In commercial real estate brokerage you will have a few things to track by way of property market trends and changes. Nothing really stands still in the industry. Opportunities come and go as do the people within the local business and investment community. The business is out there when you know what to look for and you keep watching.
Its a personal thing
It is wise to track your property market trends so you can focus your personal efforts on the things that really matter. Time is precious as are the resources that we use.
The concept behind monitoring and watching your property market is that you can improve your listing base and your deal opportunities in a staged and direct way. So what would you track? How would you do it? Try these concepts for starters:
- The ‘Hot zones’ of activity – Where do people want to locate or buy into? Given your town or city there will be certain areas where things happen. If you can get more exclusive listings in that ‘hot zone’ you stand a really good chance of creating more enquiry and lifting your market interest from the buyers and tenants that are active. Quality listings in ‘hot zones’ generally create lots of enquiry. Over time this simple strategy allows you to build your database faster.
- Who is selling their commercial property and why? – Look into your property market and understand exactly who is selling or moving and why that is happening. Sometimes you can pick market trends or business segments that are under pressure of change; perhaps for expansion, change or relocation. If you have an industry segment in your town that is critically integrated into the local community, you can find lots of momentum and opportunity by focusing into industry segments. Special industries have special property needs; you can support and work within those requirements.
- What are the prices and rents doing? – Look at and assess the end result prices and rents from each deal in your zone of focus. Understand the final results and then see how property trends are moving over time. Some property owners have little or no idea of the real facts of the market. The only way you can work through that is to chart the trends and results that you are seeing within each property group. At different times of year there will be shifts of negotiations across office, industrial, and retail rents and prices.
The property industry is not complicated but you do need the facts to battle through listing and negotiation opportunities. Track your market conditions and look for the changes that can give you leverage in property sales and leasing.