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Since there are four different types of transactions in our commercial real estate world, leasing, selling and raising debt and equity, we will need to look at how to develop a good marketing list in each type of transaction. We will look at developing these lists from the landlord side. We will also look at developing these lists from the user.
Let’s look at developing a good list for the capital markets. This includes Sales, debt and equity, we looked at the leasing last week.
We will assume that you have developed the minimum requirement of having all of the facts about the asset available to market. Buyers, lenders and equity sources won’t spend much time on a deal that doesn’t have at least the minimum amount of information. I won’t look into what these minimums are in this paper.
So now that you have your information ready to market, how do you develop a list to send it too?
If you are marketing a property that you want to send to as many buyers, lenders and equity sources plus their representatives as needed or agreed upon. I presume one of the main reasons you are hired is that you know the right folks to market a property too.
A couple of the different capital market areas are a bit easier than others to get a good list. The lenders and equity sources are always out looking to place capital in deals and market themselves more readily than a lot of the buyers. I’m not saying it is that easy and even if you get a good list, you may have a difficult time getting your email or call returned in a frothy market like we are in now.
There are lists in different publications of lenders, equity sources and buyers that can get you started on getting a good list together. These lists usually have the top 25-50 or so in each category to get you started. Some are in specific type publications while others may be in your local business journal.
The second list is quite a bit more work and since it is, not many will undertake the job.
Going beyond just the normal is where good can become great. “Successful people do what unsuccessful people won’t!”
So how do you go about getting this list? The first step is to decide what type of asset you will be focused on meaning office, industrial… In some markets you have to focus on one type to be competitive while in others you will have the ability to work on many types.
The best list of buyers, lenders or equity sources are obviously the ones who have completed a deal or several deals in the product or the area you are working. These are found in publications, deed records and by networking with others. This takes time and persistence.
The next step is a bit tougher since the one you are looking for now are the groups in each category that didn’t win the deal but had the capability to close as well. This list is the one you will have to spend a lot time and energy to continue finding these sources. Once you are a known deal maker in the product and area that you have focused on, these sources will start seeking you out and make keeping your list easier.
Let’s wrap this up.
Being able to develop and send focused emails to the capital market sources when you want to sell, need debt or equity for a property will allow you to get the best market price and terms for your deal. Good luck!
I will discuss developing email lists to track and find users of space next week.
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