Delve into the pressures of the local business community if you want to find commercial real estate opportunity. See what is going on by street and location, and then ask plenty of questions in the local area. Talk to the right people. Connect with more new people every day.
So this concept sounds logical. Why not just implement it as a strategy each business working day? Many agents and brokers struggle with the concept because they get distracted by other things; soon they are not doing enough prospecting for new business and that is where the commissions and listings decline.
Business targets locally
If you are looking to improve your commercial real estate business, then you have some local area investigation to do and stay aware of. There are a number of things to look into, but here are the main ones:
- Population Data – The population of a city will have an impact on business growth, the labour market, and productivity. Are there enough people in the local area to service and work in the local businesses?
- Regional employment – You will be able to see the employment trends locally that are important to the local property market. There are different pressures to look for such as skilled labor, unskilled labor, white collar and blue collar work forces, location of the work force, and transport to and from the business location from the city. It is easy for local businesses to get the people they require for their business?
- Business Growth – Some segments of business will be growing and thriving. Identify those segments as they are likely to push the limits of occupancy and property change.
- Types of Businesses – Some agents and brokers specialize in particular property types and businesses. That strategy is a good thing as you can see the indicators and results of rent, prices, and future supply.
- Transport corridors and systems – Are the roads, ports, and airports sufficiently close to the property precincts that you serve? Understand how businesses move their product and get access to raw materials.
- Highways – The road network will have challenges for some businesses. That can then lead to a property relocation or expansion. If any road networks are under change or pressure, then look into the businesses that may be impacted.
- End user markets and raw materials – Local businesses need both of these things. Can you see how a property change or relocation could help a business improve productivity or operations? When you can see that advantage, you have some leverage to use in your prospecting model.
- Zoning of properties and property precincts – Some property zones will be highly active and desirable from a business or investor perspective. When you get a listing in that zone or precinct the marketing and inspections get a lot easier. Examine your prospecting model now so you know that you are focusing your efforts in the right locations.
- Economic forecasts for the region – The local business groups and ‘Chambers of Commerce’ will make regular forecasts about business activity. Tap into that information so you can shift your new business efforts.
So you can see from these things that there are some valuable indicators to watch, and segments of local property change where you can get some advantages in your listings, sales, leasing appointments, and property management engagements. Ask the questions directly into your local area so you can move on the new business that is coming up. It will be there for the taking for those agents and brokers that seek it out.