Local Selling Tips

Prepare Yourself for Action

• While residential and commercial are similar in many ways, receiving the Certified Commercial Investment Memberdesignation through NAR will equip you with what you need to know in order to negotiation commercial leases with finesse and confidence. Certification also demonstrates your competency to potential clients.
• After receiving your certification, seek out a mentor who is established in commercial sales. Shadow this person or ask to co-list a few properties so that you can learn the ropes.
• The appraisal process for commercial is quite subjective, which can lead to a lot of frustration for veterans of the residential industry. Familiarize yourself with the process so you and your clients can get the most out of the experience.
• Gather all of the necessary documents for a property before listing it or presenting it to a client. Recent documentation will give prospects the data needed to secure a preliminary mortgage and hop right into due diligence and closing. A few documents you may want include are: the rent roll, previous appraisals and environmental studies, a copy of title deed, permits for any recent site alterations, and copies of previous leases, utility bills and tax information.
• Commercial real estate generally has slower ebbs and flows than residential. Don’t become discouraged by the slower pace of business. To make it through the lean times, keep a few residential properties rolling through your listings.

Prepare Your Clients

• Believe it or not, location may be even more important for commercial clients than residential clients—think about how much rides on the success of a business! Nabbing the perfect space for a client requires staying on top of new listings, scouring the area for ground-up developments, and being sure that your client is prequalified and ready for action when the perfect property presents itself.
• Consider if a pop-up shop is right for your client. Pop-up shops offer a preview of the sales environment at a property without the commitment of a long term lease. Though the market has recovered significantly since the pop-up heyday, there are several owners who will entertain short leases if they feel it could ultimately help fill the vacancy long term.
• If your client has experienced commercial success in the past, expandability should be a priority for the new commercial space. Successful businesses soon outgrow their homes. Changing locations could put the business at a disadvantage.
• Neighboring businesses can make or break your client’s dreams. When seeking the ideal space, remember that pricing, square footage, and customization are only the tip of the iceberg. Explore spaces whose neighboring businesses are compatible with your client’s company culture and customer base.
• Get brownie points with your client by negotiating the right to sublet the space. This could be a huge lifesaver (and money saver) if the client’s business doesn’t thrive.