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Finding Robust Market Conditions in Commercial Real Estate

The commercial property market is always changing, and the shifts and swings each year will move from buying to selling, as well as owning to renting.  Property developments also come and go from the market based on expected growth in a location.

Somewhere in those changes you will find property opportunity to work with the right clients and prospects.  The foundation of your real estate business will come from your database and the people that you are connecting with on a regular way.

(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)

Some clients are very active on property matters for the long term, whilst others are irregularly moving in and out of the industry.  Have you categorized your clients and prospects?  Who are the clients that will be doing things soon?  When you know the answers to these questions, you can take some direct action and move on some leads and property requirements.  Timing is everything in our industry ‘game’ so understand just where your clients and prospects sit in the timing cycle of change and activity.

Check your client list

So let’s look at your database and location now.  How well do you know your property market now?   Where are the next opportunities arising?  Have a think about these questions and answers:

 

  1. Where is the vacant land currently that could be the subject of a new development in the future? Whilst property development will come and go from the momentum of the market, future demand will eventually ignite a new building or property complex.  Watch for the zoning changes that could lead to a property release and new development.
  2. What are the classes of property that seem to be creating the most inquiry now and into the future? A regional assessment will help you pick a few property classes that seem to have most of the interest from the market.
  3. What can you do with investors to open up some buying and selling activity? Some investors are very aware of the need to grow or shift certain property holdings in their respective portfolios.  You can achieve some real momentum in knowing what these owners are thinking and planning for.
  4. What are the local businesses looking for when it comes to property occupation? There will be parts of your town or city where businesses like to occupy premises.  Look at the trends and pick those areas.

 

These 4 simple facts allow you to optimize market conditions in commercial property.  Stay close to the transaction momentum and the current listings in your territory.  Listen to what people are saying and identify what they are thinking; pay special attention to investors and local business people.  Within those groups you will find the future property deals that you are looking for.

(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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Commercial Real Estate Brokerage – Property Developments are High Opportunity Listings

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)