Finding a commercial real estate buyer may feel like the ultimate feat in an ever-evolving market with incredible highs and lows. Lucrative commercial property transactions can often happen before properties are listed on the market. Finding the right buyers for commercial spaces is hard work, especially if you don’t know where to start. Let’s learn how to find buyers for commercial real estate.
The obvious route is to post on listing platforms. However, this can become tedious and unproductive. Why work against the grain when you can do your work? Work for you. If you are looking for buyers to invest in commercial properties, but are unsure where to begin, look no further. Below, we will learn how to optimize your commercial investor search and land you a sale.
How to Find Buyers for Commercial Real Estate
Know your Property Buyer
Before you begin your search, it is vital to understand the different investors and their various motives. In doing so, you can narrow your hunt, saving you time and effort.
Not every investor is built the same, meaning that your buyer will not always be a corporate institution looking to add another listing to their expansive portfolio. Likewise, not every investor will be a hobbyist looking for their next purchase.
Your buyer may be a new business searching for a space that will help them expand, a seasoned investor tackling another property, or perhaps even a new investor looking to buy into a portfolio. Once you understand the different investors, you will know where to look. Ask yourself, who is this candidate?
What do they do for a living, and what is their level of sophistication in society? Put yourself in their shoes; where would they look for sought-after properties?
For example, if you specialize in retail or office, your goal is to attract an individual or small business with the intent to expand. These buyers require a much different method than institutional investors.
This is why customizing the art of your pitch is so important. Not every client is going to be responsive and easy to communicate with. You need to get them on the hook quickly; therefore, your elevator speech must be fast and sharp.
Expanding your scope is crucial. People talk, and people refer to creditable people, so talking to as many people as you can is essential to find your investor.
Join local real estate clubs; networking with owners, realtors, lenders, and bankers will be significantly beneficial for you long term. Get to know the elites in your area who have the right contacts. It will be down the road if it is not a sale now.
Most commercial real estate buyers chew on their decisions before they pull the trigger. Remember, for most of your clients. This is the biggest investment of their lives. So priming your investor is necessary.
Whether creating a professional relationship or consistently checking in, make sure you have an up-to-date pipeline to refer back to. The reason is, that several nuanced buyers are not obvious.
Commercial asset owners, whether buyers or sellers, who are doing a 1031 tax-deferred transfer, for example, are continually seeking investment properties for sale. It’s possible that your property will be used to replace the one that’s being sold.
Take a look at the renters that are presently renting commercial premises. When their lease expires, they want to purchase another home to take advantage of the tax benefits that come with owning real estate.
Residential real estate investors, on the other hand, should not be overlooked. They could decide to move up to commercial real estate one day. As a result, they may opt to exchange residential property for commercial property to diversify their investment portfolio. It’s a good idea to keep your connections warm and go outside the box while looking for a buyer.
Know your Area, Master your Niche
People want to and will buy from specialists regardless of the nature of the transaction. You must be the neighborhood’s expert. You should know your market like the back of your hand.
Keep up to date by subscribing to community newsletters, joining local groups, and attending community events. Commercial real estate is not just difficult to come by. It’s quite profitable. There is a lot of money at stake, with houses selling for hundreds of thousands or millions of dollars.
Buyers dealing with such riches want to work with a commercial realtor that specializes in their field. Knowing about recent transactions, under development sites, and market trends demonstrate your dependability and authenticity.
The more information you have, the more business owners and commercial property investors will need to work with you. The ripple effect will occur once you’ve completed one smooth and successful transaction. Use social media and consider forming a partnership with that client; trust us, that circle is one to befriend.
Use Social Media, Consider a Partnership
Selling commercial space is unquestionably about who you know and what you know. Consider partnering with another broker if you’re new to the industry or trying to break into a new niche.
Not only will your coworker teach you the ropes, but cruising on the coattails of your colleague’s reputation is also a quick way to gain new clients.
Any customer who has collaborated with your partner in the past is more inclined to trust you as their commercial realtor in the future. Twitter and LinkedIn, in particular, are fantastic tools for expanding your business.
Twitter is a simple method to post and link to pertinent articles about your company and industry. Simultaneously, LinkedIn makes it simple to link with experts who can provide excellent buyer leads.
You and your partner can come up with ideas for content to post, growing your outreach on each platform.
Regional Offices or Headquarters
Many companies want to grow, while others are thinking about moving or combining. Few of your competitors use cold calling as a strategy. As a result, you should give it a go.
A clever technique to locate a buyer for a business property offered for sale is to call the company’s regional office or headquarters directly. Another reason why perfecting your effective presentation and pitch is critical is because of this.
You will win a potential customer if you win the phone. Growing your pipeline requires instantly establishing rapport and selling someone over the phone. When that company is ready to go forward, they will recall the commercial realtor that took the risk of cold calling.
Advertise on Commercial Real Estate Databases
To discover the one-of-a-kind buyer, you must be the one-of-a-kind broker. The majority of commercial realtors select and publish listings directly on their websites.
This reduces the number of people who see your listing, lowering your chances of selling it. List the property on a business real estate database, portal, or forum instead of creating your own website.
It’s vital to locate your expertise and network extensively; yet, by publishing to existing databases, you may streamline your reach and optimize your efforts. Thousands of brokers utilize the best commercial real estate systems to make selling a property, tracking leads, and finding the appropriate buyer easier.
With the right knowledge and a bit of elbow grease, you can find buyers for commercial real estate. We’ve provided some tips to help get your search off on the right foot so that you can begin finding those potential clients as soon as possible.
Whether it means cutting back on what is wasting time or expanding into new markets, this article should provide a good starting point for anyone on how to find buyers for commercial real estate. What other ways have you found success locating investors? Let us know!
Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.
She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.
As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.