|Understand the opportunity in Vacant Land|
When you work as a commercial real estate agent, do not overlook the opportunities that the vacant land in your area provides. I have seen many a local agent build their market share from a base of vacant land listings and redundant property. Here are some tips from our Newsletter this week.
When you start your career in commercial real estate, you have to start somewhere with your market share. Initially the whole process of prospecting can be daunting and challenging. That is not to say that you do not prospect, but there are things to do and improve on as you prospect. You need a system of prospecting and vacant land can be part of that.
You can break your prospecting processes up into particular categories so you reach segments of the market. Here is a typical breakdown you can apply to your system:
- Owners of vacant land
- Owners of redundant property
- Business owners and proprietors
- Tenants in buildings and in quality properties
- Property developers
- Property investors
So this simple list gives focus to your prospecting model. You have categories to work with and grow your market share from. Vacant land is an easy place to start.
The vacant land in your local area will one day be ripe for property development. As the supply and demand for property changes in your area, the property developers will be on the lookout for new land to build on.
It should be said that the economics of a new property development depend on a number of things, but the raw material to start from is always the vacant land. If you have a group of listings that capture all of the local vacant property then the enquiry will come your way.
What does vacant land give you?
Vacant land as a source of listing stock has particular attributes that fit very well into a market growth model for commercial salespeople and agents. Here are the main advantages:
- Vacant land will give you sign dominance as an agent in the area. For whatever reason many other agents overlook vacant land and the opportunities available. Perhaps the listing is too hard to shift or the market is not right to sell the land right now; it really does not matter as you can get a signboard on the property and build your market presence.
- New developments need land as a base. The lead time to a new development is longer, but if you have a large parcel of land as a listing, the complexity of the listings and the deals out of one parcel of land can be significant.
- Property developers look for land and will notice your dominance of all the quality parcels of land. The links to property developers can be very productive and continue for the longer term.
- Supply and demand for business premises will change every year and seasonally. As the economy strengthens, the agent with the vacant land listings will be well placed to capture the newer property developments as developers take action again.
If you need to build your market share as a local commercial real estate agent, use vacant land as a point of commencement, then work your way into the other segments surrounding the vacant land.
If you want some more prospecting tips to help your commercial real estate career, you can get them at our parent website.