Broker Resources

Where did the buyers go? How to adapt your CRE strategy and capitalize on opportunities in challenging markets

April 6, 2023

Currently, commercial real estate is filled with uncertainty fueled by the turbulent economic climate, evolving policy, and the ultimate decision of whether to buy, sell, or hold. In years past, both buyers and sellers of commercial assets focused on closing deals quickly and profitably. Now, that focus has shifted. Owners of commercial assets face a new challenge: finding buyers. This means brokers must adapt and evolve their strategy to deliver results and close deals.

Where did the buyers go?

As the market has slowed and the future of the broader economy remains uncertain, buyers and sellers alike are feeling the strain of market conditions. The ‘cheap’, readily available financing of pre-pandemic markets no longer exists. In tandem, over the next two years an unprecedented amount of commercial assets will reach debt maturity, a potentially costly situation for owners who cannot afford to effectively refinance. This means that many owners are looking to sell, or will be soon to avoid losses. 

But with the impending need to sell comes the need to source investors who are ready, and able, to buy. In many cases, investors are also feeling the squeeze of rising interest rates and the general economic downturn accentuated by the fallout of the recent bank failures. As a result many investors have pulled in the reins creating a new selling environment where buyers are few and far between. Owners aren’t looking for the fastest time to close - they’re searching for any buyer who is ready (and able) to perform.

A new reality for CRE sales

When buyers are scarce and investment strategies have tightened up, sellers must adapt their expectations and embrace new opportunities to sell. It will be harder to sell in the current market but opportunities are available for sellers looking to embrace them.

The first step to selling right now is understanding that the traditional buyers may not be actively investing. While this may be true, there are buyers looking for creative ways to enter new markets and asset classes. Further it is essential to decide when to sell. Strategically marketing an asset is key to get in front of the right investors. 

Another important step in selling your asset is evaluating and engaging leads. Engage interested buyers as fast as possible and get the conversation started. Qualify leads to ensure potential investors are actually interested, and more importantly able to perform. You can instantly match your listings with real, qualified buyers on Biproxi.

Get comfortable with your data. 

Use analytics to better understand your data. Ask important questions:

  • How many investors viewed your OM? Did they view it multiple times?
  • Where are these investors located?
  • How much time did investors spend viewing your listing?
  • What assets were viewed/downloaded?

Biproxi gives brokers all of the data needed to have an in-depth understanding of their listing performance and marketing activities. Best of all, it’s free to get started and have instant access to the data you need to sell better.

Once you’ve found interested buyers it’s time to seal the deal. It’s crucial to ensure potential investors have access to all of the relevant information. Having all of your listing information such as property data, description, high-quality photos and videos, and diligence and other documentation all in one location helps interested buyers make better decisions faster. 

Demonstrate your success

When CRE sales are tough, set yourself up for continued success by setting yourself apart during the sales process. Establish confidence and transparency by providing reporting and insights to the seller. 

Again, it’s important to understand your data - and most importantly what it can tell you. A thorough understanding of your data and performance can help you set yourself apart and win more listings in the future. 

  • How many offers and CAs were received?
  • How did the final sale price differ from the original list price?
  • How long did it take to sell?

Innovative CRE technology and tools allow you to market your asset and reach active investors. Biproxi provides the tools and data you need to effectively sell in any economic climate. Whether its using data to accurately price your asset, comparing markets, or instantly connecting your listing to buyers whose individual investment criteria match your asset, our best-in-class marketplace and tools help you capitalize on opportunities and sell.

Daniel Trainor
Skilled in sales and marketing, brand development, digital content management, integrated marketing communications, Daniels brings a fresh perspective on CRE brokers and investors by leveraging technology in order to drive business success.

More posts