There are lots of things happening in commercial real estate this year, even at this early stage. Renewed business activity and market interest are factors that are driving price and rent changes in most towns and cities.
Investors are on the lookout for the next acquisition and growth opportunity; some are looking for the right time to sell. Business owners are looking to improve their financial result from property occupancy and location. As agents and brokers we can do so much in this changing property market. It all comes down to the people that we know and how we interact with them.
Where to Now?
So where do we go from here? Our clients need to know what is happening and where the next opportunity is coming from so that we can find the right solutions for our investment clients and business owners. What’s the urgency then? Some deals take months (perhaps years) of focus and nurturing to get together, be it for a lease or sale transaction. The right time for us in a deal or transaction may not be the right time for a client.
Certainly some property types will always have fluctuating interest, so it is best to work on the things that are showing the momentum in the location when it comes to growth and change of activity.
Property Indicators to Watch
I like to look for the property indicators that are showing valuable opportunity. Usually they are factors such as:
- Enquiry rates within locations
- The best methods of marketing for the location
- The types of properties that tenants and buyers are looking for
- Future supply of space and the demand factors that can be tracked
- Market rentals by category of leased property and by location
- Time on market by location and property type
- Marketing results for quality listings
- Prices established from actual sales
- Vacancy rates by location and property type
- New property developments in construction
So what can you do with these things? In a simple few words you can ‘refine your prospecting model’. In any period of 12 months an agents prospecting model should change a few times to allow for the fluctuations in enquiry and market demand. Make the right choices with how you are reaching out to the people you know could be taking the next step of property change.
Graphs and Charts
With all of these indicators you can also compile a series of graphs and charts that show your clients the trends visually. Numbers will show trends, and the graphs will be leading indicators for sales and leasing activity. Are you up to the challenge when it comes to putting together this property research? Start digging for the facts and the property indicators. Soon you will find the next deal to work on.