When you work in commercial real estate agency, you really do need to know the trends and activity of the current property market. This requires marketing research that is up to date and relevant to the properties that you work on.
Good property research will always help you in your sales presentation and pitching process for new listings. vastuplus There is nothing more embarrassing in your presentation than being asked a question about the local property market, and then being unable to provide the specific answer or comment that the client was looking for.
Clients Know the Area
In many cases the clients that we work with understand the immediate area around their property far better than the agencies that cover the area. They know the history and intentions of all the local businesses and property owners. In many respects they may have an established business relationship or friendship with these groups. That being said, local property owners and business owners are also an amazing source of referral business and market knowledge. You simply need to ask the right questions.
To research the local commercial and retail property market, the following information will be of great benefit and should be a central focus for you.
First and foremost, you need to have a complete understanding of property usage and planning regulations as they apply throughout the entire local property precinct. There will be zones that apply to property usage and they will have an impact on business occupancy and property prices. Get a copy of the plans and drawings that apply to the current planning regulations.
The history of sales in the area should be obtained from sale records and council records. The trending of property prices over the last five years will give you an up to date impression of the buoyancy of the current property market. Drive past or inspect properties of relevance where you can get good detail of sale price evidence.
The leasing of commercial and retail property will be impacted by the supply and demand for vacant space. The trends in rental today and over the last few years will give you a good impression of business sentiment and volatility. There are different types of rental to consider such as gross rental, net rental, and lease incentives. Make sure you understand the differences as you gather the rental information from comparable properties. Also be aware of the typical outgoings costs as they apply to each property type. The outgoings will have impact on the differences between net and gross rental.
Identify the quality properties in your local area and research the relative property ownerships and history. They should become targeted properties for your ongoing prospecting processes.
Identify the location and investigate the costs of any vacant land in your property area. It is likely that these parcels of land will become suitable for development at some stage in the future.
Monitor the advertisements for property sales and leases both on the Internet and in the local newspapers. These advertisements will give you trends to monitor and targets to chase.
The researching of commercial property is a constant ongoing process for commercial agents. The agents that really understand the local property market can present and pitch for a listing more effectively and successfully.