SmithREServices - Sacramento Commercial Real Estate & Investors Guide

09.14.2007

For Sale Sign line art You’ve seen that same commercial sign on the property for years. It’s been there so long that it’s almost a part of the real estate. Does that help the property owner?

Remember, what is familiar often becomes unseen. Availability of a space or building needs to be seen to be leased or sold. To keep a property in the minds of prospective tenants and buyers, it takes an active marketing approach on the part of the broker/agent. A sign is just a part of that strategy.

What about accountability on performance? If the sign remains, the job is not being completed. There can be many reasons for this, not the least of which is pricing. Pricing is set by the market. When the market essentially “rejects” the property, it is generally due to one of 2 reasons: price or marketing.

If the challenge is price, then it is in the landlord/sellers control. The agent who presents the facts about the market on an ongoing basis to the owner gives that owner the possibility of taking action to get the deal closed. The owner makes the decision to either continue to “list” or to get the property sold/leased.

If the challenge is marketing, that is in the broker/agent’s control. Ask your broker/agent to explain their marketing plan as well as the implementation time. Often a major effort is extended on the part of the broker initially only to fall off significantly after a time. Know your broker/agent’s strategy so you can determine it if meets your needs.

A sign on the property is an ongoing advertisement for the firm on the sign. That’s great for the agent, but may not be in the best interest of the client.