Commercial Agents – 4 Techniques for Selling Commercial Property Today – Commercial Property

When it comes to selling commercial property today, it is fundamentally important to ensure that the correct method of sale is selected. This is where the professional real estate agent will advise the owner of the property and give examples of the alternative methods of sale.Not all methods of sale work well at the same time, on the same property. The best method of sale for the property promotion should be the one that attracts the buyers to the property and encourages them to act in the sale. If the wrong method of sale is chosen, the buyers will find the sale process frustrating and will be inclined to sit back and wait to see how the property promotion evolves.Time is of the essence when it comes to implementing a property marketing campaign. If you cannot capture and encourage the enquiry within the first six weeks of the marketing campaign, it is likely that the property enquiry will slow and diminish. That is why most of the marketing money is spent at the front of the campaign rather than being spread across a lengthy period of time.The techniques for selling commercial property are the methods of sale and here are the four main methods consider:Selling a property at a price tends to be the preferred method of sale for many vendors. The vendor scan set their price at the beginning of the campaign with some margin for movement in negotiation. This therefore removes the threat of the unknown when it comes to price establishment. Unfortunately a property that is taken to the market by this method will usually take time to sell as there is no urgency in the sale process. The buyers can take the time and look at a number of properties before they will make any offer on the subject property. Overpriced properties may not even get an offer.
Selling a property by auction is more desirable when it comes to momentum and encouraging buyers to act. It should also be said that not all properties auction well. The best properties to take to auction are those that are attractive and in demand. An unusual property with limited buyer interest should not be taken to auction. As part of the auction campaign it is wise to structure a vendor paid marketing package that comprehensively promotes the property into the target audience. Normally this would be a vendor marketing commitment of about 1% of the expected sale price.
Selling a commercial property by tender is quite common. Like the auction process, the tender method allows for a time based method of sale. The advantage of the tender method is that the tenderers do not know who else is partaking in the tender process and what the other bids are. From a seller’s perspective, the tender process allows them to have significant control through a time based method of sale. Ultimately the seller does not have to accept any of the tendered prices or the terms of the tenderers. Normally it is the case that the seller will set the terms and conditions of the tender process. Any tenderer that steps outside those conditions will be classed as an noncompliant tender and would not normally be considered in the final assessment of tenders.
Selling by expressions of interest is a process that applies to unusual commercial properties. They may be the properties that have limited buyer interest, or have an unusual buyer target market from outside the normal location and area. That may be because they are unusual by way of price, improvements, location, or property usage. Expressions of interest are usually sourced and advertised over a fixed time period and marketing campaign. At the end of the time frame, the expressions that have been lodged with the vendor will be separately assessed and could be quite variable when it comes to the terms and conditions that will be acceptable to the vendor. Under the expressions of interest process, the vendor has greater flexibility to negotiate with a number of parties until such time as satisfactory terms and conditions of contract can be finalised.One method of sale that is not documented here is called a sale at ‘no set price’. It is a sale process where the price is negotiated between the parties. It is a useful process with the vendor really does not know how much they want for the property and would like to see where the price starts and ends. It is also a common method of sale where the property is sold off market and confidentially. The agent can bring together two parties and take them through the price negotiation and completion process.

Commercial Property Managers – Keys for Landlords in Choosing a Property Manager Today – Commercial Property

When it comes to managing commercial property today, there is a huge difference in the services and skills of the property managers available. Unfortunately many landlords choose property managers based on fee. Given the high value of commercial and retail property, this can be a very bad move and degrade the performance of the property over the long term.Low fees typically mean poor management processes, lower net income, and higher vacancy factors. You get what you pay for today in management services.Commercial Real Estate Agents that provide low fee alternatives to attract new management appointments usually do one or more of the following to compensate for the low fee:
Employ inexperienced staff to manage property that deserves better
Employ junior staff to do the job that should be done by more experience people
The agency principal has little if any idea about commercial and retail property management systems
Have not employed specialized people to take on facilities and maintenance issues
Load the property managers with far too many properties and tenants for the job to be done correctly
Do not give true and accurate service at month end, hence providing unchecked or inaccurate income, expenditure, lease, maintenance, and budget reports.
Have accounting and lease management systems that are not optimized for the special property type.
Have little in the way of emergency response systems for maintenance failure out of hours
Have little or no professional plan to optimize lease occupancy and lower the vacancy threat for the landlords that they act for
When it comes to choosing a commercial or retail property manager, the landlord should give due regard to the following:
The experience of the individual property manager with the property type concerned. Meet with the potential property manager to ascertain what experience they have with the property type.
The financial control systems of the property management office in handling income, expenditure, tenant leases, and rental negotiations. There are many computer based systems for this. Importantly the system has to match the needs of the landlord.
The knowledge and experience that the office has of the managed property type will be critical. Does the office have leasing support teams to back up the managements with a dedicated leasing service?
The history of the office and its management staff in providing proactive strategies and solutions to complex lease challenges and vacancy factors should be explored.
Experience in optimising tenant mix matters and choices should not be forgotten. The income of a property has to be protected and set to the plans of the landlord.
Managing commercial property is not an experiment. Landlords deserve the best managers providing the best service; on that basis a fair and reasonable management fee should be paid.The best time to pick up new managements and landlords is at the time of property purchase. A proactive Commercial Property Agent can do this easily and grow the income opportunity from new managements over time.