The next step after purchasing a commercial property is to rent it out. If you are going to be successful in locating the right tenants, advertising is essential; after all, if potential customers are not aware that your property is available how can they rent it? Advertising broadens the market and increases demand which benefits appraisal values. Remember, when the supply is low but the demand is high, prices go up.
Advertising and marketing will expand your business, but there are several mistakes you will need to avoid to ensure that you are successful in renting your commercial property. Keep reading to avoid common advertising pitfalls in the commercial property industry.
1: Poor Budgeting and Overspending
It is essential that you have a marketing budget! As a newly incorporated company you are going to get plenty of advertising companies approaching you through cold calling or email marketing promising to increase your sales by one hundred percent. To be successful in any business you must spend money on an aggressive marketing campaign; however, spending too much can adversely affect the return on your investment. To avoid this, make sure that you have a solid financial plan and don’t spend a penny more than is required.
2: There is no One Size Fits All
In advertising what works for the goose doesn’t necessarily work for the gander. Just because it worked for Joe Bloggs up the road doesn’t mean it will work for you. Your business is unique and you have a certain target market that you want to reach. The marketing team that you work with will have to sit down with you and discuss your needs to ensure that they tailor the right plan that will take your business to the next level.
3: Targeting the Wrong Market
If you want to target high end clientele in the million dollar net worth bracket, why are you placing your advertisements in the local gazette whose typical reader earns $30,000 per year? Understanding your target market is crucial to your success. Here are some of the questions you will need to ask yourself before you launch your advertising campaign.
- What type of consumer do you want to rent your commercial space?
- What type of commercial property are they looking to rent?
- What are the demographics of your target market?
- What is the best way to reach them?
4: Insufficient Information
When a potential buyer reads an advertisement, if they can’t find what they are looking for they will swiftly move on to the next. Make sure that you supply accurate and concise information in your advertisements.
5: A Drab Punch Line
Your advertising copy must be on point, words are powerful and saying the wrong thing will send your customers running into the arms of your competitors. If you don’t have a way with words, hire a copywriter they are professional writers who know how to appeal to the emotional needs of the consumer.
6: Limit Your Advertising
You don’t need to place an advertisement in every media outlet. Create advertisements that work in a limited media selection. This ties in to understanding your target market, if you know which media options your target market focuses on that is where you should make your investment.
7: Failure to Prove What You Are Saying
To attract customers a commercial real estate advertisement will often say something like: “Office space to rent in the most prestigious city location, our customers have increased sales by 50% since relocating.” This is providing evidence of a claim, a potential customer wants to see statistical proof of the claims that you are making, make sure that you provide them.