the importance of trust
When you are looking to lease or sell your commerical property, you might be tempted to register with multiple commercial real estate agents. The reality however, is that it can actually do more harm than good to your commercial property investment opportunities.
In this article we will be looking into a few reasons why listing with a sole agent will provide you with the best return on your investment.
It goes without saying that if you list your commercial real estate property with multiple agents, they will set out to compete with each other. This might sound like an exciting prospect, but instead of forcing them all to work harder to achieve your goal, it can actually have the opposite effect.
By listing with multiple agents in commercial property, you remove a key strategy in the property sales process; a strong relationship between yourself and the agency team.
The success of the sale of your property relies on you and and your agent working together to navigate buyer interest. But, if you split your time between different agents, this can prevent you from building a strong one-on-one relationship.
you may inadvertantly dilute your potential buyer competition
If you are an expert seller or buyer in the modern real estate game, you will know that the buying market is where the deal is made. When you list with multiple agents, your property will be listed numerous times on portals such as realcommercial.com.au and commercialrealestate.com.au. People often make the mistake of thinking more exposure leads to a greater number of enquiries and real estate sales. An astute buyer will notice that there are multiple online listings for the same property. They will contact each agent to negotiate. This forces your agents into a race to the bottom, allowing the buyer to dictate the price. The agents will then put offers to you that are not in your best interest. This can lead to stress for you, with undue pressure to sell.
Exclusive commercial property listings can help you channel your opportunties in one direction. Make your agent work for you. Build trust and a relationship with an agent so that you can hold them accountable. You therefore take control when investing in commercial property by defining the terms and the conditions with regard to the sale or lease of your property.
“This forces your agents into a race to the bottom, allowing the buyer to dicate the price”
what are exclusive listings for commercial property
For an exclusive listing, you agree to only list your commercial property with one agency. Exclusive listings are a way to guarantee that your property will be sold or leased for a top price. They also lesson your workload as you will only need to cooperate with one agent rather than multiple agents.
With one agent responsible for the selling or leasing your property, the owner has ensured that the agency is going to work hard to achieve the highest return possible. This is a benefit to both you as the owner and the sole agent.
The agent has a focus and the client knows they are getting a higher level of service compared to an open listing. An open listing will only be marketed and quoted by any agent if a clear match is possible with any property inquiry.
When you sign an agreement for an exclusive listing, the length of time the agent has to sell your property will often be mentioned.
advantages of exclusive listings in commercial real estate
The main advantages of Exclusive Listings are as follows:
- You will get to know your agent and create a relationship with them, knowing that they’re serving your best interests.
- A single point of contact for enquiries and feedback on the progress with the sale or lease of your commercial property investment.
- The agent will undertake all required duties, including marketing and property inspections.
- With a guaranteed commision, the agent will commit more of their time and resources to your property.
- The agent is unlikely to compromise as there is no other competition from other agents. The agent will not pressure you to take the first offer. This results in a better price for your investment.
- The agent has more time to dedicate toward finding you the best deal. They can be selective with which offers they will bring to you.
- Shorter time that your property will be on the market.
action plans when investing in commercial property
The agent should provide an action plan. By setting an action plan with appropriate deliverables, you have the means to measure the performance of your agent. If the agent under-performs based on your expectations, allow them to explain why. A good agent never gives excuses, they offer alternative solutions! If the agent fails to meet your expectations based on your agreed action plan you should seek to find one that can.
what is the safest investment with the highest return
Commercial property is one of the most popular investments today, as it is a fairly safe and profitable investment. Commercial real estate investment has many advantages over other ways to earn money. Many people however, find it difficult to make that decision because they have very little information about commercial real estate investment and what it takes to make good investment decisions.
COVID-19 has had a varied and fragmented impact on Australia’s commercial property market. This impact varied dramatically across the country with different levels of restrictions between states. With the growth in technology, the needs of tenants have changed dramatically over the last few years in the office space sector. Many office workers no longer want to work in an office full-time. This has seen an increase in co-working and flexible workspaces. Workers have adapted to a mix of working from home and in the office. This trend accelerated dramatically with the global pandemic. Many tenants left commercial property and rent-collection rates fell across Australia. Rent-relief subsidies increased as landlords tried to keep them onboard. Commercial investment slowed dramatically.
Rent collection from office buildings is now returning to pre-COVID levels. It is expected that we are likely to have shorter-lease terms for commercial properties with tenants pursuing greater flexibility and protection for their businesses.
An industry that has performed consistently well during the pandemic has been the growing industrial sector. Industrial property is currently undergoing a phase of unprecedented expansion and digital transformation, driven by e-commerce.This growth has been boosted by online shopping throughout 2020 with people restricted from retail stores. Commercial investment in industrial assets is likely to rise in value with investors looking to diversify their portfolio.
Finding Commercial Property to rent or buy can be a complex layrinth of negotiators and agents.
Commercial Property SHOULD be a simple process, but the market is crowded with “Cowboys”.
You need a “full-service commercial property partner” and that is exactly what we aim to provide. We carve out our niche high-yield, low-risk investments and negotiate deals across Australia for tenants and investors. Additionally, with regular updates on new investments and business developments, we make finding your next purchase simple.