Targeting the right buyer’s group is perhaps the most critical facet of achieving a high price for commercial properties, an expert has advised.
Having an extensive understanding of the target purchasing group and tailoring a detailed marketing strategy towards these buyers and their needs is the best way to ensure a commercial property achieves its maximum sale price, according to Kollosche Commercial agent Adam Grbcic.
Mr Grbcic stresses that no two buyers are the same and outlines the different parameters that dictate which buyers express interest in certain commercial propositions.
“Different commercial assets will have varying buyer pools for those particular asset classes for instance, in vacant possession properties now the industrial asset class will have a larger buy pool than both retail and commercial in terms of tenant and investments,” he said.
He outlined how price almost always dictates the make-up of buyer’s groups, with lower-priced properties naturally attracting more potential purchasers than their most expensive counterparts.
“The buyer pool generally ranges based on the asset value. The lower the asset value generally the larger the buyer pool and as you get to a different price category that buyer pool shrinks.”
He believes the main goal of 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”.
Of the 40 commercial sales sold by the Grbcic team last year, 65 per cent were sold to interstate buyers and 50 per cent of those purchased the property unseen.
Mr Grbcic said that such statistics are crucial “when taking your commercial asset to market”. Because he feels “it’s really important to understand and have these statistics available so you can both track the market and track the source of where the current inquiry is coming from”.
He then stated that his company’s sales figures highlight the importance of strong marketing, as it ensures your asset is present in the best possible manner, which then attracts further interest from buyers, even when they can’t be present with the asset.
“In light of the strength from the interstate purchases it’s really important that your property’s presented to a level where they’re comfortable purchasing [site] unseen,” he said.
He believes these results are built off having “the correct due diligence material and pack put together”. Mr Grbcic affirmed that this then helps ensure that you’ve targeted the right buyer pool and developed the ideal marketing strategy for those buyers to “ultimately create a situation where you’ll have competitive tension and ensuring that the asset gets the best price in the current market”.
Never miss a beat with
Stay across what’s happening in the Australian commercial property market by signing up to receive industry-specific news and policy alerts, agency updates, and insights from reb.
Subscribe to reb Commercial: