The commercial real estate investment sales market can be highly lucrative and rewarding for agents and brokers. That being said, if this is a segment of the market of interest to you, take the time to understand investment strategies and results relating to property types locally. Look at how properties have changed over the years and where all the property developments have occurred.
In working the investment sales part of the industry, it is essential that you build a specific and up-to-date database full of property investors. It takes time to build that database, and so your prospecting model needs to be carefully considered and structured.
It is interesting to note that many property investors will connect with you as a result of marketing other high quality listings suitable for investment. That is why the marketing process is really important when you work on top quality properties.
One good quality investment property will put you in touch with other local property investors looking to expand or shift portfolio focus. From one property marketing campaign you can connect with many people in an ongoing way.
Tips for a Career in Commercial Real Estate Investment Sales
Here are some tips below that can help you move into this segment of the property market; understand the activities and priorities of clients and property investors locally. Consider this list of strategies and ideas:
- Always work with good quality properties in prime locations. That bias will always create more personal opportunity for you from inbound enquiry. A high quality listing will activate more people to call you.
- When you look at the local property market, you will see that some locations and properties will have a better future when it comes to increasing capital gain and tenant occupancy. Focus your prospecting efforts on the owners and landlords of prime properties in top locations.
- A property with a low vacancy factor will generally have a reasonable chance of improving market rental when compared to other similar properties in the same location. It directly follows that a vacancy should be resolved quickly and effectively.
- How can you improve the tenant mix to bolster the market rent? Small improvements in the market rent will flow through to gains in property value. It is a matter of understanding just how the tenant mix can be improved at the right time and in the right way for the asset.
- A property that is well leased when compared to other comparable properties locally, should attract reasonable buyer interest at the time of sale. There are differences in leases wherein some are better from an investment perspective than others. Look at all of your leases individually so you understand important factors such as rent review escalations, option terms, market rents, outgoings recoveries and permitted use.
- The levels of outgoings recoveries will vary from property to property and location to location. The impact of municipal rates and taxes will have a big impact on property expenditure. Look for the expenditure averages that apply by property type for the location. You will soon know the properties that are primed for sale and marketing.
- If an investment property is quite unique it is likely to require special considerations when it comes to marketing and the best methods of sale. Understand what works when it comes to selling and marketing any particular property type locally. How can you achieve the best level of interest from enquiring parties?
- The marketing of any property today can be done in many different ways. A mixture of online and offline promotional methods will usually be best. Step away from the generic marketing approach. Do things differently to attract better levels of enquiry. Local property investors will soon recognise you as the ‘person of choice’ to take a quality property to the market.
To work effectively and directly in commercial property investment sales, understand what makes a property successful as an investment.