The answer to how to prospect for commercial real estate in order to find a real estate investing opportunity can be as easy as turning on your computer or driving around town. The best sources for locating properties are:

Commercial Brokers

Local brokers can be found by driving around through commercial areas and taking down the information on the “For Sale”, “For Lease” or “Space Available” signs. You can then call the broker directly or visit the website if it was listed on the sign. Another way is to enter “Commercial Real Estate Brokers” in your search engine and check out the websites you come up with.

Although in most areas of the country there is not an MLS (Multiple Listing Service) for commercial properties like there is for residential properties, commercial brokers have their own listings of properties for sale, as well as a database of properties that other brokers have for sale. They will have properties locally as well as nationally. Utilizing a broker usually does not cost you anything as a buyer because the brokers will typically be compensated by the seller. In cases where the buyer does pay all or part of the commission, it is worth the cost if the broker has found you a great deal and probably saved you more than the cost of the commission.

Internet Sites

A number of good websites can lead you to potential commercial property deals. The most well known are Loopnet and Costar, which are similar to a multiple listing service for commercial properties.

You can also go directly to the websites of national commercial brokerage firms where you can see their listings and get valuable market reports. The beauty is that if the property you’re looking for is no longer available, you can sign up for property availability alerts or contact one of the brokers directly. By talking with a broker, you may find that the property you were checking on is no longer available, but that they are getting ready to list another property that may meet your criteria.

Real Estate Investment Clubs

Most of the larger cities in the U.S. have a number of local real estate investment clubs. These groups provide great opportunities to network and meet with other investors who have a similar interest in commercial property. The members typically include just about everyone: beginning as well as seasoned investors, brokers, attorneys, title company officers, appraisers and others who make their living from the various real estate investing professions. Most of these associations meet once a month to discuss current events, share information and have an expert speak to the group.

To find clubs in your city, enter “real estate investment club” in your search engine or try going onto the National Real Estate Investor Association website and then search for the nearest club in your area.

Newspaper Ads and Publications

You can often find owners of commercial properties who want to sell by looking at newspaper classified ads and real estate publications ads. Magazines that are good are Real Estate Forum and publications by France Publications. Newspapers can include your local paper, The Wall Street Journal, The New York Times and the Los Angeles Times.

Other Sources

Others who may be able to assist you in your search include your own personal network of contacts, a local realtor or the realtor you bought your house from, your banker, your attorney or your accountant, any of whom can possibly assist you in your search.

Whatever you do, have fun learning how to prospect for commercial property. Talking with others increases your knowledge and expands your network.

A frequent question among investors is “What are the benefits of investing in commercial real estate when weighed against other investment options?”

There are several platforms to invest your money in today. The stock market is obviously still an option; however, many investors are moving away from that venue due to the market’s volatility and low rate of return. Some investors are finding decent returns lending their money out because buyers are turning to private money sources due to standard commercial lending sources being so tight in the current economy. However, the platform that offers one of the greatest opportunities and highest rates of return in the current volatile economy is investing in commercial real estate.

Many of the same people who previously invested in residential real estate are moving into buying commercial properties because they see current market conditions as creating an opportune time to make this upward transition. So, what are the factors that lead commercial investments to stand out? Commercial property investments result in higher returns for a number of reasons:

The Benefits of Commercial Real Estate

Investing in commercial property enables you to generate money in several different ways. Here are just a few examples:

1. First, you can buy the property, build equity and then, according to your exit strategy, take your profit upon selling the property.
2. If you are looking for monthly income, you have the option to lease or rent the property to earn monthly cash flow.
3. If you are running your own business out of the property, you will be saving the expense of paying rent to a landlord while building your equity in the property at the same time.
4. If the commercial property you bought for your own business contains more space than you need for your operations, you can earn monthly income by renting out or leasing the portions of the building not in your personal use.

A Secure Investment

Investing in commercial properties is a secure investment for several reasons:

• The tenants’ rent payment covers the largest expense of the property, the mortgage.
• Most commercial leases increase with increases in the CPI (Consumer Price Index) so any increase you have in your expenses is covered by the increase in rent to the tenants.
• Most or all of the operating expenses are paid by the tenant through NN or NNN leases.
• Tenant improvements are paid by the tenant to a large extent.

Taking Advantage of the Opportunity

There is a wide range of commercial real estate properties available. Keep an open approach towards the different options and consider all the investment opportunities that seem worthwhile. Put in the extra effort to find the most suitable property for yourself, and it will definitely turn out to be a valuable investment.

Regardless of your current plans and strategies, it is highly advisable to consider investing in commercial real estate as one of your investment options.

When it comes to commercial real estate agency sales, here are some identifiable facts and rules to follow with your listings and with your team.

• When you list good properties, they will sell in any property market and in any economy. It is simply a matter of following the rules and finding a buyer that can act with suitable levels of financing.
• Great properties will sell at any time and usually off market providing you have a detailed database of qualified buyers. The size and versatility of your database will be a critical component to territory domination.
• Ordinary properties take time to strategise and market into your local area. They require a property specialist who understands the local territory and the levels of enquiry from the business or investor community. Ordinary properties also take a reasonable degree of target marketing and negotiation to get across the line. Time on market can be a real factor to monitor with the marketing.

The majority of properties you come across will be fairly ordinary and in category three above. On that basis all the skills of a good salesperson are required and used.

These are the required levels of expertise for a good commercial sales or leasing person in this market. These factors will overcome the challenges in any of the property types above. These factors can be practiced and learned.

1. Understanding the local property market historically and currently will give you the information regards the deals and the benchmarks on pricing and leasing. Add to this the factors of supply and demand and information on new property developments coming up.
2. The ability to prospect for new listings and people who are actively seeking assistance in the property market is foundational to listing success and market domination. As simple as this factor may seem, most salespeople do not have the long term diligence and persistence that the task requires.
3. The process of prospecting and generating appointments go hand in hand. The ability of the team and each salesperson to make contact with new people and then convert new listings is critical to the agency business.
4. A successful meeting with the prospect only occurs when the salesperson has the required property knowledge and the communication and presentation skills to match the needs of the prospect. Commercial real estate owners and investors generally understand the property market and the strategies behind it. The salesperson has to match or exceed the knowledge of the people that deal with.
5. The property listing process involves a number of decisions and targets. They include selection of the correct method of sale, determining the right information for comparable pricing, packaging the marketing campaign to reach the target audience, and establishing the momentum of the sale process, inspections, and negotiations.
6. The property inspection process can be quite special and relative to the particular property. It may require special considerations of inspection with qualified prospects. This means taking them through the property in a particular way to allow the features of the property to be correctly identified.
7. The marketing of property today is unique and special to the property type. The local area will also have impact on the marketing solutions you provide. The right choices that match the identified target market for the property are essential in every property promotion.
8. Attention to detail in the listing, negotiating, and contract process are essential and non-negotiable. All discussions and agreements need to be correctly identified and reflected in written representation between the parties and your supporting paperwork.

In reviewing this list, it is easy to see that the required expertise of the commercial salesperson today is quite high. All of these factors should be improved and practiced over time by each and every salesperson.