Just wondering how you guys go about getting commercial leads? I passed a printing shop yesterday that had a FSBO sign out front. I got the number and I'm planning on calling. I have no experience in commercial yet but I plan on co-listing or getting help from one of our commercial experienced elders in the office if...rather when,I come across my first opportunity. Whats a good approach or script for a commercial fsbo, and what are some lead generating activities for commercial biz?

I'm new here but I would suggest really starting to learn the commercial market in your area...get to know the comps, the zoning, redevelopment or highest/best use options, etc. Once you get to be an expert on the local market calling on FSBO properties is easy- you knowledge of the property and surrounding area and other recent sales will shine through in your discussion. Also- do a little research before you call. Is it an owner/operator shop, or lease space? Commercial values tend to weigh heavily upon cap rates so knowing FMV for lease rates, etc. will help you.

Well thanks watermark. I figured I would get at least a few more responses.....??? anyone???

Usually in Commercial you will not have for sale by owner signs in front of the building.

Most businesses do not want there clientele seeing the business is for sale as they might not come back or they think the business is in trouble.

You need to see as mentioned above if this is a leased space.If it's leased the value is not in the building but the books of the business.You will be then performing business brokerage which is different from the sale of property and land.

Commercial is ALL networking.A good first step is to join an organization like toastmasters.It's only about 50 bucks a year and the meetings will help you become a better presenter when speaking individually and with groups of people.

Later on you can join rotary clubs to network and similar organizations but you need to be polished in your presentation and appearance before joining.

With owners the SECRET is to have RAPPORT with them.Example if the owner has a concrete company I read up on the process before meeting them so I can hang woth conversation about what they are passionate about.

Most commercial is alot of small talk and then a few minutes of business.

hmmm, ok. thanks. yea this business has the FSBO sign out front. I wonder whats up with it. Maybe I'll call them up.

Merkaba,
Pull the trigger man! I want to hear about what happened when you called, not how you may or may not call. I'll make you a deal, you call the owner tomorrow and I will apologize to Traco, sound like a deal?

haha...!@#$% traco.

now that's funny prodigy!

Well, how did it go? I like how you said " yea this business has the FSBO sign out front. I wonder whats up with it...". Do you need a bigger sign to figure it out? Just kidding, but you should go in and talk with him. Me and a friend often dare each other to do things we don't feel comfortable with and put money on it, that's a real motivator. Do it and get back to us.

That could be taken out of context....

I thought I had the number in my phone but i didnt. Got busy today. But I plan on giving him a call and asking to come by and take a look at the place, see if he has any hardcopy info.

Well I called the fsbo. Turned out its not the business just the building. Its 8500 or so square feet, 450K. I didnt press him about listing as he really sounded like I interrupted his cigar, but he is offering 4% to buyer agents. So hey, ya never know.

What city and area is this building in

Greenville SC, Really close to the downtown airport (GMU) which would be a really marketable location. Right off of one of the busiest streets in town. He said he has no online presence or any flyers or anything. I know it has a loading dock, as far as I can tell. I can always take some pics, etc. Got anyone out there looking for such a deal?

Reggie Owens
Keller Williams Realty Central
Simpsonville SC
864-979-5743

You need to list this. I would call him back tomorrow and push for the listing.

sht...what kinda info is presented in a commercial listing presentation? I was actually looking for it online but couldnt find anything. I'm guessing since its not a cash flow type of deal, I guess not alot different than resi?
Also, what kinda info should I get in order to have what a commercial buyer would want to know, besides zoning?
Thanks guys!

zoning & existing allowed uses
future land use plan proposed use
square footage
historical rental income (may not be available for owner occupied site)
typical rents in the area
property size
survey
how much sq. ft. warehouse vs. office (if any)
parking ratio (# parking spaces per 1,000 sq. ft. building)

that's a good place to start

How you will sell it... and how much they will net.

I would start with WHY they are selling and DETERMINE motivation before going through a bunch of wasted steps.Then ask them how they determined there PRICE to understand there thought process and what type of seller they are.

Watermark,

Where do you find that information. Just curious as I have not done a commercial deal. But in case a deal comes my way, I'd like to know where to gather this information.
Thx!

4%.....That's 1% away from the typical commercial commission.

If your company will let you do 5% for a commercial listing, i'd show him what he could get for 1% more.

I have just begun to consider commercial. Can anyone reccomend if it is good to get my feet wet in residential first?

That depends do you come from a business background or have owned businesses in the past?

If so you could skip residential all together and jump into commercial.After a ton of ce courses and mentoring on the first few deals.

If you are looking for listings, I think that you should elaborate on your experience and your marketing plan for that type of property.

Retail is different than office, office is different than industrial, and investment is different than land (and vice versa for all). Since I am on the marketing side primarily, it is easy to simply discuss the importance of having a proper marketing plan and understanding their property and the prospects that it will fill their need.

For tenant prospecting, Cold calling door to door on businesses has generated multiple leads for me and you get a lot of information and a lot fewer negative responses than one would think.