The best way to find new commercial real estate listing opportunities is to look for properties and businesses going through change. Small changes observed will lead to fresh strategies and opportunities for real estate agents and brokers. (NB – you can get more free sales training in Commercial Real Estate in our Snapshot program right here)
Any town or city is likely to have factors changing that are lead generators in the property market. An astute eye for change and a questioning process will help you connect with the right property people needing help with leases, sales, and property management.
In every year there are plenty of things happening in a town or city with relation to commercial property change. When you drive the streets you can see things that are worth exploring; the same can be said from a review of a local newspaper or business magazine. Business pressures, expansions, and changes are all happening. When you drill down into a property location in great detail you can see things that are worth following up.
Look for the signs of property change
A small change within a property or precinct can be the signal for something new; perhaps a new listing, or a new lead. The trick is in seeing the opportunity through the maze of changes.
Here are some typical changes that can open up into something of commercial property opportunity:
- An empty property – Unless a property owner has a lot of spare money and a diverse portfolio of mixed use buildings, a vacancy in any property can be a real drain on property performance over time. It doesn’t take too long for the outgoings for a property to drain out the cash. Lack of rent or poor levels of rental can be a real worry for some property owners, especially if they have not diversified across a number of property assets.
- A change in the road and freeway functions – When a road or highway change happens, it can have an impact on a location and also the function of local businesses. Stay ahead of road upgrades and changes so you can talk to all property owners in an affected precinct.
- A new planning approval – A new property approved for construction will soon be seen as a ‘magnet’ for new tenants and current tenants to move. That then has an impact on rentals, incentives, and the future supply of space.
- New properties recently constructed – Any new property will typically offer plenty of attraction to business owners looking to upgrade away from other poor locations or difficult landlords. Lease incentives are a big reason to move to another property at lease end.
- An expanding business – Some successful businesses are prime candidates for relocating and or purchasing properties locally. Look for the successful business segments in your city and then identify the actual businesses by name. From that point onwards they become a prospecting target with the appropriate strategies to support that.
- Sale and leaseback opportunities – Some businesses want to release cash from property ownership. The sale and leaseback process is very effective in doing that. The quality of the lease taken as part of the sale will provide the new property owner with plenty of investment opportunity over time.
- A change of corporate structure – When a local business is moving through a takeover, merger, or change of CEO it is likely to be subjected to asset reassessment and or business location review. Watch the newspaper headlines for just those events. Find out who the business leader or decision maker is and then make the direct approach.
So all of these things can be triggers or levers of change in commercial real estate and local property. As the local real estate broker, use these change factors to find new business leads and clients to serve. Ask plenty of questions. You will find the people and the listings you are looking for.