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My first Broker, the Del Webb Corporation, was big on fast failure. The principle and skill of what I now call Terminatio Simulatio Velociter was drilled into the head of each fledgling Sales Counselor whose job it was to meet, greet and qualify prospect who visited the Sales Pavilion in Sun City West.

Now, some nearly 25 years hence, I truly do recognize the importance of “sorting” and the notion of elimination has become more and more a part of representing my commercial real estate clients effectively.

Of late, and driven by market conditions, there has emerged a new brand of bottom-feeding. It’s a concept I call “LOI Shopping” or, maybe “Networking the Deal” for better terms.

There is no doubt in my mind that this carp-like behavior among prospective tenants is a product of too much inventory and the desire of often marginal tenants to continue their vain attempts to shrink or even collapse the pricing envelope. Mind you, there is no orchestrated conspiracy here; just a glut of inventory and an every expanding population of weak tenants who think if they shake the tree hard enough fruit will fall to the ground.

Well, I am mad as hell and not going to take it anymore! I am implementing new measures to expose and terminate the pretenders…these fakes and would be tenant hypocrites who are representing themselves to my clients as so much more than they really are.

Although I am not ready to strap on a six shooter like Richard Boone did in “Have Gun Will Travel,” and ride into some western town on a mission of settling scores, I am ready for a serious revision of my qualifying language and the way I handle the “wanna be” candidate.

Since we are using some Latin, let me throw in some Greek too. The work “hypocrite” is derived from the Greek noun “υποκριτής” meaning “one who wears two masks.” It’s the source of the theater icon that depicts “comedy and tragedy.”

I am ready to pull back a few masks and find out what is behind them. I’m ready for a lot less comedy, especially since no one is laughing. Then too, I am not especially fond of the tragedy angle either.

Masks don’t work well in the empirical world of commercial real estate. Masks are only suitable for the stage, where the emotions of an audience are supposed to be toyed with.

I’m going back to what Del Webb taught me as a highly skilled Sales Counselor…the principle of Terminatio Simulatio Velociter or, in plain English, TERMINATE THE PRETENDER QUICKLY.

You see, guys like Del Webb understood clearly the principled approach to professional representation. There are only two types of real estate investors or, in the case of Del E. Webb, home buyers; the ones that will and the ones that won’t…the ones that can and the ones that can’t…the ones that do and the ones that don’t.

Those that will are those than can and those that can are those that do. No mask, no pretense.

To the Webb organization, the deliberately implemented sorting process begins at the first business encounter (give name, get name, use name) and continues as an integral component of all the follows, culminating in securing loyalty, examination, agreement and execution.

For the foreseeable future, the market is going to continue to hammer us all, owners, tenants and brokers. Too many properties, too little time and too few truly qualified tenants and investors.

I’m going back to the principle of Terminatio Simulatio Velociter or, in plain English, TERMINATE THE PRETENDER QUICKLY.

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Donald Teel is a Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Traditional commercial real estate marketing seems to be experiencing erosion.

Why?

Because many of the old models don’t work well in an increasingly collaborative world where people want to have a relationship and role in the creation of their investment outcomes, that’s why.

How is your property being marketed? How quickly can you turn the message and communicate change to thousands of people in a moment of time? These are huge questions for property owners.

In the marketing of your property are you running with the big dogs or licking with the pups? How can you break from the pack in 2010 and beyond enabling you to run with the big dogs?

Meet the Puppies Lickin’ and Playin’ on the Porch

When it comes to commercial real estate marketing, there are pups on the porch lickin’ and there are big dogs in the fields runnin’.

High failure rate marketing models such as cards, letters, complicated brochures, mindless spreadsheets that don’t cut-to-the-chase, ugly property signs and costly networking meetings are increasingly being replaced with lean and quick, impactful, attention-getting, direct and digital marketing models. Interactive, please.

In today’s commercial real estate marketing game slow is bad…speed is good; actually, speed is essential. In a competitive environment, slow is costly, while speed, agility and message delivery creates economic margins and a more responsive audience.

Big, old-line marketing is expensive, complicated and difficult to control, modify and monetize; the message is mostly, non-repetitive with a single impression that yields lower results. Message renewal is necessary for property owners, but old models make its delivery expensive and its recreation clunky and difficult.

A large factor in effective marketing is the ability or inability to edit our message on the fly…THIS IS HUGE IN TODAY’S FICKLE MARKET. Minutes and hours can make the difference in deal-making. Speed counts. Reaction time is money.

Break from the Pack…Lone Wolf Marketing

Ask yourself why Twitter, MySpace, YouTube, Craig’s List and Facebook have hundreds of millions of global viewers daily. Why do companies like Exxon, General Electric, Hollywood film makers, resorts, news networks and national retailers have Twitter accounts?
Continue reading “Break from the Pack Marketing Models”

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:

1. Financial objectives must be attainable;
2. A true market must exist for sellers, buyers, tenants;
3. 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.