The commercial real estate industry is booming. According to the National Association of Realtors, commercial and industrial real estate sales hit an all-time high in 2018, surpassing $500 billion for the first time. Then the market took a hit in 2020 because of the pandemic. However, as the pandemic subsides, the demand for commercial real estate will only continue to increase.
Now is the perfect time to get involved in the commercial real estate industry. But where do you even start if you’re new to the game? Here are some five best practices that will help you be successful in commercial real estate.
Get Your Ducks in a Row
The first step to success in commercial real estate is to make sure you have all your ducks in a row. This means getting your finances in order and understanding what you can afford. It also means doing your due diligence on any potential property before making an offer. Would-be investors often get caught up in the excitement of a deal and forget to do their homework, only to find out later that the property isn’t worth nearly as much as they thought it was. So take your time, research, and ensure you know what you’re getting into before signing on the dotted line.
Know Your Market
The second best practice for commercial real estate success is knowing your market inside and out. This means understanding things like demographics, local economic conditions, and trends within the industry. Having this knowledge will allow you to more accurately assess a potential property’s value and its potential for generating income. It will also enable you to target your marketing efforts more effectively, which leads us to our next best practice.
Develop a Marketing Strategy
A good marketing strategy is the key to success in commercial real estate. You need to let people know about your available properties and why they should choose to do business with you. There are many different ways to market properties these days. Here are some of your best options:
Social media is your best option to reach the most people possible. Most Americans are on some social media platform, making it the perfect place to market your properties. You can use platforms like Facebook, Twitter, and Instagram to reach potential tenants and buyers. Make sure you’re using high-quality photos and videos and writing compelling copy to capture people’s attention.
Another great way to market your properties is through online listings. Websites like Zillow, Trulia, and Realtor.com get millions of visitors each month, many of whom are looking for commercial real estate. By listing your properties on these websites, you’ll be able to reach a large number of potential tenants and buyers.
You can also use traditional media outlets like newspapers and radio to market your properties. This can be a bit more expensive than online marketing, but it can still be effective.
Marketing is crucial if you want to get tenants for your commercial property. But it’s not the only best practice you should follow.
Hire Someone to Manage It
Most owners of commercial real estate don’t end up managing them. Hiring a commercial property management firm is one of the best ways to ensure your property is well-maintained and generates income. They will also be able to handle things like marketing and tenant relations, freeing up your time to focus on other aspects of your business.
Another best practice for success in commercial real estate is building solid relationships with other professionals in the industry. These relationships can provide valuable networking opportunities, help you stay abreast of industry news and trends, and even lead to deals down the road. Here are some ways you can build relationships in the industry:
Join a Professional Organization
One of the best ways to meet other commercial real estate professionals is to join a professional organization. The National Association of Realtors is a great option. You’ll have access to educational resources, networking opportunities, and more.
Attend Local Events
Another great way to build relationships is by attending local events. Many cities have commercial real estate groups that host regular events. These events are a great way to meet other professionals and learn about the latest news and trends in the industry.
Be Involved in Your Community
Giving back to your community is a great way to build relationships with others, including commercial real estate professionals. You can get involved in many ways, such as volunteering for a local charity or serving on a board or commission.
So there you have it—five best practices for success in commercial real estate. If you’re considering getting involved in this exciting industry, now is the perfect time to do it! Follow the tips above, and you’ll be well on your way to success.