What are the driving factors in commercial investment sales in your area? What creates better levels of enquiry from the buyers and investors looking to acquire new assets? They are good questions worth visiting and studying for your location, particularly when you work as a commercial real estate broker.
When you know what people are looking for locally with commercial property then you have a reasonable chance of building sales momentum and listing opportunity as a broker for the location.
Getting to understand the key motivators for a property location is a matter of watching the comparable sales and tracking the time on market factors with the different listing types. You look at all the key performance indicators.
Here are some of the most important indicators that will help you with tracking investment sales activity and or opportunity:
- Time of Year – The levels of property enquiry will change throughout the calendar year. When the enquiry is up, then all marketing and promotional efforts should be underway. You can reasonably predict the levels of enquiry if you can consider the seasonal factors impacting business (ie public and religious holidays, financial year changes, climatic conditions, and access to raw materials). In most locations you have about 10 months of the year where property market activity is reasonable and predictable. In that period of 10 months you will make most of your commissions. How do you model your current real estate business for the peaks and troughs of property enquiry in those 10 months?
- Priority Precincts – There will be parts of your property market that are more desirable than others particularly with investment sales. Opportunity is the ‘name of the game’ in commercial investment activity. Look for the factors of change such as rezoning, development approvals, vacant land, and shifts in prices across each property precinct. Can you determine where most enquiry is generated today with your listings? Why are people calling you to inspect properties?
- Property Types – When you take any property segment you will see classes of properties, some older and some newer properties. Redundancy and redevelopment are factors of change within property types; those two factors will allow change and churn in your local area. An old or redundant property today can become the next project for the future.
When you watch these 3 simple indicators in your local property market, you will soon see where things are happening and when those things can give you greater leverage as a broker in tapping into commercial investment sales for your location.