In the commercial real estate market today, everything is changing. Whilst the properties are still available for sale or lease, the buyers and the tenants are more selective on the properties they require. There is more available stock on the market for the buyers and tenants to choose from.
Real estate agents are also finding less active buyers or qualified tenants for the individual property for sale or rent. Waiting for the ideal buyer or tenant to come along who can pay more for a property is not always a wise move; you have to work with fewer qualified people. It is better to work with the tenant or buyer that you have now and bring them to a transaction.
Preparation is the Key
All of the sale and leasing transactions today require deeper negotiation and correct marketing. When and if the buyer or the tenant has been located (as the case may be), the real estate agent should be prepared for extended negotiations supported by facts and information.
Let’s face the facts, it is a buyers or tenants market; property owners need to know that and be supported through the twists and turns of the transaction. Not all property owners like to accept the necessary adjustments to prices and rentals in this market; this is where the skills of the real estate agent are critical to the process and the final transaction. Preparation of the right supporting information is the key.
When an agent is working with the property owner through a sale or lease transaction, it is the evidence that is provided that will assist the property owner to make an informed choice and close on a transaction.
Here are some tips to help the process of explaining market trends in the commercial property sale or lease process to the property owner.
Every property sale should have a clearly defined target market of property buyers. Tell the seller or property owner exactly what that market is and how you are going to reach it.
Every property lease transaction should have a clearly defined tenant profile and target market. Tell them what that market is looking for and how the property in question solves that.
The size of the target market will always impact the marketing process and the time on the market. More targets to choose from will help with the method of sale or rent.
It is the target market growing or changing and how will that impact the property sale or lease? Identify the growth rate or the rate of change.
Given the defined target market for the particular property, what is the affordability factor when it comes to the rent or the price? How difficult is it for the buyer or the tenant to find the funds to do the deal?
How many other properties are available in the local area that would be classified as a direct competition to the property you are marketing?
Given the location of comparable properties, what price or rent should be adopted to complete and close a transaction faster?
What is the best way to tap into the target market?
In every city, suburb, and property type there are observed facts which will affect the property marketing and negotiation process. Using these facts above will assist you in listing the property and moving it to a successful transaction.
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