When I stepped in the real estate industry, my first observation was that the agents who dealt in Atlanta commercial real estate had more chances of finding success in real estate. Commercial real estate deals are usually bigger in value than residential real estate deals and, therefore, are more profitable for a real estate agent.
However, finding commercial real estate prospects is not easy. Only a small number of individuals have the purchasing capacity and capital to invest in commercial real estate. Hence, the process to find a commercial real estate can be quite lengthy and time-consuming. However, with my over 25 years experience of running the Atlanta’s premium full-service real estate brokerage firm, Platinum Real Estate, I can safely say that commercial real estate deals can be spotted easily with a little knowledge and experience of Atlanta commercial real estate industry.
To assist fresh and experienced real estate agents in their real estate prospecting journey, I am listing the 3 key trends and metrics that you can use to identify likely commercial real estate prospects.
1. Occupancy Rate of a Building
When searching commercial real estate deals determine and analyze the occupancy rates of commercial properties in your locality. If a commercial property has no vacant units and is generating good profits, it is likely that a novice commercial real estate investor will try to monetize this opportunity and sell the property for an amount higher than the purchasing price.
On the contrary, if occupancy level of a building is low, it becomes difficult for the owner to keep up with maintenance and repairs, and, as a result, they tend to put the property up for sale.
2. Current Data of Commercial Real Estate Sales
If you want to become a successful real estate agent, you must stay updated with the latest changes and activities in your local market. The rule of thumb for finding Atlanta commercial real estate deals is to gather recent sales data and identify the locations with maximum number of real estate transactions in the last three months.
When a building in a particular area sells, it is likely to see other owners put up their properties on sale as well in an attempt to find a buyer who is willing to pay a good price or to invest in a larger, more profitable commercial property.
3. Construction Activity in the Area
Construction of new commercial buildings may stimulate the owners of existing properties to sell them before their tenants move to the new, more attractive buildings. This human response may help real estate agents a lot in the real estate prospecting process.
So, stay in touch with local authorities and construction companies to identify the owners who are willing to sell out their properties at a reasonable price.
For more information on real estate prospecting, download my eBook “The Viral Noise – Social Media Marketing for Real Estate Agents”.
For more information, visit Luther Ragsdale.com or Platinum Real Estate.com.