বুধবার, ১৫ ফেব্রুয়ারী, ২০১২

Why You Don't Always Win with Low Prices in Commercial Real Estate

Price is important, but it should not be the only lever you use to attract tenants or buyers.

As your competition prices tight to market and differentiates its properties with aggressive positioning campaigns, they are filling and selling their buildings fast. They have discovered that as people rely on the internet for property searches, buyers and tenants see commodities where the lowest price wins. They also know that differentiating by price is a race to the bottom, which is not a race worth winning.

Take a lesson from Apple. People line up to pay hundreds of dollars more for their products because Apple's customers believe in buying something unique, special and different.

Here is how to make Apple's technique work for you.

Identify your property's point of differentiation and exploit it. All properties own a point of differentiation, even yours. It could be an owned attribute, preferred location, heritage, architectural significance, popularity or the newest product in the market.

Our clients have applied these ideas and in weeks have raised rents 15%, reached 100% occupancy (with a waiting list), as well as sold troubled investment properties to the right buyer in 81 days. By establishing a position of difference in the space and investment market, you, like Apple, attract people who recognize your property?s value and pay you for it.

About the Author:?Jeremy Cyrier, CCIM is the President of MANSARD, a market research driven commercial real estate brokerage and advisory firm, and?member of the CCIM Institute faculty. ?You may reach Jeremy at?Jeremy@Mansardcre.com.

Get a free copy of?The Essential 7 Step Guide to Filling Commercial Vacancies.

Contact MANSARD's Brokerage Services here.

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Source: http://masscommercialproperties.com/2012/02/13/low-prices-in-commercial-real-estate-investing/

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