When you consider a commercial property market in any town or city, you can find many factors of pressure and property ‘pain’ that will potentially be leverage and listing sources for you to work with over time. Work those ‘pressure points’ for the opportunities that they provide in both sales and leasing appointments for you as a local broker or agent. (NB – you can get plenty of client contact tips in commercial real estate here in ‘Snapshot’ – its free)
There will always be property owners in your zone that think they can solve their own problems with a property sale or lease, but the reality of the matter is that those FSBO owners do not have a database or a link into local enquiry. Sure, they can advertise a property in the local newspaper, and place the property online to seek enquiry, but they still do not have existing people or qualified parties that they can talk to about their property. It directly follows that your database is a major source of listing conversion if you use it comprehensively. Is your database large and up to date?
Think Local and Connect
Local businesses and property owners should be your targets. There are always people and property situations locally that can be ‘worked’ for both listings and change. Watch the property market and the people closely. Talk to the ‘locals’ about what is happening around them in the streets, buildings, and precincts. Look for the change factors and make the telephone calls into the location and the right people or property owners.
Here are some of the main things that you can look at and monitor for ‘pressure’ and property change locally:
- Landlords – some landlords will be ‘struggling’ with occupancy issues and vacancy factors. The age and or location of a property will have something to do with asset performance and occupancy. You can easily see a property that is struggling in the market. Create a list of landlords for a location and across a group of properties. Research the streets and buildings. Talk to people. Watch those buildings for change and pressure when it comes to occupancy, vacancy, volatility, and renovation or redundancy.
- Business owners – watch the local newspapers for articles relating to business change, growth, expansion, and relocation. An article in the newspaper or on the Internet about an industry segment, can be a substantial source of information and leads. Stay focused on business activity. Understand how local businesses are moving, changing, or shaping the local area. Some business owners prefer to rent, while others prefer to purchase assets for running their business. Split your services accordingly when you know the priorities of a business or decision maker; adjust your offering.
- Lease expiry dates – if you are making plenty of calls to local businesses, you will be able to ask about lease expiry dates coming up and then track the dates. Those dates should go into a diary or calendar where you can make direct calls to the business owners at the right time when the lease expiry becomes more critical.
- Developers – local property supply and demand will influence the viability of a new development or property project. A lot depends on the availability of finance and just how active a town or city is with business change and commerce growth. If you can find a good piece of land that is zoned for future use or redevelopment, start making the calls to the local developers. Some of those developers may be willing to act and move on a new development in a prime location. Timing is everything when it comes to the success of a new project. It takes about 18 months for an average project to get to the marketing and release stage. Ideally, you want to be the controlling agent with a new project.
The message is that you can work the pressure and pain points of the local property market so listings and clients can be more ‘abundant’ in your brokerage and agency activities. Get to know your areas and your property precincts.