In a recent CCIM marketing meeting, I presented the Commercial MasterMinds standard for marketing packages for commercial properties. The content of our marketing packages has been developed as a result of my experience and interviews with investors, both private and institutional, as well as lenders and other key folks. I received such a great response to the presentation that I thought I’d highlight a few points here.

Keep it Simple! - All professionals I have worked with over the years have agreed on one thing – stick to the essentials. There are certain basics that need to be covered and should be contained in all marketing packages. Beyond this, so many packages are filled with fluff that is not helpful to buyers. Stick to the basics and an 8 to 12 page package is sufficient in most cases.

Get Buyers’/Brokers’ Attention, Drill Down – Put all the summary information, especially the price, location and cap rate, up front! Don’t make buyers go digging for the very basics. Too many make the mistake of getting lost in the ‘presentation’ that they frustrate other agents and potential buyers with marketing that is vague. Examples: poor email subject lines, pages of photos and maps and property descriptions in the first few pages of a package.

One Page Calculation / Two Page Flyer – All the basics required for buyers should be contained in these key pages. If the buyer continues to be interested, then they are ready for the full commercial marketing package.

Comparables, Sales and Rent/Lease – Present the Sales and Rent comps in an organized and easily compared manner. At the base of each comparable page are the subject property details. I use the simple comparison of Superior, Comparable or Inferior to the subject property for values of Unit mix, Unit Size, Location, Physical condition, etc. Of course, the only way to make such judgments is to walk the comparable properties, speak to the managers/selling agents and compare them to the subject property.

Seller Motivation / Buyer Motivation – Motivation is key to any Real Estate transaction. Why is the Seller selling? Why should a buyer be interested? Where is the upside and future potential? These details provide a reason for the buyer/broker to dig deeper and ask questions.  

 

 

Lender Comments – One things lenders do NOT like is when maintenance costs and management fees are below lenders’ underwriting guidelines, setting up expectations for a  higher loan amount. Lenders have several things on their wish lists for property details that they like to see in a marketing package. I’ll list a few here:

-Descriptive property pictures (interior and exterior).
-Documented rent comparables.
-Documented vacancy rates @ City/County levels.
-Accurate property income and expenses extracted from previous tax returns -not average percentages.
-Itemized list of recent property improvements.
-Explanations for unusual expenses such as capital improvements.
-Actualrent rolls with move in dates.
-Actual, historical collected income.
-Other collected income broken down by laundry, Vending, RUBS, Parking, Storage, etc. (include source of this income).
-Concessions explanation.

To learn more about my proven marketing package, please contact me at Pete@ConsultPete.com or 925-719-3569 . Your feedback and comments are always appreciated. Many thanks to my listeners and readers for providing feedback. To learn more about my background, visit Consult Pete. To learn more about the company strategy, visit Commercial MasterMinds.

Please contact me at Pete@ConsultPete.com or 925-719-3569 if I can be of assistance. To learn more about my background, visit Consult Pete. To learn more about my company strategy, visit Commercial MasterMinds.

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