Osceola ReVIEW - May 2008 - (Page 9)

COMMERCIAL REAL ESTATE By Michael Levine, President, Central Florida Commercial Association of REALTORS® (CFCAR) Real Estate Marketing Commercial vs. Residential Real Estate Brokerage Professionals are in the business of selling. The most complete description of the product that brokers sell is “Service”. In its purest form, Brokers provide the service of procuring buyers for property owners’ properties. Today it works both ways. Brokers find properties for prospective buyers and tenants as well. So what are the differences between selling Residential Properties as opposed to selling Commercial Properties? The tools are largely the same. The difference lies in three distinctions: Specialization, Preparation and Sphere of Influence. So, what’s the difference? What’s the difference between Commercial Real Estate Practitioners and Residential Real Estate Practitioners? Specialization Whether a REALTOR® practices residential or commercial real estate, there is specialization between, and within, each camp. Within the residential real estate arena a REALTOR® might specialize geographically, in multi family as opposed to single family properties, or a REALTOR® might specialize in investment properties as opposed to relocation or some other area of specialization. Within the commercial arena a REALTOR® might specialize in Land, Industrial, Retail, Institutional Sales or Leasing. Specialization is a key factor when differentiating between commercial and residential real estate professionals because each specialization requires a different regimen of preparation. Preparation Preparation is the key to success in almost every aspect of life. REALTORS® that pursue residential real estate should get to know the neighborhoods and pricing variables within their target markets, the builders that are represented in their community and issues that relate to quality of life, such as school districts, employment opportunities and shopping. Commercial REALTORS® must understand zoning, future land use maps, and financial calculations, such as the capitalization rate, internal rate of return and capital accumulation. Similarities between Commercial and Residential Real Estate Marketing Let’s take a look into the Real Estate Marketing Tool Box. REAL ESTATE MARkETINg TOOLS Residential Commercial Internet Marketing Direct Mail Trade Shows Print Media MLS, CIE Sphere of Influence Civic Organizations Networking Groups Trade Organizations Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Continued on Page 13. May 2008 Osceola ReVIEW 9

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Osceola ReVIEW - May 2008 President's Perspective CEO Perspective Communication News Education Corner Commercial Real Estate Association Newsmakers Legal Ease Sponsors May 2008 Monthly Planner

Osceola ReVIEW - May 2008

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