Does Buying Commercial Land Make a Good Investment?

As the old adage goes: “Buy land because they’re not going to be making any more of that stuff.” But the process of buying land is a bit more complex than that.

Buying commercial real estate is an excellent way to diversify your investments. There are several different kinds of property to consider investing in, each with its unique benefits and drawbacks.

We’ll now take a closer look at why investing in commercial real estate is bright and how to use it to your advantage.

 

What makes commercial land so valuable?

Commercial real estate is a good investment because of its multiple benefits. First, buying real estate allows you to control how it’ll be used and make various ways of earning income from it.

Some companies rent out space for their building instead of buying the property outright. It allows you to charge tenants for using your land.

You could also sell some or all of the land if its value increases. This includes:

  • Minerals use rights
  • Land use rights
  • Mining rights
  • Forest rights

 

Land values don’t fluctuate as much as other investments, so they’re likely to increase over time, making them an excellent long-term holding for your portfolio.

Commercial real estate is a good long-term financial decision because you can borrow against it when you need cash. In addition, banks often consider commercial property an asset because it’s hard to lose and has a high resale value.

If you can get a loan without having to post any personal assets as collateral, you can use that loan to invest in other projects that generate even more income.

 

Some questions to ask when buying commercial land

Before buying commercial property, you should ask some important things. Here are some examples of these types of questions.

 

What will you use the land for?

What’s the reason for buying the land? You can construct a commercial building on it or lease it to people who hunt and farm. You could also sell off the ground and make a small profit, either now or later.

 

What value does the land have?

You need to know the collective values of the land and any features that increase its overall worth. For instance, commercial land in Dallas, Texas for sale near a major road might be worth more because of its ease of access than land in an isolated part of the woods.

But if there are many forested lands available, then it may be worth buying them so that you can sell the wood. Again, knowing the actual value of your property within its location, assets, and other features will benefit you in generating income.

 

What do you need to do to maintain the land value?

Land maintenance is just as crucial as getting the most for your investment. Therefore, an environmental assessment plays an enormous part in land investments and cannot be ignored.

If your investment fails to meet the environmental standards required for its use, its ability to generate profits will be significantly reduced.

Maintain your property, and it will retain its short- and long-term value.

 

Some things to look for when buying commercial land

Before buying commercial real estate, you should consider these factors when deciding whether or not to buy:

  • Value for Money 
  • Market Conditions
  • Improvements or Developments
  • History of Land
  • How the Neighbors are using their land 
  • Zoning Restrictions 

You’ll want to gather information about the state of the local real estate market currently and any potential future use for the property through CREOP’s commercial real estate om. You can do this through conversations with realtors, research, or working with an expert in the field.

Before buying any property, be sure to research its historical background thoroughly. For example, you want to know if there has ever been anything built on the land before and whether the ground has had any previous uses ~ all this information is available in the offering memorandum template of CREOP.

One important thing to remember when buying land is that each piece of land comes with its own rules and regulations. Make sure that the land you buy is suitable for the purpose you plan to use it for. For example, if you would like to build an office building, there might be restrictions on that type of property in that zone

Is vacant land an investment?

Consider vacant land if you’re looking for an excellent way to invest in real estate. Before you buy, however, you must know what you want to do with the property.

That said, vacant lands carry many uses. For example, you could find a property developer to buy it to develop it. You could also lease it to a company that needs to build on it. Or you can keep it until the value increases, and then you can resell it.

Vacant land is one of the most flexible types of land investments. Consider working with a commercial realtor to help locate a property that fits your needs and financial objectives

.

Which types of land use do people tend to be concerned about?

There are three main types of uses for which plots of land are divided up: residential, commercial, and industrial. 

  • A residential zone island that’s used for residential development. People usually live there in either single-family houses or apartment buildings.
  • Commercial” means property zoned for business uses. It can be near properties zoned for residential or industrial purposes, depending on what is being constructed on the property.
  • Industrial properties (often called “industrial” or “manufacturing”) are lands that are zoned primarily for industries such as factories and warehouses. Therefore they may be closer to commercial properties than residential ones.

There are various kinds of land use, but here are the most common ones. Working with the right real estate professionals can let you decide which type of land is best for your business.

There are several common issues with land investments

It would help if you were aware of common pitfalls when purchasing your first property.

Remember that land belongs to Mother Nature. Your ideal property may have problems with floods or other natural hazards. It may also be located in an undesirable place prone to crime and other human-created inconveniences.

It’s important to know that these issues can significantly impact the value of the property and your initial outlay. However, you will likely experience a shorter return on your initial cost. But you’ll be almost guaranteed to earn profits in the long run.

What is Commercial Real Estate OM?

If you work in commercial real estate, you are most likely familiar with the term commercial real estate OM. While many businesses send out marketing flyers and brochures to the public, a strong commercial real estate OM (offering memorandum) can garner interest from qualified prospective investors and lead to a deal.

In this article, we explore what a commercial real estate offering memorandum is, how it is used, and explain how you can improve your own OM.

 

Defining the Offering Memorandum

An OM is an important report that is shared with prospective investors. This report generally gives a thorough overview of the property and the property’s financials.  

 

Here are more specific details on the content of the OM:

  • Building details such as property and location overview, demographics, and management
  • A summary of the property’s past, present, and prospective income and expenses.
  • Financial statements, which include a rent roll, tenant profile, multi-year cash flow projections, and financial metrics
  • Property images, aerial maps, site plans, and stacking plans.
  • A confidentiality agreement

 

Examples of Commercial Real Estate OM

When a commercial real estate owner or developer wants to raise capital and update an existing property or buy a new office building privately, they will make use of a private offering memorandum. 

Typically, a private offering memorandum sent to professional contacts is exempt from federal and state security regulations. However, if you make an OM that is targeted to the general public, you can only send it to accredited investors.

 

How to Improve Your Commercial Real Estate OM

 

Make it readable. 

Your OM needs to be easy to read, straight to the point, and overall it should be engaging. Stick to a simple font and space out the text. The writing should be structured with a clear heading, subheadings, and paragraphs. Stress key points in the writing by boldening text.

 

Present high-quality images. 

One way to engage the reader is by showing them quality, high resolution pictures of properties. A professional photographer can take interior and exterior photos with drone aerials. These types of photos will captivate potential investors.

 

Make the financial details presentable. 

You should not copy and paste your P&L statement from a spreadsheet. Instead, make use of an offering memorandum template. This is a much more professional approach to engage prospective investors. 

 

Have a strong call to action. 

The call to action of an OM is typically written in the form of a confidentiality agreement, or more commonly referred to as the NDA. 

 

Conclusion

When it comes to making a strong commercial real estate OM, you need to have short, snappy text, high-quality property images, and easy-to-read financial information. Once you have those details taken care of, you can start seeking out investors for an offering. It can take a lot of time and effort to make a well-designed OM, but it is worth taking your time to attract serious investors’ attention.

5 Commercial Real Estate Marketing Tips to End 2022 Strong

As the year 2022 comes to an end, many commercial real estate brokers are trying to fit in at least one more deal. In this article, we share five commercial real estate marketing tips for you to make a new deal nearing the end of Q4. 

 

The process of making a deal so close to the start of a new year is challenging. Between now and January 1st, both you and your clients are busy with certain responsibilities and holiday festivities. Ultimately, schedules get busy, and you have fewer working days during the holiday season.

 

While making a deal during the holidays is a challenge, it is not impossible. Let’s dive into the ways that you can increase your chances of ending the year strong with one more deal:

  • Strategize your outreach efforts.

 

Try not to get caught up in the reasons why it might be too late to make a new deal before the year ends. You need to strategize your outreach efforts because there are still many prospective clients who are interested in selling or refinancing their properties before the start of the new year. Your job is to seek out those eager prospective clients as soon as possible. 

 

With AI-powered commercial real estate software, you can find out which properties are most likely to quickly sell or refinance. You also receive dependable, true owner contact information- not just an LLC. Our software can also offer you accurate sales comps so that you can be on top of CRE market trends and build negotiations as you close a deal.

  • Send clients your holiday greetings.

 

The holidays can be a hectic time. You need to make sure that you are still a priority to your clients, and the best way to do this is by sending them holiday greeting cards. 

 

It is important to check in on your current, past, and potential clients. If you have any active clients, you could send them a gift basket or a bottle of wine to send them well wishes. For previous or prospective clients, we recommend sending a holiday card or even making a warm, personal phone call. These gestures can spark meaningful conversations and remind clients that you are here for them and ready to make a deal if they want.

  • Invest in a CRM platform.

 

You need to invest in a solid customer relationship management (CRM) platform so that you can keep track of your client contact list, increase your chances of closing a deal, and make sure you never miss a follow-up with prospective clients.

 

CREOP’s CRM was designed by commercial property marketing professionals who know what brokers need to drive deals and build a successful customer base. 

  • Set up targeted end-of-year campaigns

 

An effective way to make a deal during this time of year is by creating an End-of-Year (EOY) campaign. Make sure your campaign is enticing so that you can grab the attention of relevant contacts that you reach out to.

 

In order to run an EOY campaign, you need to start with your CRM and break down your contacts into groups. Make a list of clients that you spoke with earlier in the year who said that you could contact them late in Q4. These clients may not have been ready to list their property before, but sending them an email today can give them the encouragement that they need.

  • Post on social media.

 

Social media can help you build trust with clients and bond with past and potential clients. Yes, social media platforms like Instagram and Linkedin can get crowded, but brokers that post on a routine basis are more likely to gain higher engagement rates which can lead to a deal.

 

Here are some effective social media marketing strategies to follow:

 

  • Pay attention to certain social networks. Linkedin, Twitter, and Instagram are the most effective platforms to connect with prospective clients.

 

  • Regularly post market insights to show that you have expert CRE knowledge. Talk about current trends and share your predictions for the year ahead.

 

  • Respond to all comments posted on your social channels. Increase engagement by asking people to share their opinions. 

 

  • Show clients your personality. You want people to see that you are authentic, and if you are funny, don’t be afraid to show an appropriate sense of humor.

 

Are you determined to close a deal before the end of 2022? It may be challenging to meet your goals during the holiday season, but it is not impossible. With the commercial real estate marketing tips we discussed, you are more likely to finish the year strong. 

Emerging Trends in Commercial Real Estate

The commercial real estate space has undergone serious changes over the past year, mainly as a result of the spread of Covid-19. Despite the fact that the global pandemic dramatically increased the pace of the changes, there is a common belief that the new trends were only pushed to unfold quicker but the process had already begun before the virus. 

 

The pandemic has influenced the world in unprecedented ways and has shaped a new understanding of how people live and how businesses operate. The epidemic has inevitably led to an economic slowdown, which influenced commercial real estate with short-term changes like prices. The commercial real estate industry has managed to show more stability in comparison to other challenging periods like the 2008 recession. 

 

While the need for social distancing resulted in less interest in renting commercial office spaces, a variety of new opportunities arose in 2021. In this article, we’ll explore the emerging commercial real estate trends to give you an overview of what you can expect from the industry. 

 

Commercial real estate trends in 2021

There are a number of clear trends in the commercial real estate space that have emerged from 2020 and continue shaping the industry in 2021 and beyond. Although it’s not certain whether or not these trends are long-term or simply a result of a global pandemic and uncertain times. However, being informed about these significant changes will help you make the right decisions when it comes to selling your commercial real estate property or buying a new one.

1. Continued Demand for Industrial Properties

The first trend that is worth looking into is the continued interest in industrial properties in 2021. The Covid-19 pandemic has dramatically increased people’s preference for e-commerce and online shopping, leading to a rise in the demand for warehouses, fulfilment centres, and distribution hubs. 

 

In the U.S., industrial vacancy rates dropped from 5.6% to 5.4% from 2020 to 2021. Factory and warehouse leases rose to 524 million square feet, showing a change of nearly 27% from a year ago. The rise in demand was popular across all sectors but the increase in online shopping, deliveries, and the growth of the e-commerce space is considered to have a significant impact. 

To put things into perspective, a report shows that a $1 billion increase in incremental e-commerce spend results in an additional 1.25 million square feet of warehouse space required.

 

2. Growth of Multi-family Properties

Housing is among the highest priorities for individuals and is one of the first areas to consider reorganizing in times of economic instability and uncertainty. With the shifts that have resulted from the pandemic, a lot of people are not sure how the future will unfold in terms of their career stability. 

 

Multi-family properties are more affordable and are popular for their low barrier of entry. These are the two main factors that make multi-family housing a popular solution in 2021. There are also signs that renters will continue showing a preference for suburban areas as opposed to central zones with high traffic. 

 

The demand for multi-family properties is expected to remain high for apartment rentals, with forecasts for rent growth and vacancy rate increases. These types of properties are preferred by people of all ages as opposed to being an area of interest for baby boomers only. There are signs that people with more financial stability will continue showing interest in luxury properties. This means a shift from the suburbs to urban apartment living. This will require multi-family properties to provide more amenities to meet the new expectations. 

3. Omnichannel sales for Retail Properties

The rise of omnichannel shopping is nothing new. However, if an omnichannel shopping experience was a nice-to-have extra before the pandemic, today it’s a must that most shoppers will require. It’s no longer enough to rely on physical shopping experiences and a storefront if you want to stay competitive. 

 

Most parts of the world have already experienced a number of lockdowns, which has completely changed the way consumers shop. To avoid contact with others and ensure their safety, consumers prefer to shop from mobile devices, laptops, tablets, and other digital devices. 

 

In 2021, the digital world is more active and popular than ever and businesses will be forced to implement a digital sales strategy and invest more in social media marketing. 

 

4. Cleanliness Protocols & Increased Spacing

Considering that commercial real estate spaces offer a working environment for a number of individuals, keeping staff safe during an epidemic has given rise to a trend of new cleaning policies and spacing regulations.

 

If commercial spaces like offices, warehouses, restaurants, or retail shops are permitted to operate physically, they’ll need to ensure that they minimize the threat of contributing to the spread of Covid-19. To do this, businesses will need to reorganize their working environment to provide more space between employees. This may require moving to larger commercial real estate properties with more spacious offices or more rooms. 

 

In addition, while maintaining good hygiene has always been a priority for businesses, in 2021 cleaning and disinfecting takes the center stage. Regular disinfection can eliminate bacteria and prevent the virus from spreading. Trends related to cleaning commercial real estate properties include 

 

  • Provide regular disinfection 
  • Upgrade filtration systems
  • Set up hand sanitizing stations 

 

While before the pandemic some types of businesses could afford to invest less in a smaller commercial space, in 2021 this may not be possible due to social distancing regulations.

5. Use of Augmented Reality will grow as a sales strategy

Another impact that the global pandemic has had on the commercial real estate market is the rise of augmented reality. Although the trend is initially considered as one targeted at younger individuals, the reality is that it is likely to turn into the standard way of shopping and doing business in the future. 

 

Augmented reality solutions have been on the market for years but they’ve never been more suitable and needed than in 2021. They can successfully be implemented in an omnichannel sales strategy to provide an alternative shopping experience that does not require a physical visit to a store or office. Thanks to this innovative technology, consumers can browse around a shop virtually, try on different clothes, explore different interior design solutions, and more. They can dive into any type of environment from the comfort of their own living rooms. 

 

Concerns about the health and safety of employees and customers can be completely omitted via the use of augmented reality. 

 

6. Decline in population of major cities

Superstar cities or larger cities with large populations started to lose inhabitants even before the spread of Covid-19. Cities like New York, London, Paris, Philadelphia, Hong Kong and others had started losing their population in recent years. Their growth has either dramatically slowed or they’ve been at a standstill with no new residents. Megacities are becoming overcrowded and people are starting to show a preference for suburban areas with more space, access to nature, and a quieter way of living. 

 

This dramatic shift is partially a result of the increased opportunities of working remotely. The elimination of the need to commute to work every day opens up new horizons to a more comfortable way of life in the suburbs. Cities with more than 1 million people have shown the slowest growth. However, the pandemic is not the only reason for this shift.

 

The urban bubble began deflating in 2015 as a result of demographic changes. The millennials who then showed an interest in the busy cities and the urban style of living are now in another age group with families, automobiles, and new demands. The popular preferences in this demographic group are to live in a spacious, quiet, comfortable property with a yard and parking space. 

7. Work from home will continue to grow

When considering investing or selling your commercial real estate property, it’s also important to analyze the trends related to working from home. The evolution of the digital world and the modern technology used today makes remote work a popular alternative for a range of different industries. 

 

In fact, projections reveal that 70% of the workforce will be working from home by 2025. Covid-19 has only shown employees and workers that working from home is not as challenging as it was once perceived. 99% of remote workers share that they would like to continue working from home and 95% admit that they would recommend it to others. This type of work allows employees to have greater flexibility, to manage their time on their own, and to find the perfect balance between work and family. 

 

Remote work reduces the chance of spreading the pandemic and allows staff members and management to remain healthy and protected. However, it also has implications for the commercial real estate market as it is likely to observe less interest in renting office spaces. The typical large corporate headquarter is now perceived as a traditional institution that may be at the door of modern challenges. The future may be oriented towards selling or leasing workspace rather than offices.

8. Digital experience & technology will become more important

We’ve come to the last trend of our list of commercial real estate trends. Considering everything that we’ve mentioned above, a natural result is that there will be a need for more digital experiences and more innovative technology to support all the shifts that we’ve seen in the past couple of years. 

 

The importance of technology in the workforce has always been recognized but nothing compares to its necessity in 2021. Technological solutions are no longer a beneficial tool for engaging with customers or providing workplace flexibility. They’re now an essential component for running a business as more and more organizations are searching for ways to automate processes, provide security for employees, and offer remote working conditions. 

 

Some of the main changes that businesses and the commercial real estate space will experience include:

 

  • More investment in technological solutions
  • Prioritisation of employee and client experiences across technology devices & tools
  • Organization of technology investments
  • More use of automation solutions for improved customer experiences
  • More investment in cybersecurity

Conclusion 

The commercial real estate industry has been heavily influenced by global shifts and changes, especially after the spread of the Covid-19 pandemic. Consumer’s demands are changing and in order to stay competitive and make the right decisions, it’s essential to stay ahead of trends and be informed at all times. 

 

CREOP is designed to offer commercial real estate brokers, landlords, and sellers a comprehensive solution, offering detailed and precise insights, marketing opportunities, and other tools to help you achieve your goals in the commercial real estate space. The platform can support you in making your commercial real estate property more visible and attractive for potential clients. 

 

The modern cloud-based software allows users to design company branded marketing packages to include flyers, proposals, memorandums, and more. Design your marketing materials and personalize them according to your brand’s characteristics. Take advantage of information like property data, images, charts, graphs, demographics, financial analysis, rent roll, and other valuable details that will help you close a deal. 

 

You can use the platform for:

 

  • Retail
  • Multi-family 
  • Industrial 
  • Hospitality
  • Office
  • Land
  • Self-Storage
  • Commercial Leasing
  • Portfolios 
  • Mixed-Use

 

And more.

 

Information is the key to staying competitive in a dynamic and constantly shifting market. CREOP can help you gain access to all the information you need and can offer support in creating the perfect marketing materials for your selling or buying strategy. 

 

Book an online demo of CREOP and benefit from a world of opportunities by staying ahead of the emerging commercial real estate trends. 

 

6 Ways to Market Your Commercial Real Estate Property

The real estate market is an extremely competitive industry. In fact, it’s considered among the most competitive fields in the world. The global real estate market is forecasted to grow from $2687 billion in 2020 to $2774 billion in 2021. With so much potential in the industry, it’s only natural that brokers and real estate companies are fighting to make their way to the top, attract more clients, and increase their profits. 

 

Unfortunately, this endeavour is not as easy as it sounds, especially when it comes to commercial real estate properties. The global commercial real estate industry is valued at $3.9 trillion in 2021. For agents and real estate agencies to be successful, substantial commercial real estate marketing is required. 

 

Great marketing can truly set you apart from the rest and open new doors for you to meet potential clients and form new relationships. With the vast amount of marketing opportunities that we have in today’s digitally developed world, it’s certainly lost potential to not utilize them to their fullest capacity. 

 

In this article, we’ll share with you six ways to market your commercial real estate property like a professional. We’ll show you how to define your marketing plan and explore some of the key methods and techniques you can use to find more clients and be on top of your game. 

Defining Your Marketing Plan

There is a lot of noise in the commercial real estate industry. So what can you do to separate yourself? Are there any strategies you can use to increase your visibility?

 

For starters, you need to define your marketing plan and have a clear understanding of what you want to achieve and how to achieve it. 

  1. Define Your Objectives

Before even talking about a commercial real estate marketing strategy, it’s essential to ask yourself what you want to achieve and where you want to go via your marketing efforts. Are you looking to target specific client groups? Are you hoping to create more potential clients by slowly and gradually building relationships or are you after a quick sale? 

 

Set clear objectives before starting as they will help you stay on track and make improvements where necessary. Without any goals, it’s easy to get lost in the colourful pool of marketing opportunities and tools. 

 

  1. Have an Understanding of Your Target Demographics

It’s merely impossible to adjust your marketing plan appropriately if you don’t have a detailed understanding of your target audience. Your target audience will define what types of marketing strategies you need to use and how to approach your potential customers. It’s worth investing some time into getting to know your perfect client and understanding what makes them react. 

 

This will help you design the perfect marketing message that will motivate your target audience to take the action that you would like them to take. Some useful ways to do this is to analyze current clients, speak to friends, family, or colleagues, and look at what other competitors are doing and how they’re approaching their target audience. 

 

  1. Develop Your Game Plan

Once you’re aware of your target demographics, it’s time to create the actual strategy. Set realistic expectations of what you want to achieve and think about the methods you’ll use to reach your audience. You can take advantage of both offline and online commercial real estate marketing tactics to reach your objectives. 

 

Although looking at what other competitors are doing is useful, try to innovate and offer something new to clients.

 

  1. Create Your Assets

Next, you need to create your marketing assets. These could be anything from flyers to digital marketing campaigns that you’ve specifically designed for your target audience. If you have an in-house marketing team, rely on their expertise. Alternatively, you can also outsource your marketing and hire a proven and legitimate commercial real estate marketing agency to help craft the perfect marketing assets. 

 

  1. Track Your Results

Let’s not forget about tracking. A lot of commercial real estate agencies put a lot of effort into marketing but miss out on the most important part – tracking. There are a number of tools you can use but it’s recommended that you at least have Google Analytics installed on your website to track activity. Analyze the results at least once per month and use the collected data to optimize your campaigns and marketing strategy. 

 

Your website is a significant asset that should be generating activity. If this is not the case, it’s time for improvements.

 

Let’s dive into the different marketing tools and instruments you can use to make your commercial real estate agency more visible. 

 

  1. Property Website

Most commercial real estate companies have a general website with separate landing pages of the properties they sell or lease. The agency will likely have a listing page with all the available properties. This is your chance to shine.

 

Creating an attractive, clear, and easy to get around listing page will guarantee a positive user experience for other brokers or potential clients browsing for a suitable commercial real estate property to rent or buy. 

 

Your listing page must include all the property information and details such as:

 

  • Professional property images
  • Property details
  • Location maps
  • Contact information
  • Call to action buttons 
  • Downloadable flyer with a link
  • Links to agents’ emails

 

You can also add an inquiry form to make getting in touch with you easier, information on the current availability of listings, and more. Use your website cleverly and share any other relevant marketing materials with your users. 

 

  1. Email Marketing

Believe it or not, email marketing is not dead and is in fact still a vital component of your marketing strategy. To remind the commercial real estate community of your listings, it’s worth investing some time and effort into a well-structured email marketing campaign. 

 

Your email marketing should be consistent and regularly scheduled. You can use advanced settings to create customer groups and target them with different email messages based on where they are in the customer lifecycle. 

 

Some key things to include in your emails are:

 

  • Property images
  • Property details
  • A link to the property listing page 
  • A link to a downloadable flyer 
  • Contact information 

 

Of course, you can be as creative as you want with your email marketing. However, keep in mind who your target audience is and what type of messaging will make them tick. 

 

Make sure to have a premade list of addresses of brokers, partners, and potential clients that you will be sending the email. The bigger the address list, the higher chance of more open rates, more engagement, and more results. 

 

  1. Property Marketing Flyers

Flyers may come in third in our list but they’re certainly not to be underestimated. In fact, creating a property marketing flyer is one of the first things that it’s recommended to do. Most real estate agencies will use a standard company flyer template for all sold or leased properties. 

 

Don’t think of a flyer in terms of the old-school leaflets that were handed out in the past. Your property flyer can be downloadable and available online, it can be uploaded on property listing websites, it can be shared with potential clients on open-door events, and more. 

 

Make sure that your property flyers include high-quality images representing the property, a location map with an address, a section with nearby amenities and highlights of the property, contact details, site plans, and other relevant information. Some agents will prefer to avoid listing the sales price on the flyer but this is entirely up to you.

 

Wherever possible, work with a professional photographer for the images. This may be an additional expense but it will be worth it in the long run. 

 

  1. Listing on Commercial Real Estate Listing Websites

Another form of marketing that you can use as a commercial real estate broker is listing your property on commercial real estate listing sites. Make sure to include all relevant information about your listing and make regular updates or changes where necessary. Brokers will first check the listing website when working with a client in the search for a potentially suitable property. 

 

Being active on such sites increases your chances of getting recognized. Some listing websites will require a small fee to add your listing, while others are completely free to use. You may also be able to add a link to your property flyer that will provide additional information for the properties you’re selling or leasing.

 

  1. Expand With Digital Marketing Campaigns

Digital marketing is like a whole new world with infinite possibilities and potential. The best strategy is to design a digital marketing strategy that grasps all relevant channels that can be useful in promoting your commercial real estate listings.

 

Some of the main channels include: 

 

  • Google ads
  • Social media ads
  • SEO 
  • Content marketing
  • Video content

And more!

 

Social media like Facebook, Instagram, and Twitter are great ways to build a community and connect with potential buyers. The beauty of digital marketing is that you can sell without even trying to. All you have to do is create a beautifully crafted message and ensure it reaches the right audience. 

 

Providing high-value content will also be efficient in helping you build trust and authority among your target audience, partners, and other brokers. By appearing as a legitimate and experienced commercial real estate professional, you’ll be able to connect to more people, offer advice, and ultimately make more sales. 

 

Investing in digital marketing does not always guarantee immediate results. However, it’s an essential part of growing your business and increasing your popularity on the market. 

  1. Invest in Commercial Real Estate Marketing Software 

When seeking marketing solutions for your commercial real estate business, you can also rely on professional commercial real estate marketing software like CREOP. With such software, you can easily and quickly design company branded marketing packages, offer and keep track of memorandums, proposals, and flyers. CREOP is a cloud-based software that provides everything necessary for a full marketing strategy for commercial real estate professionals. 

 

You can access a myriad of different styles to create your marketing content, use your company’s color scheme, add property information along with professional images, and more. The online software will give the reader the impression it took weeks to create an offering memorandum when in reality it takes no more than an hour because the graphs, charts, tables, and financial analysis automatically get created by simply entering the income and expenses. Take advantage of rent roll data, demographics, property websites, email campaigns, and more at the click of a button.

 

Investing in professional commercial real estate marketing software can save you a lot of money down the road and boost your performance unimaginably. The good news is that you’ll have access to a single platform that provides everything you need. 

Conclusion 

Designing a marketing plan for any commercial real estate company or individual agent is no easy task. Yet, it’s definitely worth the time and effort as it will guarantee better performance and access to more potential clients. 

 

Utilizing advanced software like CREOP will help you dramatically boost your visibility and increase your close rates. Don’t wait another minute and make a difference in your professional growth today. Unlock your full potential as a commercial real estate broker and exploit all the opportunities provided by CREOP. We’re here to support you by answering any questions you may have or offering professional advice and guidance on making the right choice. You can also benefit from detailed tutorials on how to use this commercial real estate marketing software to its full capacity. 

 

How To Sell Commercial Real Estate

Selling commercial property may sound like a piece of cake but once you go through the process you are bound to realize that there are a lot of details and factors that you need to consider. Entering the arena of commercial real estate unprepared or with a blind eye may cost you a lot of time, money, and could ultimately bring you to a dead end. 

 

Considering that at the beginning of 2021, the volume of office real estate alone sold in the Americas reached nearly $128 billion, it’s safe to say that the commercial real estate space is attractive and lucrative. But regardless of whether you’re an owner of such real estate looking to sell their property alone, you would rather work with a real estate agency, or you are a broker hoping to sell a commercial real estate property for a client, there are a few fine details that you need to be aware of in order to make your sale quickly and get a decent return on your investment or sell for a reasonable price. 

 

In this article, we’ll share with you valuable information that will help you sell commercial real estate like a pro. We’ll look into what it takes to prepare the property for sale, we’ll explore the different stages of a commercial property sale, and we’ll dive into what it’s like to work with real estate brokers vs selling on your own.

Preparing commercial real estate for sale 

Every commercial real estate is different. Your property could be an office, a warehouse, a restaurant or coffee shop, or perhaps a whole office building. As different as each example could be, there are a few ground rules for preparing your commercial real estate for sale, no matter what type of property it is. 

 

A lot of property owners who are about to go into their first commercial property sale neglect the preparation stage and therefore end up with regrets. Preparing your property for sale can help you attract potential buyers quickly, can captivate their attention, and potentially help negotiate and close the sale. 

 

Here are some of the basic things you could do:

  • Repair any minor eyesores – Some parts of your commercial property are bound to make a first impression. This could be a poorly maintained lawn, old and rusty signages, clutter, or damaged exteriors. Putting in the time and effort to make some small repairs to improve the appearance of the property and correct the spots you know are visible will help you sell your commercial real estate faster and for a higher price. 
  • Make sure the lighting is in good condition – Oftentimes, property owners fail to acknowledge the importance of lighting when selling real estate. Install LED bulbs for energy saving purposes and point out how the lighting is durable and just what the property needs. 
  • Get professional cleaning services – Viewing a property that is in horrible hygienic condition could be enough to make buyers want to run away without a second thought. Schedule a professional cleaning company to remove any dirt accumulations, clean the carpets, any curtains or blinds, and enhance the overall appearance and freshness of the space. 
  • Conduct an inspection beforehand – Before listing your commercial property for sale, it’s worth hiring a certified property inspector to check the condition of the property and inform you of any weak spots or areas that need immediate attention. For example, check if the roofing is stable, the pipe system’s condition, and other vital parts of the property. 
  • Declutter – Decluttering is a fundamental part of preparing your property for sale regardless of whether it’s residential or commercial. But when we’re talking about business, it’s even higher up the ladder of priorities. Clutter could prevent the potential buyer from being able to imagine and visualize what the property could turn into once they move their business there. 

 

Of course, there are more tips that you can use and it all comes down to what your property looks like at the moment and what its weak and strong selling points are. Remember, you know your space best so take some time to make a note of all the advantages and disadvantages before welcoming potential buyers to view it or even listing it for sale. Brainstorm ideas on how you could turn the weaknesses into strengths.

Three strategies you could use to sell a commercial property

Next up, you need a selling strategy. And we’re here to help you by sharing with you three of the top commercial real estate sale strategies that inevitably work:

 

  • Partnering with a professional commercial real estate broker
  • Putting up your commercial property for sale on FSBO listing platforms or commercial websites
  • Directly communicate with buyers using off-market data

 

Let’s dive into each one of these strategies in more detail. 

Working with commercial real estate brokers

It’s not surprising that so many sellers of commercial real estate choose to work with an experienced broker in the field as opposed to tackling the task alone. Selling commercial property does have a level of complexity. There are a lot of legal aspects to consider, paperwork, negotiation skills required, and oftentimes – time restrictions. 

 

Partnering with a certified commercial real estate agent can help you deal with all of the mentioned above and more without any stress. Here are some of the advantages of hiring an accredited real estate broker to help with your commercial real estate sale:

 

  • Higher return on investment – Commercial real estate agents will be aware of any market trends, economic forecasts, and will have data available to help you set the right listing price. 
  • A developed network – Working with a seasoned agent also means that you can gain access to a rich pool of contacts and networks instead of purely depending on standard marketing alternatives that often take more time to prove fruitful. 
  • Superior communication skills – Believe it or not, communication during a potential commercial real estate transaction is key and could make or break the deal. Brokers are experienced and know what to say, when to say it, and most importantly – how to say it. They will also help you understand the demand and how to prepare your property to make it attractive. 
  • Listings – Although there are a lot of free commercial real estate listing websites that you could benefit from, working with a real estate agent means that they will handle the whole process for you. They’ll be able to strategically create the listing to point out the unique selling points of the commercial property. 

 

Marketing the commercial property on your own

On the other hand, there is also an effective strategy that includes you selling your commercial real estate by yourself, without the help of an expert. 

 

You can easily do the work alone, as long as you can dedicate some time to the journey. There is a range of commercial property listing sites available that could present your property to millions of potential buyers. Some of the most popular ones to be on include Commercial Estate, CREXI,Ten-X Commercial, LoopNet, and Showcase

 

When working alone, you can also widely benefit from services like CREOP. The platform gives both sellers and agencies the opportunity to create customized marketing packages, providing memorandums, proposals, and flyers using reliable cloud-based software. All you have to do is upload your company’s color scheme, enter the property data with pictures and the solution will provide you with all the charts, graphs, tables, financial analysis, rent roll, demographics, property websites, email campaigns you could possibly need.

 

There are other listing platforms, specifically dedicated to for sale by owner listings that you can also add to your strategy. For example, FSBO.com or For Sale By Owner could help you get your listing across to even more people. Some of them may require a subscription to actively participate and add listings while others may be completely free. 

Discovering buyers off-market

Lastly, the third strategy is finding buyers off-market. This strategy can be used by both experienced commercial real estate agents and owners who would rather seek potential buyers via research done off-market. It’s perhaps one of the most proactive ways to start conversations and discover buyers.

 

Oftentimes, this strategy is associated with accessing local public property records of off-market research. However, this method involves having a potential buyer in mind and conducting your research on that basis. Alternatively, you can use platforms like Reonomy that offer nationwide off-market information that can fully support you with your research. You can locate new contacts that may be interested in commercial properties like yours. 

 

When it comes to off-market research, you can try to find people you’ve recently bought or sold commercial real estate similar to yours or you could review real estate comps. Regardless of the path you choose for your property sale, off-market research does take time to conduct properly, which means that you ought to be prepared for a slower sale. 

 

Choose the right path for you

As you can see, selling commercial real estate could be a demanding and challenging task. Luckily, the market is so advanced and well-developed that today there are a myriad of options available to help you make the sale quickly and efficiently, getting the return on your investment that you’ve been waiting for. We hope that the information provided in this article will help you craft the right selling strategy for you and will support you in reaching the objectives you’ve set for your commercial real estate. Get in touch to learn more about what CREOP can do for you as a seller or commercial real estate professional.