Take the time to listen to your commercial property market and understand what people are thinking and seeing. There are leads and opportunities to be moved on providing you ask enough questions.
The good thing about commercial real estate locally is that many businesses need commercial property to survive and thrive. If you can match the investors to the businesses looking to occupy space then you have the basis of a real estate business. You can become the match maker of sales and leasing deals.
How can you move on this idea and find your leads and opportunities? The message is ask plenty of questions with all the people that you are meeting with.
What are the Indicators to Watch?
Consider these options:
- What the buyers are looking for? – There will be certain price ranges that are highly active from an enquiry perspective. Understand the precinct that most buyers are attracted to and find out why that is so. There will be indicators that will show you the best properties to take to the market currently. You can categorise your buyers into groups and then assess each group. Those groups would typically be small investors (under $2m), medium investors (up to $5m), and major investors (over $5m). The same rules can apply to business leaders purchasing as owner occupiers however the reasons for property change are totally different as are the motivations.
- What the tenants are looking for? – Within each category of property there will be trends in improvements, services, and amenities; the differences apply across industrial, office, and retail property. Technology, communications, and location choices will also come into a tenant leasing decision. Focus your questions with tenants so you can relate to exactly what they are thinking today and how they would see value for money in any rental situation.
- What investors are thinking? – Most investors think about tenants, income, rent, and return. The good investors and those that are highly successful understand the fine balance between those factors. The highest rents can be asked but sometimes will threaten the stability of the tenant mix. A fair rent for a reasonable property in an average market is a target to be aware of.
Talk to people in each of these groups on a regular basis so you can see what the property market is doing and where the next active areas of enquiry are likely to be. It’s a simple equation to watch and track.