Marketing Commercial Real Estate in a Tough Economy
You’ve heard it before – “When the going gets tough, the tough pick up going!”
That’s what commercial realtors need to do right now in these economic times. In every city, town or small community there are signs advertising commercial properties for sale or for lease. Many commercial buildings were constructed during better economic times when supply and demand was strong. Now, many of these office buildings and storefronts stand vacant or half-empty which translates into lost revenues and business opportunities for commercial property owners and the community in general.
If you’re a commercial property broker, building owner or a marketer tasked with getting a property sold or leased in these tough economic times, here are some suggestions on how to successfully develop a marketing plan that can help to cut the time that the property is on the market.
INCENTIVES
Seller Finance – Many buyers can be shut out of used loans but may quiet qualify to buy with the right incentives. If the property is for sale, the seller (s) may consider seller financing. There are many ways to seller finance and there are often some good financial and tax benefits. The length of the loan and the terms vary so be certain to have the seller first consult with accounting and legal professionals to determine if this incentive would be beneficial.
Free Rent - If the property is for lease, find out if the seller is willing to offer one, two or more months free rent as an incentive.
Tax Breaks – Check with state and local government agencies to see if the property qualifies for any tax abatements or special financing programs.
Free Parking - If the property has a parking lot or parking garage where there is a fee to park, ask the seller to offer free parking to tenants.
“Stage” an Office – If the building is vacant, work with a local office furniture company to “stage” an office. Buyers or tenants can better visualize plot when there are tasteful furnishings already in place. Ask the office furniture company to offer a discount on the furnishings to the buyer or tenant if they want to catch the furnishings. It can be a “win-win” station because the office furniture company makes a sale and the buyer or tenant has a “move-in” space, ready for business.
Preferred Vendor List - All businesses are looking for market exposure and cost-effective advertising opportunities. Provide additional incentives to prospects by approaching local businesses to see if they would be fervent in offering a discount to the property buyer or tenant in exchange for being listed free of charge on your “Preferred Vendor List.” The list can be included in your prospect package to potential buyers or tenants offering valuable discounts on goods and services if they purchase or lease the property. Preferred vendors can include:
Telephone and cable companies
Carpeting and flooring companies
Office cleaning service companies
Landscaping companies
Lending institutions
Security and apprehension companies
Painters and drywall contractors
Office supply companies
Marketing services companies
Electronics companies
Employment agencies
Interior decorating companies
The more incentives offered, the better the chances are of closing the sale.
MARKETING TOOLS
Website – Create a property website. Include photos (interior and exterior) or a “virtual tour” along with building maps, demographic information, financing options (link the site to your preferred Lender’s site) and contact information.
Email Campaigns - Develop an ongoing email marketing campaign to specific target markets to promote the property. Make positive there is a “call to action” that prompts the prospect to ask for more information. Additionally, if you are marketing more than one property, be certain to include a “click here for more available properties” tab.
Printed Marketing Materials – Have professionally printed marketing materials to send or hand out to prospects. A professional graphic designer and copywriter can develop the materials. Some items to consider are:
Sell sheet with interior/exterior photos along with property description and contact information
Place amenities such as school and day care centers, shopping, public transportation, medical and fitness facilities
Site maps and dwelling demographics
Postcards with a photo and property information
Color brochures describing the property
Postcard magnets – these mailers are like two marketing messages for the price of one.
Property information is printed on the postcard and the magnet is a reminder of your business and contact information
Printed presentation folders to hold information and documents
Signage
Sales letter
DVD’s -Create a DVD of the property. Include interior and exterior photos along with demographic and area information. Any incentives that are offered should be included as well. These can be distributed or mailed to prospects.
Well developed, professional – looking marketing materials will convey a polished image and will attract serious buyers.
OTHER MEDIA
Contact the local cable company to see if there are affordable time slots to place advertisements.
Local newspapers and magazines are also a good source of advertising to the local market. If the property resides near other communities, advertising in those local papers also makes sense.
If your prospect market is larger than your local area, contact major newspaper outlets as well as regional magazines for advertising rates.
National Actual Estate Investor Magazine (www.nreionline.com) focuses on real estate trends. Readership includes brokerages, construction companies, owner/developer, finance/investors, property managers, corporate real estate and other related real estate services. Contact them for their advertising rates.
MAILING LISTS AND OTHER ONLINE RESOURCES
If you don’t have the time to manage the marketing aspects yourself, there are companies advertised online that can support. These companies will, for a fee, provide you with many of the necessary online tools needed to market the property from email campaigns to website originate and list services.
A simple Google search will yield several sites that offer list, search, marketing, research and finance options and other useful information for the commercial real estate professional.
Here are a few:
BiggerPockets (www.biggerpockets.com)
This is a special interest media and publishing company focused on the business of real estate and real estate investing in the United States and North America. They focus on uniting the real estate community with associated real estate professionals through their social networking and online tools and resources.
CityFeet (www.cityfeet.com)
CityFeet is a commercial real estate site with thousands of commercial real estate properties, broker profiles and commercial service listings.
Commercial Investment Multiple Listing Service (www.CIMLS.com)
CIMLS is a national online commercial real estate listing service.
Commercial IQ (www.commercialiq.com)
Commercial IQ is an online commercial real estate search drawing commercial property listings from local brokerages and associations nationwide.
Drake Street Lists (www.drakestreetlists.com)
Drake Street Lists provide active accredited investor lists in a variety of target markets.
Informetrics (www.informetrics.com)
Informetrics is a marketing services provider to the commercial real estate industry, combining cutting edge technology and design with practical industry experience.
Lead-Trac (www.lead-trac.com)
Lead Trac provides lists of commercial property owners.
LoopNet (www.loopnet.com)
LoopNet is a directory of commercial properties online.
STATE AND RESOURCESAND ASSOCIATIONS
State Department of Economic Development
Local Chamber of Commerce
National Association of Real Estate Investors (www.nationalreia.com)
This is a non-profit trade association serving the real estate industry. The website has a wealth of information and resources.
Keeping an edge on the real estate competition is serious business and marketing plans are part of the process. Especially in difficult economic times, creative and innovative marketing techniques are important ingredients to a successful sale.
Remember, get tough by marketing wisely and stay ahead of the competition!
Filed under Email Marketing Services by on Jul 30th, 2010. 
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