Know Your Buyer to Market With Intent
May 24 2022
Before taking your commercial asset to market, it’s crucial to understand who you are selling to and ensure that you have the right marketing strategy to reach those buyers.
In today’s video, we consider where our buyers come from for various commercial asset classes and how to use that information to guide your marketing.
Different commercial assets will have varying buyer pools. For example, at the moment the industrial asset class will have a larger buyer pool than both retail and commercial.
For tenanted investments, the buyer pool generally ranges based on the asset value. The lower the asset value, generally the larger the buyer pool will be. As you move up into higher price categories, the buyer pool shrinks.
Regardless of the buyer pool size, our main prerogative throughout a marketing campaign is to both understand where the likely buyer will come from and ensure we get the best return on investment for that marketing strategy.
Last year Team Grbcic sold 40 commercial assets. Of those 40 sales, 65% were sold to interstate buyers and a further 50% of those purchased the property site unseen.
When taking a commercial asset to market, it’s really important to understand and have these statistics available so you can track the market and track the source of current enquiry.
In light of the strength of those interstate purchasers, it’s really important that your asset is presented to a level where buyers are comfortable to purchase site unseen.
This comes back to ensuring you have the correct due diligence prepared. You can learn more about due diligence in this earlier video.
To recap, ensure that you’ve identified the right buyer pool and that you have the right marketing strategy to target those buyer pools throughout your campaign. This will create enough competitive tension to achieve the best possible price in the current market.
If you have any further questions on this topic or would like any advice in relation to your commercial asset, please do reach out for a conversation.