At Activum Real Estate Consulting we are constantly actively listening to the real estate market and looking for opportunities. search for opportunities. In recent years we have wanted to expand our business business and specialise part of our sales team in the sale of Tertiary Assets. Tertiary. In this post we want to share with you part of our know-how. know-how.
Activum's keys to to sell Tertiary Assets are: to be clear about the type of tertiary assets we can find, to know the the target public of this type of real estate product and to advertise effectively to reach our and to advertise effectively in order to reach our target audience. target audience.
Types of tertiary assets
- OfficesThese are real estate assets used for the development of different administrative, financial, information, technical and other activities.
- CommercialThey are intended to provide services to the general public, either as commercial premises or as large shopping centres.
- IndustrialThis type of real estate asset has the purpose of handling all types of operations involving the transformation, repair, processing, storage and distribution of any type of material product.
- Soilrefers to a piece of land that maintains all the physical conditions necessary for the construction of a building in the future. It is important to know what category of land it is; Urban or urbanised land is land that has been urbanistically transformed., Undeveloped land, Land for development is the soil that we could call in transition.
- GaragesPublic or private car parks. They are located inside a residential building or for other purposes.
- Storage rooms: These are spaces for storing objects that are not frequently used, so their only function is to store belongings.
- Singular Assets: Here we define all those that are NOT found in the previous classification and those that, being found in the previous one, have important differential characteristics, due to the legal, urban or fiscal situation of the asset. For example, hotels, old people's homes, student residences, office buildings, stalled works, warehouses, etc.
Target audience Tertiary assets
INDIVIDUALS:
They want to buy for their own use or as an investment to later rent out (put at a profit) some tertiary asset. They tend to make these transactions on rare occasions, to include in their personal assets simple and easy to manage real estate: garages, premises and offices.
SELF-EMPLOYED:
They tend to look for tertiary assets to develop their activity and not have to settle in third party properties where they pay rent, and probably have to fit out the place to cover their needs, leaving the investment made to the benefit of the owner when they leave. These are usually one-off transactions.
PARTNERSHIPS:
Several cases are presented:
- Those seeking assets for their own use, similar to the case of the self-employed.
- Those who also seek assets to invest, increase the company's equity and obtain tax benefits as well as income from profitability or subsequent sales. They tend to make transactions from time to time, depending on the capacity and solvency of the company.
INVESTORS:
They can normally be presented as companies whose main activity is the purchase of real estate in order to hold it for profit or to sell it at a profit.
The transactions are recurrent and seek opportunities in the market, they are not defined by a specific typology linked to any activity, they are governed by the price, attractiveness, location and versatility of the property, always with a future lessor or buyer in mind.
ASSET-HOLDING COMPANIES:
These are companies that do not engage in economic activities as their main activity, but rather in the management of assets, generally consisting of securities or real estate. Therefore, in order to increase their assets, they resort to the recurrent purchase of real estate.
Advertising for Tertiary Assets
First of all, you must know what you are selling in order to accentuate the competitive advantage of the product, always taking into account the target audience and their needs.
YOU HAVE TO KNOW WHAT YOU ARE SELLING. PRODUCT DESCRIPTION:
Once you have visited the asset, spoken to the owner, taken notes, taken photographs and video, it is time to sit down and write a good description of the asset.
Prepare a description of the property and the building: surface area of both; the characteristics of the building, (e.g. column spacing, clear height, piers, electrical system, car parks...), its proximity to the main means of transport, description of floors, construction certifications, etc.
Making descriptions both informative and sales-oriented at the same time is a skill that comes with practice.
FOCUS OF ANNOUNCEMENTS AND HIGHLIGHTS
Tertiary product advertisements are more focused on their functional characteristics rather than on their attractiveness.
When a client looks for a property, they want to "fall in love with it", to see themselves living there. On the other hand, the buyer of tertiary assets looks for a suitable location, a sufficient size, conditions that are suitable or can be adapted to the needs of the development of an activity, and a price that can be amortised.
Advertisements should therefore focus on the information they need:
- LocationThe following are some of the most important features of the area: communications, nearby services, profile of local residents or companies located within the perimeter.
- Sizeindicate m2 built and useful, how they are distributed, ceiling heights, distances between pillars, access to the street, length of the façade, etc.
- FinishesWhat facilities and finishings does the asset have, licences, etc.
- Photographs/videosThe photographs are always a magnificent ally in an advertisement, they must be sharp, preferably horizontally, without photographing corners or furniture, which do not provide information, looking for angles that generate amplitude.
COMMERCIAL SHEETS
The commercial data sheets are a summary of all the relevant characteristics of the asset, they do not have large texts, they are concrete data that make a complete "picture" of the product in very little space:
- Physical description of the asset
- Description of the environment
- Technical description
- Address, surroundings, cadastral reference
- Location map
- Photo of the asset
- Terms and conditions of sale and legal and financial documentation
THE "FISHERMAN'S" AND "HUNTER'S" TECHNIQUES
The Fisherman's Technique. It consists of placing one or more advertisements in the press and online, sending a few emails to certain companies, and you wait to be called. The problem with this system is that you can be waiting +12 months to get a visit to the asset from a really interested person.
The fisherman's technique is the one used by most real estate agents, resulting in thousands of assets for sale with pitiful advertisements.
Writing an advertisement "informing" that you have an asset for sale is not the same as publishing an advertisement "selling" a certain product. To achieve the latter you need to apply the details listed above to your advertisements (points 3.1, 3.2 and 3.3).
The Hunter's Technique. The hunter knows that he has to walk a long way, shotgun in hand, and go to where the rabbits are in order to to get their prey. Selling tertiary assets with the hunter's technique is the same, but telephone in hand.
The advantages of this system are several: very little competition or few professionals using the telephone properly; speed of sale, (1-3 months maximum) and customer acquisition that you you didn't know they existed for the sale or rental of other assets in the future.
We hope this information has been helpful and supportive in guiding you through both the selling process and the selling process, so that you can get a general idea of what types of tertiary assets are available for investment.
