Like any product or service, commercial real estate requires marketing tools and techniques to get in front of ideal prospective buyers. And during the disposition process, marketing is a critical step in freeing your CRE portfolio of any property you’ve identified as an unsupportive asset.
The primary objective of the marketing phase of disposition is to promote and incentivize potential developers, investors, or users to acquire the property that no longer adds value to your business.
The more effective the marketing strategy, the sooner your organization can reallocate funds to other business ventures or pay off debt.
Each phase of the commercial real estate disposition process is essential. That’s why our team of real estate experts has created this blog series, covering each stage of the process. Previous posts in this series include:
- Disposition in Commercial Real Estate: Choose Your Strategy
- Understanding the 4 Types of Due Diligence During CRE Disposition
Continue reading to learn more about the marketing process, how to identify and target the right audience, and helpful marketing tools to promote your property.
The CRE Disposition Marketing Process, Step-by-Step
To remain organized and effectively market your property to the right potential buyers, it’s critical that you follow a process. Below are four steps the Allegro Real Estate Brokers & Advisors team takes when marketing a CRE property for disposition.
- Identify prospective buyers and market test scenarios under non-disclosure agreements.
- Customize your marketing strategy based on outcomes of highest and best use scenarios.
- Use targeted advertising mediums, including print, web, databases, email, and direct mail, to reach relevant decision makers.
- Analyze market feedback and adjust your marketing strategy as necessary.
How to Target the Right Perspective CRE Buyers
To identify and target the right audience for your listed property, it’s best to consider the objective of the space.
For example, if the property will likely need to be redeveloped, it’s best to market to developers or others who will reposition the property and invest in updating the space. Here’s one example of how a manufacturing company repositioned its 1.6 million-square-foot headquarters for disposition.
If the property you’re selling is a traditional office space and you’re anticipating an owner occupant will use it for their business, it makes sense to market to other brokers who have office clients that are looking for a new space.
Other times, it may make the most sense to market to an investor. In this instance, the investor is not someone who will directly occupy the space, but will use it to make money. Sometimes investors are in the same target market as the redevelopers, but not always.
In any case, it’s best to work with your real estate advisor to determine the audience that aligns best with your property. Tip: Real estate brokers, like Allegro, often have a wide network of connections within these various audiences, making it especially easy to attract interested buyers.
7 Common CRE Disposition Marketing Tools
Similar to other products and services, marketing tools allow commercial real estate owners to position the property in front of the appropriate audience. Below are some of the most common marketing tools used in disposition marketing.
- CRE marketing flyer. Property flyers typically include photos of the property, a location map, a list of property features and meaningful amenities, and floor plans.
- Property listing website page. This page should essentially feature all the same information as the flyer, with the addition of a link or form for the interested buyer to receive more information, and perhaps include drone footage and/or a simulated tour of the property.
- Listing databases. Database services, such as Costar, Loopnet, and others, provide the opportunity to include your property in searches conducted by brokers and users.
- Outdoor signage. Signage located around your property immediately alerts passersby of the available space.
- Email campaign. If you have a list of contacts in your relevant target audience, including real estate brokers, a well-crafted email is a great way to distribute property information.
- Targeted social media campaigns. Paid ads on social media channels typically feature a photo and brief description targeted towards your audience.
- Phone calls. Sometimes “old fashioned” phone calls made to other brokers, developers, or investors assure that you are not missing potential buyers.
Following the right process and using the appropriate marketing tools is the easiest and most effective way to attract potential buyers. Don’t waste time and resources on non-targeted marketing efforts for your property. Instead, partner with an experienced real estate advisor to guide you through to the next stage of the disposition process: negotiations.
Learn More Strategies for Unsupportive CRE Assets
Corporate real estate optimization is fundamental to achieving your business goals and responding to new challenges. Learn more ways to address unsupportive assets in your CRE portfolio by downloading our free guide, Portfolio Optimization: The Essential Corporate Real Estate Guide.