Apr 12 2009
Marketing
Today, many real estate professionals use the “wing it” marketing approach, i.e., they throw up a sign, make a flyer and tell a few people about a property hoping that by some freak act of nature that the property sells or leases.
At Arizona Commercial, I and my team of colleagues are pledged to creating a asset relationship with your user needs or your seller needs that is, we do not want to play games with properties and investors where the numbers do not work.
Having said all of this, let me tell you about some of the ways, I market commercial real estate.
Playing the Numbers Game
Your investment is about the financial performance of a property or, in the case of a tenant user the cost of the property over time, measured against the needs of your business.
My marketing always begins with a strong dose of economic and performance truth serum. When properties do not work for you as an investor, seller or tenant…guess what, I am going to tell you so.
Everything begins with the first step in the commercial marketing process by asking one simple question: does this property perform for its intended end result? The answer to this question is based largely upon product, market demand, cost of money and the financial objectives of the buyer, seller or tenant.
There is an old saying, “If you have rotte eggs, it doesn’t matter how you scramble them.” So, I begin all marketing with truth-discovery and truth-telling based upon the stated financial objectives of the client and the potential performance of a property. If the client wants 2+2 to equate to 4.5, I can’t market that assumption because it is setting the effort up for failure.
Financial objectives fit or, they do not fit. If the numbers work and the market performance is there…away we go!
Smart Market Networking
These are complex financial times. We are engaged in a highly sophisticated and inter-connected world where sourcing commercial real estate requires “smart market networking.”
Commercial real estate is rapidly moving to a digitally networked marketing platform as more and more investors use online services and groups to locate purchases and to divest of property.
Three things must work for any marketing effort to be successful:
- Financial objectives must be attainable;
- A true market must exist for sellers, buyers, tenants;
- Network channels must be maximized for exposure.
These are the irreducible marketing criteria for commercial property. It is never a 2 out of 3 game. We have to bat a thousand!
Network marketing is the most powerful means of moving a property effectively from one ownership situation to another. Local networking is paramount but so also is distance marketing.
1. A Marketing Brochure. My marketing brochures contain images of the property, when applicable, arial photography or detailed plat and site plans, floor plans and most importantly, detailed financial and performance information. My brochures can be emailed on the fly or posted as .pdf on sites, blogs or other commercial hubs.
2. Direct Mail. In some cases and where warranted and applicable, I can and will target direct mail pieces to companies specializing in commercial property types such as retain, industrial, office, multi-tenant and others. When direct mail is used locally, I will seek feedback from area professionals and update my clients with the feedback, whether good, bad or indifferent.
3. OnLine Commercial Search Networks. In addition to local commercial multiple listing services, I can network a property through multiple channels where commercial investors congregate. Depending on the target audience and the property type I may use LoopNet, CCIMnet, REALera, CityFeet and my personal network through LinkedIn and other blog sites. The property itself determines how assertive I will be. The marketing of a poorly priced property or a property type that is lanquishing with respect to end users will typically be less assertive. The better the asset the more assertive the marketing; the more deficient the asset the more diminished the marketing.
4. Internet Marketing. Today’s sophisticated commercial investors begin with independent search and analysis through the Internet. Therefore, I target a part of my marketing through commercial websites and blogs.
The Internet marketing always includes our Company site, ArizonaCommercia.net, which is fed by LoopNet.
I am one of the only Commercial specialists that actually has a active commercial blog! My clients get favored treatment here at CommercialWebPage.com and outsiders have the rare opportunity to preview educational blogs, post comments and find useful market information. This creates transparency and clarity.
As a commercial real estate agent, I utilize a strong mix of blog posting, education content and targeted delivery. For example if I believe a property should be marketed to medical professionals, I will post the property to blogs in cities where I know the end user will have a better chance of seeing the property.
While most commercial brokers and agents will use a couple of websites to market a property, I may use 5, 10 or even more than 100. It is important for my clients to know that marketing is happening, 24/7/365 and is directed as much as is possible to a worldwide network of investors, buyers, tenant and partnerships.
5. Marketing Alerts and Hotsheets. Much of the commercial market is local but not all of it. It is important that I issue market alerts to key commercial brokers, locally and perhaps in distant markets both online and in writing.
These “HOTSHEETS” are simply alerts that something has changed with respect to a property or our local or regional economy that could have a direct impact on a buyer’s motivation or, even on a seller’s thinking as well.
The prompts for my alerts are things like price adjustments, business relocation into our market, layoffs, lender changes related to qualifications, growth in a particular commercial sector, announcements by chambers of commerce or economic development councils that often can signal changes to commercial opportunities.
Conclusion. I and my colleagues at Arizona Commercial are not sign fanatics and freaks who believe that by posting a sign we’ve done the job. We do more and as a result we ask more from our clients in the upfront property qualification process.
Some properties will not qualify for our marketing program and they need just a nicely colored sign in a window or in front of your a property or building. A lot of commercial brokers will do just that and only that…we will too…however, that approach seldom pleases us but more importantly it never pleases our clients.
Want more information about me or my company. Email me or, if you prefer you can use my contact form or, call me toll free at 1-877-777-9100.
CenterPointe Medical Plaza in Prescott, Arizona is a new build-to-suit medical office complex with Suites from ±2,000 to more than ±9,000 square feet.
One square foot = 0.09290304 m2.
The Northern Arizona commercial real estate market is tracking with the national markets. Leases were up by about 50 percent in 2008 over 2007 while the sales transactions over the same time period decline by about 45 percent.
My resume includes nearly 25 years experience in real estate brokerage ownership and management, personal investment in both residential and commercial, exchanges, land acquisition and leasing. 