Commercial real estate space is a completely different world from the residential market. It’s more complex, requires a knowledge of the market, an understanding of what to look for, and how to tell if a property owner might be ready to list their space. By watching out for these 3 market trends, you can better identify a potential prospect ready to sell their commercial real estate building.
#1. New Construction
As areas develop and grow, newer and better things often replace or out shine the older ones. In these instances, property owners understand the competing market and they anticipate that current tenants may want to move into a newer space. As new buildings begin their construction, current owners of commercial real estate space may begin to consider selling their building before their tenants move.
It’s important to note that as an agent, you need to be aware of upcoming construction before it begins. Once construction starts, many potential buyers will be wary of taking on an existing space when a newer one is coming. So make sure you stay in touch with local authorities and other local construction companies to get the scoop.
#2. Area Sales
As you know, area sales can greatly affect the timing of when and why a seller decides to sell a building or at least consider it. If a commercial real estate space sells particularly well, another property owner might want to take advantage of the comparable sale and hot market. This will allow them to receive a better appraisal value when trying to sell to a potential buyer. Another reason area sales are important is because it shows the area has interested buyers, especially if the building sold at a good price. Current property owners may want to take advantage.
#3. Shifts in Occupancy
Whether shifts in occupancy are for the better or worse, it often leads to a sale of commercial space. For cases where the space is completely filled with tenants, property owners can monetize by selling the building at a higher value since a potential new owner already knows it has current tenants.
On the other hand, when buildings become vacant, most property owners cannot afford holding on to the building due to costs associated with owning the space. This may include repairs or maintenance. As a result, vacant or low vacancy properties are no longer affordable and owners are forced to sell.
Finding Motivated Sellers
If you’re an agent looking to find motivated sellers, consider watching out for these trends and try to also think like a commercial real estate owner. What would motivate you to sell and why? Whether property owners are looking to sell due to fear or looking to cash in while it’s good, you’re ready to jump in and help.
With ProspectNow’s predictive analytics, along with being aware of these market trends, you can find the property owners most likely to sell or refinance. Our product provides phone numbers, building information, and more on over 30 million commercial tenants. If you’re ready to step up your commercial real estate game, contact us today and let’s talk about how we can help guide you to both properties and key decision makers.