so decide what ‘better’ means from your new listing perspective.
The first 3 weeks of your marketing effort are really important, so decide what will be done in that period of time and monitor the results. Use a ‘Gantt’ chart to establish your processes for the client. The chart will help them see what you will be doing and when.
Keep the client fully briefed through each part of the marketing effort. You should have vendor paid funds for that property promotion, so spend the money as part of an agreed marketing and advertising effort.
Every enquiry that you get should be qualified and then put into your database. Over time that database will be a key component of your business processes and networking.
The internet is a really important part of every marketing effort today. Search out the ‘keywords’ on the search engines that are being used for property enquiry today.
Local businesses should feature in the early stages of the campaign. A quality listing is a great excuse to talk to the local business people and see what they know or may be looking for when it comes to a property move or upgrade.
A good signboard will help the property effort. Get the signboard onto the property as early as possible. When that occurs, talk the nearby property owners and investors. You will get a lot of market intelligence that way.
A ‘high end’ property advertising campaign is something that builds brand and identity. Tops agents use ‘high end’ campaigns to create enquiry from the local and regional area. This then says that all of your campaigns will strengthen your identity as a good agent if you let the marketing set a solid benchmark of quality and relevance. ‘Ordinary’ is not a good word when it comes to property marketing.
Commercial real estate is a people based business. When you really understand that fact, you will know what you should do every day as part of building your momentum in property marketing.
When it comes to marketing and selling a commercial or retail property today, you really do need to have a solid strategy to take the property forward and create the best enquiry. With less property enquiry and buyers around, you must have a focus of doing more with fewer enquiries that are coming in off the marketing efforts that you adopt.
It should be said that the best way to market a commercial or retail property today is through an exclusive listing process. In this way the agent can focus on creating the best enquiry for the property. Any client that wants to ‘open list’ their property is really wasting their time and yours (if you take the listing). Top agents do not take ‘open listings’ for this very reason.
Here are some rules that should be applied to the sales process for commercial and retail property today.
Choose a method of sale that activates the market. A timed method of sale such as Auction or Tender may be the best way to go. In this way your enquiry will be optimised. This process also helps you build your database of leads.
Vendor paid marketing will be part of the listing process today with almost all exclusive listings. The vendor should commit reasonable funds to the marketing effort. Top agents know how to sell ‘vendor paid campaigns’, so you should know how to do this too.
When a property is marketed comprehensively into the local area you can capture other opportunity locally. One good property listing is a great excuse to talk to many other people and business leaders. Use your listings to open the door on other opportunity.
Every listing will have a target market. The success of the marketing effort will be largely based on how you attract that target market to you. Given that the property market is so challenging at the moment in many locations, make your marketing effort stand out as unique and high profile. This will also help grow your list of qualified buyers.
Local property investors are always on the look-out for good property to invest in. Purchase decisions depend on price. Ensure that you price your properties keenly with relevance to the prevailing market conditions.
Local business owners are always interested in current properties for sale or rent. Every listing that you take to the market should be personally marketed to each local property investor. Send a brochure into the business community and follow it up with a personal telephone call.
Time on market will change throughout the year. Make the time of property promotion part of your overall advertising effort and strategy.
A commercial property can sell at any time; the results that you get in any sale or advertising for sale come down to matters of pricing and promotion. If something is not selling, then take a serious look at how you are promoting the property and at what price.
When it comes to the marketing of commercial property today, the focus that you create through the campaign will help you build the enquiry rate and the inspection profile. It directly follows that a well-constructed campaign will give you a lot of leads and opportunities, regardless of the current and existing property market.
The fact of the matter is that far too many commercial properties are generically promoted and advertised. The features of each and every property should be identified and optimized in each marketing campaign. Those features should consistently flow through all elements of the marketing campaign.
Here are some tips to help the strategy behind your next marketing effort and property listing.
What are the best days of the week to advertise commercial property locally? To some degree, the answer will depend on the attributes of the property and the target market. Commonly it is found that property marketing is more effective between the days of Wednesday to Saturday on a weekly basis. The fact of the matter is that you should know what days are better for your property promotion activity.
Defining the target market will help you with the layout of the advertising campaign, the features to be promoted, and the channels of media that you want to use. In most cases, the Internet will be high on the list of marketing alternatives. It is both convenient and economical to use the Internet as part of the campaign; to gain maximum penetration on Internet based adverts use keywords associated with the property type and location. You can get these keywords from search engine research on a weekly or monthly basis. In that way you will stay ahead of the enquiry trends to the search engines and utilise the correct words as part of your advertising format. Most people enquiring regards properties for sale or for lease will go to the Internet first before they lift the telephone and talk to local property agent. Keyword optimization will help you with your enquiry rates from each property listed on the Internet.
Professional photographs are critical when it comes to property promotion. If you want your advertisement to stand out efficiently and effectively, devote part of the vendor paid advertising campaign to professional photographs. Professional photographers know when to take the photographs, and how to make the property features stand out.
Inspection feedback to the property owner should occur after every property inspection. This is both a conditioning process and also a communication advantage when it comes to helping the client see the trends of the local property market today, and how they will need to adjust their thoughts on price or rent as the case may be. This naturally assumes that you are getting inspections from your advertising. If this is not the case, have a serious look at your property promotional strategy and revisit the plan for any modifications that can occur. There are reasons why enquiries do not come to you. Resolve those reasons quickly and effectively at the earliest possible time in any property promotion.
Test and measure every marketing campaign on a twice weekly basis. This will normally be on a Wednesday and a Friday. Observe the results that you get from every media channel and property advertisement. Test and measure the layouts together with the placement of media. In your location, some promotional processes will be more effective than others when it comes to commercial and retail property. Make the right choices, and the enquiry will come to you regularly and directly.
When the property market is slow and tough, the marketing process becomes even more critical. Every property listing that is exclusively promoted should be subjected to scrutiny and strategy throughout the entire campaign. In this way you will be a top agent producing the best results from every listing on your books.
The marketing of a commercial property today needs to be quite specific and unique. The attributes of the property, the prevailing market conditions, and the requirements of the property owner will all have some bearing on the marketing campaign to be created.
Gone are the days of a generic marketing campaign. To be fair to every commercial property taken to the market today, the exclusive listing process is highly important together with vendor paid marketing. In this way you will attract the right levels of enquiry to convert inspections and eventually negotiate on a closed transaction.
Here are some tips that can be applied to the marketing process so that you can achieve a high level of well qualified enquiry.
Inspect and review the subject property in a comprehensive way. Do so with due regard to the existing levels of improvements and the attraction factors that the property provides. If you were a buyer or a tenant for the property, what would attract you to make the property enquiry that is required? What would trigger you to lift the telephone and contact the agent?
When you completely understand the subject property, you can look through the local area for any competing properties that may still be on the market. You can also look for any existing properties that may have been recently sold or leased. Get details of any recent sales or rentals that have impact on your subject property. This local information will be invaluable when it comes to client conditioning, and future negotiation. The buyers and tenants that are in the market today will understand the availability of other nearby property and the prices or rentals as the case may be.
Given the two previous points, you can now consider the ideal target market that will apply to the subject property. From that target market, you can construct an ideal and comprehensive marketing plan. I go back to the point made earlier, where the landlord or property owner should be required to give vendor paid marketing funds to you as part of the marketing effort. It is quite normal for one per cent of the expected sale price to be the contribution required of the property owner towards the marketing campaign. It is very wise to get these funds paid in advance into your trust account or client advertising account as part of the preparation for marketing.
Determine the duration of the marketing campaign given the known target audience and the complexity of the property. How long will it take you to reach the target audience and activate the right level of enquiry? In most circumstances, this can be achieved in a period of eight weeks. For this reason, most marketing campaigns can be focused on an eight week time frame, with suitable adjustments during that time frame as enquiry comes in. You will know during that period if the right messages are being conveyed to the local business community and target market.
If the local property market is saturated with similar properties of similar type, then you will need to adjust the marketing campaign after the initial eight week period. If the property is to remain on market for an extended period then a secondary strategy will be required. That being said, the initial eight week marketing focus should have created some form of substantial enquiry for you to establish market feedback and potentially some offers.
Mix your marketing efforts across a number of media types and media strategies. We all know that the Internet has a major role to play when it comes to the marketing of commercial and retail property today. In your local area, you should know the strategies that work best when it comes to marketing property and generating enquiry.
From the earlier comments made above, you will have noted that the exclusive listing strategy is a key component of marketing commercial and retail property today. A good exclusive listing marketing campaign will always create more enquiries and hence give you a better chance of converting a lease or a sale as the case may be.
When you work with and on exclusive listings you will be building a database of well qualified buyers and tenants in your location and industry. Over time this will lift your conversion factors and potential commissions. If the property owner wants to list their property openly across a number of agencies, it can be a complete waste of time from your perspective. Some top agents will not normally work with open listings for this very reason.
When it comes to marketing a commercial property today for sale or for lease, it is important that the marketing campaign captures the target audience in the right way. Far too many properties are advertised generically. The end result is little enquiry and fewer inspections. When you work as a commercial property agent on commission, every listing that you take to market has to be optimized.
The property market is tough enough without the wrong decisions being made regards advertising and marketing. Here is a checklist to help you through the process as an agent promoting the property.
Inspect the property so you know what the attributes are that can impact the campaign. List the features and the problems in the property; both of these will impact the way in which you take people into and around the property as part of the inspection process.
Create an inspection strategy that allows you to show the property in the right respect. As part of that inspection preparation you can have available a ‘property handout’ with fuller details of the features of the improvements and location.
You may identify a list of presentational things that should be done by the property owner in and around the property before the campaign starts. Cost of remedial and presentational repairs will be a factor of consideration prior to the marketing campaign starting. In some cases you will have limited enquiry coming to you from any marketing effort, and for that reason all ‘hurdles’ and ‘obstacles’ should be removed from the inspection process. In this way you can optimize the potential negotiations that will occur.
Review the other properties that are for sale or lease in the area. They will have impact on the strategy of promotion and pricing that you adopt. Identify why those properties are still on the market today and consider just how they can impact your property price or rent. Will your listed property offer more or less advantages and improvements than these other properties?
Define the target audience that all of your marketing should be directed towards for the particular property. In this way you will know how to draft the advertisements and time the campaign.
From the definition of the target audience you will know just what improvements will be attractive as you arrange inspections of the property. This will also help in the qualification process that applies in all enquiries that come to you.
To correctly market a property for sale or lease today it takes real effort and skill. Professional and experienced agents know how to do this well. The effort that is required to correctly market a property will be influenced by the type of listing taken and the availability of vendor paid marketing funds.
Open property listings are a real waste of time and should not take a lot of your marketing effort; certainly if you can see a deal to be made with an ‘open listing’ then move towards it, however most property owners that give you an ‘open listing’ cannot to be trusted to fully disclose and cooperate as you proceed through any negotiations with qualified parties. More often than not they are working with a number of agents and taking comments from all; this can derail or frustrate your specific property promotion and negotiation.
With all of these things being said, many properties can be promoted directly to the qualified tenants and buyers in your database. All property campaigns should include an element of direct marketing. Each listing will help you expand your market intelligence and database. Every property listing will give you an excuse to talk to local business owners and property investors.
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Advertising and marketing is the only way of getting many people interested in a commercial property in a short period of time. The more that people know about the property, the greater the chances of someone liking it, and wanting to buy. When you can get people to like a property, the higher the asking price can be, and the greater the potential for genuine enquiry.
Although some Commercial Real Estate companies pay for the advertising themselves (and the vendor gets what he or she pays for; little or no advertising and poor results).
Anyone could put their property to auction for a free market valuation, with an impossible reserve price and no intention of selling.
Getting the Marketing Message Right
Selling a commercial property is a business transaction and a joint effort. A vendor who spends money to make money is a genuine seller. The newspapers get the advertising money, in return for which the vendor receives AGENT SERVICE, EXPERTISE, LOYALTY AND BEST EFFORTS.
If a commercial real estate auction company paid for the cost of advertising for each property on their books, (say 200 properties) their classified and display advertising costs would be over $50,000 per month! They would quickly go out of business.
Know Your Marketing Requirements
In choosing an advertising budget, the vendor should carefully consider what the advertising is required to achieve. The more advertising that can be done the better for the client; more people will know of the property and its availability. Give the client some marketing campaign choices as you pitch for the listing and ask for vendor paid marketing funds. When you take the comprehensive approach, it is hard for a client to ignore the marketing story and the need for them to commit to the promotional campaign.
THE CHIEF CONCERN OF A VENDOR SHOULD BE TO FIND A SOLUTION TO THE PROBLEM OF HOW TO GET FULL EXPOSURE IN ORDER TO ACHIEVE THE MAXIMUM PRICE FOR THE PROPERTY.
Individual advertising budgets in Commercial Real Estate are tailored for each property. Agent’s commission, legal fees and advertising costs are often paid for in just one higher bid at auction. (As a guideline, adequate advertising costs should be approximately 1% of the value of the commercial property being offered for sale).