5 Problems That Affect Commercial Real Estate

5 Problems That Affect Commercial Real Estate

The real estate sector for offices and commercial stores has serious business on a not-so-distant horizon. Obstacles that mark your future and therefore that you must face as soon as possible. In this article we will review 5 hot points that every investor in Commercial Real Estate (CRE) should be clear about.

In this article we will go from the most complex to the simplest, but each element should have your special attention. Of course, to be able to swim in these turbulent waters, the investor must design a commercial strategy for CRE, and only then will he be able to take full advantage of the current scenario.

Growing polarization of politics

In spite of us, the turbulences of international politics affect the sectors of the national economy. And even more so if it is a real estate developer who usually has contacts and alliances beyond the borders of a single country.

Therefore, Brexit, the foreign policy of the United States, the conflicts in the Middle East or the process of independence in Catalonia, little by little, are entering the topics of discussion for real estate investors. Several groups of investors are withdrawing positions in CRE due to this instability.

Climate change

It seems unlikely, but global warming is also impacting commercial real estate. A clear example is the ban on building in steel and glass in New York due to the low energy performance of these buildings.

More and more companies and entrepreneurs are looking at this point and investors must take care where they set their objective, No one wants to pay more than necessary for light or air conditioning, which entails a strategic design of where to prioritize investments.

Technological explosion

Advances in the technique allow the market to grow in several directions at the same time. In other words, a real estate developer specialized in CRE can reach its client through more platforms and means.

A real estate agent must easily handle terms such as Internet of Things (IoT), blockchain , smart homes, in between and so many neologisms that are having more and more force in the economy.

Furthermore, stores were traditionally associated with the offline economy. That is why this entry of technology represents a shock. This digital fresh air creates opportunities for the future but also implies a great effort and investment on the part of the traders and owners of the commercial land.

Generational separation

Naturally, millennials have an increasing weight in companies and in how the economy is doing. Not surprisingly, people from previous Baby Boom and Generation X generations are drifting apart to make way for young blood.

This implies changes in how a business should be approached. The ways of working are different and each generation appreciates some values ​​more than others. If you are interested in how the generation change affects the real estate sector, you can read this article about it.

Changes in Retail

And last but not least, developments in the tertiary sector. The Commercial Real Estate blue world city islamabad is based on being able to sell or rent its square meters to shops or offices. The main change is the mass entry of ecommerce, without this representing a clash with physical stores.

In other words, stores are currently changing their work model to focus on meeting consumer needs. Delivering what the customer wants is the way to survive. Unfortunately, there are times when a store is not designed to have the consumer as the protagonist, and this implies its closure.

On the other hand, it also happens the other way around. The case of Amazon, the great online store par excellence, is opening small shops and supermarkets in large cities.

Offline Real Estate Marketing Actions

The offline marketing actions in which a company in the Real Estate sector is always thought of are the delivery of brochures and advertising on the street, however, there are more powerful tasks that will achieve a better result, and that are activities that were coming doing before the great expansion of the Internet. It is time to recover and improve them.

A good idea to start with is to be present at events related to the real estate sector. There are different ways of having visibility, although the most effective is the sponsorship of an appointment where Real Estate professionals meet, as the brand will gain visibility over the rest.

You can also sponsor other types of appointments or even, for example, a local soccer team, depending on the budget you have for an action like this.

Since the company has been made known, it is important that it has a good presentation, something that remains in the memory of potential clients. An attractive presentation can give a good boost.

Traditional advertising is important, but in a focused way. For example, local media is a great way to reach potential customers by location.

It is also an excellent way to approach an audience that is not used to online, such as the elderly. It is a small niche to which you also have to pay attention .

Other actions can be direct marketing through mail, as long as relevant information is provided and the graphic content is attractive and captures the attention of the recipients and does not become garbage that is discarded upon receipt. Also using a call center is an alternative that can offer an even more personalized service.

The advantages of offline marketing

In the world of marketing everything depends on the type of product and characteristics of the consumer, so we can achieve a significant reach in both online and offline actions, we must not rule out any opportunity.

One of the most important benefits that can be created through offline marketing is brand credibility. There is no better way to achieve it than face-to-face. Especially within the real estate sector, it is one of the points that potential clients take into account before making a decision.

Within that, we find that consumers want the opportunity to see and touch what they will buy. A showroom is a way to give that experience to potential clients, so they can see the finishes of the homes, the type of furniture, and so on. There is also a point of sale that has infographics and / or models of the real estate project.

The space that the company occupies is also important

A good brand design is accompanied by pleasant and quality facilities. The facade of the facilities of the Real Estate company is important, because in addition to being the first impression, it can be taken advantage of and organized to spread the most important properties.

If potential customers feel comfortable, it will be easier to make a good sale. The waiting area has to be large and welcoming enough so that no one chooses to leave. Those minutes can be used with brochures that include promotions or relevant information that invites you to stay.

Offline marketing is complementary to online, because the important thing is not to neglect any route, and as far as possible make one lead to the other, for example, within brochures putting the company’s web address for more information, or inviting them to subscribe to the newsletter and, on the contrary, to promote offline actions on social networks, such as an open day.

Are you ready to create a joint marketing strategy between online and offline? If you have found these tips interesting, share.

What does SIMA bring to your company?

This international show is becoming more and more relevant on the international scene. Thus, for the first time this year, 30% of the companies that will participate in SIMA will be companies with a service department, while 51% are real estate developers.

This fact is due to the definitive recovery of the real estate sector. If until the beginning of the boom times the majority of companies that came to SIMA were promoters and marketers, today service companies have entered the equation due to the maturity of the residential sector.

The real estate sector is incorporating new areas of specialty necessary to face the challenges of the new expansionary cycle, as will be seen in the presence of technological consultants, financial entities and appraisers in SIMAPRO.

Thus, SIMA will allow your real estate developer:

  • Spread your best promotions and contact your customers.
  • Receive advisory services and added value.
  • Expand your network of contacts in the sector.
  • Obtain a vision of the sector regarding the competition and thus enhance the added value of your promotion.

Likewise, for the first time, SIMAPRO will incorporate Tajarat properties in which numerous experts, speakers and professionals will discuss the importance of technology and its application in the housing sector.

The experiments that will be presented at SIMAPRO will allow real estate developers to know first-hand the new techniques of thermal, acoustic and light comfort, as well as the possibilities of saving water and energy, how to incorporate new materials and, in particular, enhance the new concept of Smart Home.

What does SIMA contribute to your real estate promotions?

Real estate fairs are important within the sector because they allow direct contact with our potential clients, it is usually an event where a large number of sales are closed since it increases consumer awareness of our promotions.

The preparation of a real estate fair must be planned within our real estate marketing plan , where tasks of lead segmentation, contact recovery, commercial loyalty will be scheduled, … which we will support with Email Marketing + Call Center, Email Marketing + Costumer campaigns Match Facebook + Automation or Costumer Match + Remarketing for example.

It is as important to prepare before the fair as it is after. Organizing data, reviewing the crm and planning marketing actions after the fair will ensure an increase in sales closings.

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