How to Choose the Best Real Estate Agent for Your Property Sale

city buildings on skyline

When it comes to selling your commercial or retail property, the buyers that you need are the ones that can act in today’s market and economy.  To find the right buyers and bring them to your sale is a skill that only the best real estate agents can provide. 

The Local Property Economy

Those agents know what the local economy and businesses are doing; it is that information that is valuable to you with your property challenge.  Choose your agents with a questioning approach regards market awareness, property type coverage, and target market penetration.

city at night
Understand your property and the local area of buildings.

So what is actually happening with investment properties in Brisbane now?   There are still buyers out there that are looking for good investment property stock; that is something with a tenant mix, stability of cash flow, and future demand.  Are you taking your property to the market soon in Brisbane? 

Consider the facts and challenges around your property and what it is worth.  If you were buying it today, what would you pay?  Would you pay a ‘premium’ or would you look for a ‘bargain’.  It sometimes pays to ask yourself those questions and put some reality into the real value that your property presents to any purchaser.

Agent Questions

Let’s go back to the ‘agent question’.  One of the most important elements of property marketing today that an agent can bring to a seller is direct access to a comprehensive database of qualified prospects.  That database list alone will help you fast track inspections, enquiry, and the right type of property offers even in the earliest stages of the property promotion.

Ask your agent if they have a database and a target market to suit your real estate challenge.  Ask them how they are going to tap into it to help you with your property requirements and investment outcomes.

How to Promote Your Commercial Property for Sale

city buildings on skyline

Marketing and selling commercial investment property today changes by location, by property type, and by the time of year.  When you decide to sell your investment property in Brisbane it pays to ask your commercial real estate agent to give you a market profile update and target market assessment.  In that way, you will know exactly what can happen when you take the property to the market.

Think about these questions:

  • Who are the right buyers for the property?
  • What are they prepared to pay?
  • Why should they buy your property?
  • When is the best time to promote your property?

All properties are different as is the enquiry that you can achieve at a particular time.  So, questions like these help you focus on the things that matter. You can find out about the local property market, the recent enquiry, the price and rent outcomes, and the likelihood of moving the property quickly at a reasonable financial result.

city buildings
Every property market is different, so ask questions.

On that basis, marketing should be individually designed for the property and the existing market circumstances.  Here are some key points to consider in selling your investment property:

  • Growth of local and regional businesses
  • What buyers are looking for today
  • When the best time to sell the property may be
  • Local supply and demand for space to occupy
  • Price trends over the last 2 years and the impact on investments
  • Rent trends over the last 2 years and the ongoing renal patterns of gross and net rent
  • Location of comparable properties in the area with which you compete.

So all of these questions help you stay on track with your property promotion. Plan how you want to sell a commercial property, and just who the local agents should be to do that with great effectiveness.

Taking the Right Course of Action in Commercial Property Management

shopping centre mall foyer

Managing commercial or retail property is not just a matter of collecting rent and fixing a broken toilet.  Today there are so many other pressures and issues that come into the process.  That is why property managers should be well skilled and experienced in the tasks of property management. 

Have you ever thought about getting another property manager to control your property investments? It can be a wise decision to take the pressure off your initial activities and then allow you to focus on the bigger picture of investment performance.

building facade
Know your property and its investment elements.

Where do you start? Here are some of the big issues that commercial and retail property managers must handle every day for their landlords and investors:

  • Rent arrears control and recovery
  • Income optimisation for the property
  • Rent review and option implementation
  • Lease interpretation and implementation
  • Property and tenancy inspections to ensure that the property is being correctly occupied
  • Maintenance budgeting and controlling maintenance within the approved expenditure records
  • Keeping the landlord abreast of current events and issues
  • Talking to tenants so they occupy with little or no difficulty
  • Vacancy management and lease strategy
  • Fitout works and controls

When any landlord or property owner is considering appointing a new property manager, the decision should be based on the skills of both the individual person and also the agency.  So many property managers really do not have what it takes to do the job to the required levels of investment today and the market.  A poorly selected property manager will be a disaster for the property owner.

Setting Your Commercial Property Price

city buildings on harbour

When you sell a commercial investment property, the price you achieve is driven by the market.  It is the buyers in the market that generate the interest and ultimately make the offer. 

Contrary to popular belief it is not the sellers or the real estate agents that set the final price.  What the sellers want for their property and what the agents think they can get are in reality an educated guess or wish based on market trends and sometimes other pricing evidence.  In saying that, the end price for any commercial property is driven by the buyers in all cases. 

Price Changes

If a sale goes ahead it is because the buyers are willing to pay the money; sure the seller has to accept that price, but without a buyer making the offer, the price for a property is just a number. At times the real estate market can be ‘saturated’ with overpriced properties. Time on the market is a big factor in any property sale. If you are ready to sell your property, then consider a ‘fair’ price, but not an ‘excessive’ one.

money on the table
What is your property price? What is it worth?

Real estate agents offer their clients real benefit to the sale process because they are working with buyers and tenants all the time.  The database that an agent has is a huge source of opportunity when it comes to selling your property. 

Database Value

The bigger and better the database, the more exposure to qualified buyers your property will have.  This massive exposure that some agents have to buyers is of great advantage to you when you want to sell the property.

At the time of putting your property on the market, find the agent with the best and most up to date database of potential buyers; it will be a direct reflection of their market penetration and territory domination.  They are the agents that should sell your property and they are the ones that will have an idea of what buyers are willing to pay in the current prevailing economy.  Make the right choice and get the best agent to help you sell your property.

How to Boost Investment Performance in Commercial Property

city buildings at night

In commercial real estate, the yield of the property is commonly referred to by investors.  It is a point of reference or standard for the property type and the location. 

Property yields in this market vary considerably as property investors focus on different property types and situations. Investors come and go from the Brisbane property market based on the ‘opportunity’ factor. That assessment will be different for many investors as they choose property types and precincts to invest in.

Always use caution when considering yields in this market.  It is notable that many yields have moved out by up to 1% due to economic pressure and changes.  There are still some good properties and investments available.

man holding eight ball

Here are a few of the key points to look at when it comes to assessing property opportunities.

  1. Strength of income is paramount. Most particularly this will come from the leases on the property.  When a lease is well structured it will underpin and strengthen the price for the property.  Look at things like rent types, outgoings recoveries, option periods, length of lease and make good provisions.
  2. Tenant and landlord covenants will feature in the lease and put obligations of occupancy performance on both parties.  For this reason, the checking of the lease before sale or purchase is high on the agenda for the experienced investors.  A good solicitor will help with the process.
  3. Physical aspects of the property and structure should always be checked by experts.  In this market, a due diligence process in any property sales and purchase is a wise move.  A due diligence condition in a contract could take some days if not weeks to be fully checked and satisfied.
  4. Occupational Health and Safety together with the elements of Essential Services and Mechanical performance on the property should be checked by experts including engineers.  Legislation in this regard can impact the property with high costs of remediation or changes to Essential Services.  Compliance is critical for the property investor.
  5. Permitted use, Zoning, and Building Occupancy Certificates on the property should be checked and related back to how the property is currently used.  What you need to know is if any breaches are existing now.
  6. Survey plans and as-built drawings should be sourced on every property purchase.  You will need these critical drawings many times in the future when tenants come and go from the property.  They are very expensive to obtain when the go missing.
  7. Location is one of the major factors in the future of the investment property, but do not overlook potential or known changes to the regional demographics and business community.  They can impact the rental and future leasing opportunity in the property.  You can have the best property, but if it is in a poor location or contracting business community, then the property as an investment will have to be reassessed.

These elements will help you consider future property purchase opportunities.

Things to Look at When Purchasing a Retail Shopping Centre

When purchasing retail shopping centres or malls, the type of centre needs to be noted as well as its location, size in the lettable area, state and condition of the property, and types of shops, number of car parks and other features such as services and amenities that would attract customers.   The property has to be relevant and friendly to the community.   The property has to attract visitors and frequent shoppers.  Look at any retail property from that perspective before you look at the rental income and the tenant mix.

Demographic factors should also be explored in the case of every retail property.  For example, how is the population distributed about the centre?  What are the growth rates and the spending power of the targeted community?  Are there any roads and highways that can direct or restrict traffic about the property?

retail shopping mall escalator

Records of turnover are invaluable in assessing past property performances, and the number of customers through the centre.  A good retail property will have leases that support the supply of turnover figures to the landlord on a confidential basis. While the tenants may have a sensitivity to doing that; it is the only ways a landlord or property manager can assess property customer visits, and just who are the successful tenants.

Shoppers to a shopping centre will shop on particular days, and that will create peaks in trade.  Have a look at other shopping centres nearby to see how they compare to the property you may have under consideration.  Be mindful of the other impact of seasonal sales and holidays on retail trade.

Know the Property Comprehensively

The turnover in a retail property can be centred on a particular type of tenant, for example, fast food and fashion.  Weaknesses in turnover can then be seen when turnover figures are categorised.  If the tenant is not a high performer in the property, then it is best to consider a change rather than let a shop location loose customer interest.  It is for this reason that a lot of landlords in larger properties will not give options when leasing premises to new tenants.  In that way, they can preserve their choices in the tenant mix.

In this market, the levels of income in the property together with the outgoings have to be well managed.  Rate of growth in outgoings and the rate of growth in rental income should also be noted.  Read the leases to get to the bottom of what has happened over recent years.  See what the leases say regards rent reviews coming up and how they can be handled.  So there is a full review process here to implement when looking at a retail shopping centre as an investment.  Are you ready for the challenge of the investment?

Things to Look at When Leasing Commercial Property

If you are a landlord in Brisbane and wanting to lease a property to a new tenant today, it pays to fully understand the leasing and vacancy competition that you are up against.  Let’s face it, tenants are looking around at everything that is available, and they are more selective in making a final decision. They generally know what the rents are doing, they know what their cost limitations are, and they can generally ‘shop around’ for the ideal vacant premises.

What’s Your Leasing Focus?

So, what are your priorities in leasing premises? What do you prefer out of the following?

  • A tenant leasing space?
  • A high rental?

It is sometimes difficult to achieve both points of focus in the one leasing transaction. A good lease with a new tenant should be a priority. A ‘fair’ rent is the best way to attract a lease and tenant arrangement. The escalation of rent over time can then be improved by a rent review strategy.

city hi rise building
Understand the leasing market in commercial real estate in your location.

Today’s property and leasing market in Brisbane provides a broad selection of vacant space to the active tenants in most locations.  The vacancy rates in the local property precinct can make your selection of rental a key part of the leasing process.  Add to this some other leasing decisions such as:

  • Lease term
  • Option availability
  • Base rental
  • Rent reviews
  • Rental type (gross or net rent)
  • Outgoings recovery

Expert leasing advice is critical here.  Leasing a vacant tenancy is not just a simple decision.  We guide our clients through some key decisions like those above so that the best lease can be created given all other property factors and pressures in the local area.  Timeliness is important in getting a property leased today.