Saturday, June 16, 2012

Marketing Tips for Commercial Property Agents

man reading newspaper
Target market every property

In commercial real estate today we all know that things are changing in many ways.  The prices and rents of a few years ago are history, and todays results in the property market are a new level of change.

The clients that we work with should (you would expect) be conditioned to the market today; not so they say!  At the time of listing and promoting their own property for sale or lease these clients seem to have ‘limits’ on reality and market evidence.  On that basis your skills in listing and conditioning the client are today more important than ever before.

So let’s assume you have listed a property for sale or for lease at a reasonable and fair price.  The next stage of the equation will be in the marketing of the property to the target audience that you have defined.  There are good ways and bad ways to market property today.  The bad way is the generic way and that wastes everyone’s time.  Every property listing has to be specifically marketed so you create enquiry from what is (we know) a limited enquiry base.

So every listing takes more effort.  If you want results with your property listings and for your clients (hence more commission for you), the best thing to do is to become a target marketer.  It should be said that this should only happen on exclusive listings given the time and effort required to make all of this happen.  If you can avoid ‘open listings’ then do so, as you really have limited if any control on what the client will do in the marketing of the property.

So here are some tips for property promotion today:

  1. The best method of sale or lease should be selected given the property market currently and the expectations of the buyers or tenants as the case may be.  For example, there is no point in auctioning a property if auctions are not happening or converting to deals.  Do what works and is relevant to the property type and local market.
  2. Get the price or rent right from the start.  If the client wants a high or unrealistic price or rent, then it is better to deal with it at the start.  Failure to do this will see a lower rate of enquiry and an extended time on market.
  3. Choose the right time to release the property into the local area.  Take care in choosing the start of your marketing efforts; seasonal changes to business and the local population can shift the rates of inquiry.
  4. Monitor your results so you can make marketing adjustments sooner rather than later.  If you are not getting inquiry from your marketing efforts, take a good look at what you are doing and make some changes.
  5. Don’t let a property get ‘stale’ through a long ‘time on market’.  It is better to promote a property for 2 or 3 months and then stop for a few months.  Let things freshen up and change before you go back into the property promotion phase.

As commercial real estate agents, we should be marketing experts for the property type and the changing market conditions.  If you get this equation right, you can build a better group of listings and convert more deals.  Be sensitive to what is going on locally and take steps to refine your marketing efforts.