Commercial Real Estate Agents – An Exact Formula for Successfully Helping Commercial Property Investors
In commercial real estate today, property investors can offer many opportunities within specialised market segments. Active property investors require ongoing support with property acquisition, tenancy mix, building disposal, financial controls, lease documentation and redevelopment.
It directly follows that you should identify and work with the best Property Investors in your town or city. The variety of work that you can create will be diverse and valuable.
In saying that, there are two very important facts for real estate agents and brokers to understand here:
- There are multiple levels of property service that you can provide investors as they look to improve property rental, tenant mix, and cash flow.
- It takes time to establish the appropriate levels of trust and communication with some local Property Investors.
To get closer to these clients and into the investment sales market it is necessary for any agent to provide specialised services for property investors. Most of those clients are reasonably aware and knowledgeable when it comes to property types, investment strategies, and property improvements. That being said, if this is a market segment for you, then you will need to match up to those clients with specialised services, knowledge, and professional property capability. It’s a personal process. Are you up to the challenge?
Specific Questions for Your Clients and Investors
Below are some specific questions that will help you connect with and service local property investors comprehensively. Design your prospecting and customer service processes to match the identified client needs that you come across. These questions will help you with that:
- What properties exist within the client portfolio today? Can you help with any of those properties particularly regarding rental, tenancy mix, acquisition, and disposal?
- Does the client have a preference for industrial, office, or commercial property? When you can relate to the property type, understand the best methods of sale when it comes to each property type and the current benchmarks in your local area applying to pricing.
- What are the expectations of the client when it comes to their property holding and investment duration? Some Property Investors prefer to hold assets for a considerable period of time; others prefer to sell the asset within 5 to 8 years and at the right time to achieve capital gain.
- What are the standard lease terms and conditions preferred by the client when it comes to a lease negotiation with any new tenant? Those lease conditions will impact the rental returns and rental types applied to the tenant.
- Does the client prefer to purchase properties of a certain size, type, or location? Some clients focus on certain areas of a town or city, given that they understand the property market and have established opportunities in the location.
- Can any timing factors impact the client’s investment focus and decisions? Some differences apply to short, medium, and long term property investment strategies.
- Some property clients prefer portfolio diversity to reduce income volatility. That diversity is typically achieved through a planned mix of properties, including office, industrial, and retail. In some cases, those clients will also choose properties in different cities to spread the risk of location-driven economic pressures.
So, there are some specific questions and strategies that you can adopt when it comes to working with property investors locally. It is a particular segment of the commercial real estate industry that offers significant rewards for astute and specialised real estate agents. Your skills can cover the entire investment skill base within industrial, office or retail property. Are you up to the challenge?
