Commercial Investment property sales can be a very lucrative part of the real estate industry. That being said, as an agent or a broker you do need a high degree of resilience and focus to generate the required listings, client base, and deal conversions.
In most markets and cities, there are plenty of other agents competing for the same client base and listing opportunities. Resilience and focus will help you build your market share as an investment property specialist.
In this segment of the industry, there are some key points of focus that will help you with listing growth and deal conversions. Here are some of those essential issues:
- Client base – the clients looking for an investment are quite special when it comes to selectivity and property type. Some of those clients will be looking for an investment that is fully functioning now, whilst other clients will be looking for future opportunity and growth. The cash flow in each case needs to be fully understood by the agent. For that reason, you do need to understand the relationships between property potential, net income, highest and best use, capitalization, and future value. In any town or city there will always be plenty of clients as investors to serve. Finding them can be a bit of a challenge so you will need a prospecting process that drills down into property ownership, portfolio growth, and property type. Grow your client base at every opportunity through direct prospecting, and keep your information up to date with all of your clients and prospects.
- Property type – some clients like to focus within a property type and a local area. They understand the growth factors that apply to the area and the tenants that are looking to occupy; in that way they minimise investment mistakes. As the local property specialist, you can identify the factors of supply and demand as they relate to the location and the market segment. Monitor all new upcoming property developments that could have an impact on the supply and demand across the segment.
- Matching people and property – it is quite common with investment property sales to put transactions together ‘off market’ when you find the right property for the right client. The advantage here of course is the ability to negotiate and close the transaction away from the pressures and awareness of other agents and brokers. To correctly match people to the property opportunities you will need a good database to support your networking and marketing strategies. When any quality listing has been found or is coming into the market, the strength and scope of your database will help you put together a transaction with a qualified buyer. Within your database, create a list of VIP clients that are most likely to need and accept your services soon.
- Tenants and landlords – it is a fact that the typical investment property and its performance will be supported by successful tenant selection, market rental, and leasing strategies. For that reason every investment sales specialist should be an expert when it comes to tenant choice and placement. There are many differences that apply to leasing and leasing strategies. The same can be said for lease documentation and tenant selection. Take time to understand the alternatives in lease documentation and how they can improve property performance as an investment. As the ‘investment sales specialist’ you will be working with lots of tenants and landlords as part of putting a sale together.
- Marketing Solutions – the promotional solutions that apply to Investment property sales should be carefully considered in each case. If you are to take an investment to the market as part of a sales campaign, understand and define the target market before you create the campaign and set the promotional budget. The top agents in this segment of the industry are well versed and experienced when it comes to marketing solutions matching the target audience. Any publicly promoted property campaign should be taken personally to the local area and to the market segment. That is why you will need an exclusive listing in each case.
You can see from the above factors, specialisation and information will help you as the local real estate agent convert more clients and transactions as part of servicing the commercial investment property segment. Build your activities around the five factors mentioned so you can attract more enquiry and potential property activity. Develop a competitive edge around the five factors.