Commercial real estate agents and brokers need to keep abreast of the changes in the real estate market. Given that the performance of an investment property is underpinned by the quality of the tenant and the lease documentation, you find that the best real estate brokers are those that understand both the leasing and the sales process at a high level.
Most particularly, and with due regard to the current market, undertaking a quality lease with a new tenant will set up the property for better performance over time. It will also make the property easier to sell when the landlord chooses to do so. A great lease means a great sale to an investor.
So keeping in touch with your local property market is essential if you are a real estate agent or a real estate broker. Certain pieces of information need to be tracked and recorded so that the negotiation that you eventually undertake with the landlord and the tenant can be supported by market knowledge and evidence of other deals recently completed.
So this is a list below of the key elements of market intelligence and information that you need to track.
Monitor the prices and rentals of properties by property type and location.
Understand what properties are achieving per square metre or per foot.
Know why businesses and investors like to buy or rent property in a particular location.
Know what the local zoning of property in key locations will allow.
Track the approval processes of any new property developments and constructions with the local planning or building authority.
Understand who are the recent precinct tenants and buyers.
Understand what leases will be expiring in your area in the coming two years.
Tack the rental rates per square metre or per foot and know what property types are considered attractive to tenants.
Keep in contact with all the local businesses who may be seeking to relocate in the future.
Know the businesses that are expanding or contracting, or may have a future need to do so. Any articles on the internet or in the media about particular businesses are worthwhile checking out for impact on the occupation of property.
Monitor the location of any unsold or vacant properties, and the time that they have been on market. Details of the prices and rentals that these properties are asking should also be tracked. Lengthy time on market simply means one of two things, the property is overpriced or the property has limited target market of purchasers.
Monitor the major properties in the area for any potential change.
Talk to the local businesses on the street by street basis each day. Get to know the locals.
And so these are great rules to incorporate in your gathering of market information. You need this information when you are undertaking a negotiation; it is hard for a landlord or a tenant to dispute knowledgeable market evidence.
The easiest way to gather this information is through daily contact with the occupants of properties in the targeted area, and regular systematic cold calling. In this way you will generate more of the quality listings that you need.
