How to Prospect For New Commercial Real Estate Listings

Any Real Estate Agent or Broker who wishes to have a successful career in commercial and industrial real estate must regularly obtain marketable listings. Listings are the agents “stock on the shelf” and your income now and in the future depends on the quality as well as the quantity of the listings that you obtain. The more listings that you have the more buyers and tenants you will attract. This makes the deals all that more easy for you. More listings mean that you dominate your market and lessen the impact of your competition.

In the commercial and industrial property, listings commonly may include:

  • Land that is suitable for commercial, industrial or retail development
  • Commercial, industrial and retail buildings that are for lease
  • Businesses that occupy premises from which they serve and supply their markets
  • Commercial, industrial and retail buildings that are for sale to owner occupiers or investors both large and small

Developing a Client Base

The secret of success in commercial and industrial real estate is to have your own client base. Those clients who work comfortably with you and who respond positively to your advice in relation to their real estate requirements are the clients you need to develop. As it is the clients who pay your fees, and not the tenants or buyers, they are very important people in your business life and it is essential that you represent yourself strongly to them at all times. As these people and organisations readjust their property portfolios to meet their emerging real estate requirements, they will continue to provide you with listings. In addition, if they are satisfied clients they will refer you to other business leaders, friends and family, and so provide you with more business.

Knowing the Real Estate Market

To provide effective advice to prospective clients it is essential that you know the market – commercial, industrial or retail – that you are involved in and that you have detailed knowledge of the geographical area in which you operate. To do this effectively you will need to:

  • Canvass your territory constantly according to a plan and become well known to businesses and people in the area
  • Know every property that is for sale or lease in your territory
  • Maintain a list of property transactions that occur and have occurred in the last 3 years
  • Keep an eye out for private transactions by property owners
  • Involve the management of your office and other team members with what you are doing
  • In addition, you should understand the factors that motivate companies in your area to move to other space, and you should be aware of the forces that encourage investors to buy and sell in your area or precinct.

WHAT MAKES A SUCCESSFUL AGENT OR BROKER?

So what makes a successful agent or broker from the client’s perspective, and someone that the client wants to do business with and through? It is an interesting question to ask from a clients perspective, but history shows that the factors which stand out as being of prime importance to clients are the agent’s knowledge of the market and the quality of the advice given. The negotiating skills of the agent and the ability to act quickly are also important and rank highly. Adherence to client instruction, property marketing skills and confidentiality were seen to be of slightly lesser importance.

It is clear from this analysis that the factors which are going to have a vital influence on the successful listing of a client’s property are knowledge of the market and the quality of advice. Owners are looking for agents and brokers who know the marketplace and have readily available records information about companies and investors that are looking to make immediate decisions on properties they require, own, or occupy. Your clients want an agent who will immediately bring a listed property to the attention of such people.

So, at the point of listing, being able to communicate effectively with the owner about the commercial and industrial market place and the prospects that are available on your database could certainly lead to a successful relationship and hopefully an ongoing one.

The Role of Sachet Filling In the Commercial Industry Nowadays

The use of sachets has dated back more than 500 years ago when people placed spices and essential oils in linen or silk bags to keep them from staining clothes. Eventually these small bags were called sachets. In today’s commercial world, the use of sachets forms an important aspect of various businesses. However, these sachets were more like pouches which are still in use today. Go to different grocery stores and you will see that almost all products are now available in small packets. Soaps, detergents, food additives, chemicals, dyes, cosmetics, and many more products are available for various customers.

There are many reasons why manufacturers use sachets. Production of certain products may require them to be available in a wide range of amounts or sizes because consumers buy them in different quantities. A homeowner may only require small pouches of shampoos while an owner of a beauty salon may require gallons of such. Sachets are ideal in certain situations when production of a product in large containers is downright impractical for economic or commercial purposes. For instance, ketchups for burgers or fries at a fast food stop are packed in sachets for consumers who take out food.

Sachets are also ideal when introducing a new product into a prospective market. Free samples of products may be given to a huge number of people for free trials and these products better be packed in small plastics. The goal of this is to make more people know about the product so they will go to the stores and find it. Hence, mass production of small sachets for marketing purposes is one of the most efficient ways to gain customers.

In sachet packaging, there are different relevant elements. As in container filling, it is important to consider the durability of the packets, considering they serve as the container of the product. Most sachets are made of two sheets of plastic that are sealed on all four edges to ensure the contents are locked inside. The sachets should be designed to resist pressure and that means they should be able to handle some pressure before bursting. Toughness of the sachet material is an issue with substandard packets and pouches. Manufacturers are concerned that products are shipped to far areas, so they must therefore be able to withstand the stress accompanied by transportation.

It is also vital to choose the right kind of material for sachet. Today’s health professionals are concerned about the growing number of plastics with toxic contents. Harmful chemicals on containers and packets may cause health problems in the long run. This is also an issue with bottles, cans, and packs used in packing food products. That is why material inspection for sachets is necessary. Sachets for various products should also be made of tough material that can withstand different forces, as mentioned above. However, the material should not be too tough that it takes forever to open it. Material compatibility is also an issue especially with chemical products. Chemical suppliers should ensure that the sachets they use for certain chemical liquids and powders are made of inert material.

Many manufacturers contract sachet suppliers instead of purchasing their own equipment because the latter option may require additional manpower who can handle sachet filling, which after all is not a simple task to carry out. Manufacturers just contract sachet fillers to handle the job for them so they don’t have to handle the job themselves. Look for sachet fillers who have been doing sachet packing for a long time. When you are looking for sachet packers or suppliers, look for those who can meet your specific needs. For instance, some suppliers specialize in chemical filling while others specialize in cosmetic products. You have to ask the sachet supplier what services they can offer.

How the Recession Has Affected the Commercial Construction Industry

For some time, I have asked myself (and others), “What was so great about The Great Recession?” This economic crisis has been deemed by the International Monetary Fund (IMF) as the worst world-wide recession since World War II. Its impact has been felt in nearly every industry imaginable, and particularly in the construction industry. It ran its course for 18 interminably long months, between 2007 and 2009; the worst period occurred at mid-year, 2009.

How did it affect the commercial construction industry and what has/will be happening nearly 5 years after the official “end” of the Great Recession?

What happened?

The construction industry is accustomed to cyclical changes but the Great Recession was hardly a typical downturn or cyclical change. No sector of the construction industry was spared from the harsh impact of the Great Recession; not residential, commercial, industrial, or heavy and civil engineering.

One aspect of the recession that is not often mentioned is that the cyclical boom of the construction industry was followed directly by the recession, leaving a large glut of residential and commercial real estate on the market.

As the recession deepened, homeowners were defaulting on their homes, others were not buying homes as they had planned, and investors were being extremely cautious in financing new construction projects.

2012 – 2013 was predicted to be a period of growth and non-residential construction activity was expected to continue its recovery. Once, again, there were recovery delays, fueled in part by government and financial institutions:

    • A federal budget sequester resulting in scaled back government spending.
    • A federal government shutdown.
    • Credit restrictions placed on construction projects, home loans, loans in general.
  • Increasing long-term interest rates based on expectation of the government reducing its stimulus program.

Those factors, and the extremely slow recovery of the world economy, certainly had a direct and negative influence on the construction industry.

Moving into 2015

So what is the state of commercial construction in 2014 and beyond? Recovery is happening, but not at an increased pace. Factors that (according to industry observers) influenced growth in 2014:

    • Weather-related delays on projects at the start of the year.
    • Ongoing sluggishness in the institutional market and lowered construction spending projections.
  • Financial institutions continued their restrictive lending practices.

Is there any good news? Yes! Let’s look at some of the more favorable changes in 2014 and some positive indicators going into 2015:

    • Some easing of lending restrictions; loans rose 4 percent in the second quarter of 2014, most of it related to the commercial real estate industry.
    • Commercial construction projects are rapidly increasing in several regions of the U.S., particularly in Texas (Houston) and the southern region in general, and New York (Rochester and New York City), Massachusetts (Boston), and Louisiana (New Orleans).
  • Consumers are “cautiously optimistic” and spending is up, as is the increase in jobs.

The commercial construction industry was, and continues to be deeply affected by the Great Recession. But industry watchers, like consumers, are cautiously optimistic (with more emphasis on cautious than optimistic) that the industry is slowly and steadily moving forward.