When starting a real estate portfolio, your first crucial decision is to pick a property type. Residential properties are often the first that come to mind; naturally, new investors are more familiar with this asset type since they likely own a house. However, commercial real estate is also a lucrative opportunity that is vital to community-building.
You can still invest in housing by buying commercial multifamily properties. This sector is ever-growing with help from the remote work boom. Retail real estate is also enjoying a nice rebound as consumers flock back to Mainstreet.
Property marketing and advertising is a necessity every investor needs in their toolkit. You want to attract small business owners who have lasting power in the community.
Here are a few strategies to consider in your plan.
Identify a Need In the Community
The commercial property marketing process begins before your first big purchase. You want to buy a commercial property with the most earning potential. The first thing you should do is look for a location and identify a community need in that location.
Look at the average income in the area and property values. Take a look at the businesses that are already there. A location with higher income brackets may do well with a new high-end boutique, gourmet restaurant, or bar.
If you're eyeing property in a financial district, this is a prime location for a new office building or tech startup. Think about investing in properties that can be renovated into modern, productive spaces.
Finding Tenants That Will Last
Commercial properties are more difficult to fill than residential properties. Some business segments have higher turnover rates than others, like restaurants, for example. Again, that's why it's crucial to prioritize community needs (and demands) in your approach.
Make the tenant procurement process a part of your entire marketing plan. Start by crafting an "ideal commercial tenant" profile. This step will help you customize rental property ads to the right market.
Set a revenue range for your ideal tenant profile. You'll need to see past financial statements proving consistent profit. Ideally, you want an experienced business owner with a track record for success; this is a good opportunity to consider a franchise owner.
If you own an office building, you'll want to promote to companies that align with the area's top industries. This step will attract more jobs and economic growth.
Creative Tips for Advertising Rentals
Invest in all necessary upgrades, including exterior and interior painting, flooring, and window treatments. You can prepare the grounds for curb appeal by investing in landscaping.
You'll need plenty of high-quality photos of the building for property promotion. Consider recording a video tour for prospective tenants, as well; you can upload it to your property website.
Invest In Property Marketing and Advertising
Make sure you invest in the right location, tenant, and business sector. These three elements are critical for property marketing and advertising.
Working with an experienced property management company like PMI Chattanooga from the beginning will enable you to focus on scaling your portfolio. We're part of a growing Fortune 500 franchise with over 20 years in the industry. We invest in the latest technology designed to grow portfolios and communicate profits.
Book a consultation to learn more about our philosophy.
