Commercial Real Estate Success Comes by Knowing Your Market Area
If you plan to get into commercial real estate, but haven’t had a clue how to get started, remember that the top performers always seem to know where to find the right advice. Commercial real estate can seem complex, but if you know where to find accurate market information, you will be well on your way to increasing your income by adding commercial real estate sales to your existing business.
Many good real estate agents fail to understand that knowing a market area means much more than having an office in the same zip code as the listing. It is possible to work and live in an area for a lifetime and yet not know how the area performs in today’s market. Knowing how to locate accurate data on your target market will enable you to show the area with confidence.
Where should you begin? There are a number of factors to consider, but one of the most important things to note is who is working against you. Your competition has worked hard to establish a presence in your market area. They may be a bit territorial. You need an accurate understanding of whether they actively represent the area, whether people hold them in high regard or contempt and whether they specialize in a complimentary or competitive area of the market. Once you know who you will be rubbing elbows with, you can decide if you want to create a network or steer clear of their practices and reputation.
You will also want to develop a strong understanding of your market’s demographics. How similar or different is your area from surrounding areas? What goods and services are missing? Which ones are oversold? This information can help you reach out to business that can fill these gaps. This will also help you identify properties that are suited for this type of business.
Knowing the market also means researching what buildings are within your area. You should visit as many properties as you can to determine whether they are used as retail space or for offices. You should also note whether the building is adaptable and might be used for a different purpose in the future. Armed with that kind of knowledge, you will be readily able to sell your expertise in the market to potential clients.
One big tool to put into your tool box is an accurate list of property owners and occupants in your market area. Knowing the history and ownership of a property may give you the edge when it comes time to list it. It also helps establish a sense of confidence with buyers that you possess a knowledge of the area they can bank on.
Knowing your market area will help you stand out from the crowd of agents competing for that same listing. Understanding who works within the market and what services or goods are not yet available may help you rent a property others have struggled to adequately market. In the end, the more you know about your target market, the more likely it is that your name will appear as an agent on the closing documents!