Developing an Effective CRE Marketing Platform for 2020/2021
Investment sales declined almost 70% in the second quarter of 2020 compared to the year prior, down to $40.2 billion. Now, as we enter into Q4, property owners are focused on recouping these losses. However, many property owners are at a standstill, uncertain of which next steps to take. To aid in this process, we identified one key element investors should focus on as we proceed through 2020 and into 2021: Their marketing plan.
Here are some marketing tips investors should consider moving forward:
Market Spaces as Move-In Ready
Due to government changes, uncertain pandemic predictions, and an upcoming election, most tenants moving into new spaces, especially those looking for under 10,000 square feet, are making last-minute decisions and looking for short -term leases (6 to 24 month). Many of them had employees transition to working at home and are looking for their temporary solution until they can determine a long-term plan.
To accommodate tenant demands, landlords need to have spaces move-in ready within 30 days after taking their property to market.
A similar pattern was seen between 2014 and 2016. At that time, tenants were looking for readily available spaces. By providing new carpet, paint, millwork, offices, kitchens, conference rooms, landlords could charge higher rents – Our team averaged 15% higher rents, with construction management 70% less intense.
In addition to providing a solution for clients during these unprecedented times, a finished space also helps market the available space and minimizes negotiations with the tenants. It eliminates confusion on what the final product will look like.
Develop an Effective Marketing StrategyToday, there are over forty listing services that allow landlords to market their available real estate. With the immense availability of information to consumers, landlords must permit additional time for potential clients to weed through their options and digest all available information. The solution: Pre-market the listing. Landlords should consider the following:
- Differentiate your building. Office space has become a commodity, so landlords must identify what their competitive edge is.
- Define the details. Properties marketed as 5,000 to 20,000 square-feet or at a rental rate of “TBD” will often be overlooked. Transparency will increase interest in the available space.
- Conduct a comp analysis. Market rents will be based on recently leased or sold comparables. However, these comparables are not so simple to get, as landlords and agents are reserved in sharing this information. Agents can help provide this information, which is essential to maximize return.
- Market the property as it is. Don’t get creative. If you are listing office space, market it as office space. The previous trend of selling older buildings under the marketing spin of “creative office use potential” will deter interested parties.
- Pay for professional marketing. Your marketing brochure will be a clients first glance at the available real estate. A poorly executed marketing strategy can result in a financial loss – Not only will fewer potential parties engage, but they may be more aggressive in their negotiations. Therefore, pay for the professionals to complete the following:
- Photos: Seek out a photographer with a good camera, photoshop, drone, and video capabilities.
- Graphic Designer: Find someone who creates quality maps, floor plans, and potential renderings.
- Content Writing: Focus on developing straightforward, concise content that will increase your audience’s attention.
- Identify your target list. Identify a list of businesses (SIC codes) and executives that should be introduced to the property.