How to Target Your Area
If you have thought about getting started in commercial real estate, but don’t know how to begin, remember that the difference between a “wanna-be” and a top seller usually comes down to finding the right information. It’s true that commercial real estate can seem confusing, but if you know where to get answers, you will have the tools you need to create success.
An old African saying that says: “To begin is to begin,” so if you want to make your mark in commercial real estate, start by investing in a market analysis. The difference between barely getting by and “laughing all the way to the bank” may be as simple as determining where you are most likely to succeed.
Your Target Area
Experts stress the importance of choosing one or two areas within a city or county as your market area. But how do you know where to set your stakes? Remember: all commercial real estate markets are not created equal. Even within a city, some areas tend to drive the market forward and others seem to always lag behind.
Your first step should be to decide how likely you are to score big in the hottest markets. You will need fewer sales if you can land the right big sales. So, if you are connected to the movers and shakers in an area, work it!
If you looked at your networks realistically and realized that you don’t have the connections to score the biggest deal of the year, consider working with smaller sales. This doesn’t mean you don’t have what it takes, just that you will need to be a bit smarter about putting multiple sales together until you have the networks you need to land that one big sale.
You can often do very well by marketing in less expensive areas and developing a repeat cliental that learn to depend on you as their expert. Identifying and limiting your market area will help you minimize costs and maximize profits on commercial sales. You can always expand your target area as your sales history and reputation build.
Another factor that you will want to focus on the type of property that you believe you can sell most effectively. If you like to develop bare ground, look for rapidly expanding areas. You won’t find much open ground in well-established neighborhood. If you want to specialize in apartment buildings, you will want to know that your target area has potential for growth. If the area already has a large number of unrented properties, you might do better in a growing area with fewer vacancies.
Many times, you will need to establish a trust with both buyers and sellers before you will be able to land that big sale. As someone who is just breaking into the commercial market, your clients will appreciate the expertise that you portray by identifying your target market. Expertise is a critical component in success. Aside from your personal reputation, it is likely the single most important tool in your tool box.