In this commercial real estate sales market you need to find well-qualified buyers effectively and quickly. As part of this process, it is worthwhile to sit down with the seller of the property to brainstorm all the regional property activity and history that they have seen recently. You do this by asking specific questions at the time of listing.
Well directed questions give you a well-directed property campaign. In many cases, you can set your sights on a good channel of buyers by just taking some of the further steps below.
Local Commercial Property Market Intelligence
Certainly some of the local market intelligence you should bring to the seller as part of the property listing and appointment process, after all that is the main reason that they will hire you as the real estate broker or agent. Do not however overlook the market intelligence that the seller could have gained from owning the property and the business in the region for a number of years.
It is quite likely that these questions below will help you extract more ideas from the property owner and perhaps even highlight the ideal type of buyer that you should be targeting. After all is said and done, the seller of the property knows the property, the industry, the precinct, and its history better than anyone else. This then makes your job of selling the property all that much easier.
Key questions to explore to help find the right property buyer:-
Who has a similar property and possible expansion objectives in the area? – This should be all the local businesses in the precinct for the surrounding 1km.
What companies in the region have recently undertaken acquisitions? – Even in a difficult economic or financial market, some businesses are still going very well, so you need to look out for these growth activities or needs that require more property to occupy.
- What companies in the area are highly active and quite profitable? Who or what are they and do they need more space in your precinct?
- What are competitors of the subject property and its business? Do these competitors need more property to operate from in your area?
- Who are the established contacts have enquired regards other properties recently from other sale campaigns?
- Are they still active and could they look at the new listing coming on the market?
- Who sells to the same customers that the subject property sells to? Could this be a channel of interested buyers?
- Are any of the existing customers of the property vendor/owner that could be considered potential purchasers of the property today?
- Are there any industry related executives seeking to move into their own property and run a similar business themselves?
From the above list, you will achieve an ideal profile for the property being sold and the targeted buyer that is suitably placed to purchase. Document the profile to the seller of the property and achieve mutual agreement on the profile before you start any campaign. You should be attempting to profile the purchaser with the following categories in mind:-
- both public or private company
- private individual or investor type
- target industry
- target equity
- target timing
- target location
- target cash flow
From the above list, you can then match your property promotion to the buyer profile most easily. The sale of commercial property and the location of a buyer is not just a function of advertising and waiting for enquiry. Gone are the days of advertising the property and waiting for the telephone to ring. In this market, you have to make the telephone ring. The most successful agents and brokers in this market are exploring many channels of a property interest for buyers. In markets like this, it is the targeted market that you identify and how you tap into it that really matters.