Selling retail buildings—and other commercial assets—can range from straightforward to highly complex, depending on perspectives and sources. However, one thing remains consistent: those who excel in commercial real estate marketing consistently outperform others, regardless of market cycles.

What’s the Latest on Retail Real Estate?

Despite a 15-year slowdown in retail space construction and the global pandemic’s negative impact, retail real estate is showing signs of resilience. A recent finding indicates a growing demand for this niche within commercial real estate (CRE).

CoStar reports that 35% of retail space—amounting to 310 million square feet—has been removed from the market over the past decade. Nearly 200 million square feet have been absorbed since 2021. This growth stems largely from a lack of new construction, compounded by rising building costs and high interest rates.

As of August 2024, only 4.5% of the retail space is available for lease. Of this, just 11% consists of properties built from 2010 onwards, while 75% comprises properties constructed before 2000. Regarding quality, 38% is classified as Class C, and only 6% as Class A among available spaces. This indicates a strong demand for modern, high-quality retail spaces, especially those built after 2010.

What’s the Latest on Retail Real Estate?

Effectively marketing a retail building or other commercial property involves understanding the differences between selling and leasing, as well as the distinctions between B2B and B2C marketing. There are significant differences between the perspectives of a buyer and an investor.

Here are some fundamentals of CRE marketing:

1. Content of Marketing Materials:

Although investors check rental rates and lease terms, they prioritize investment potential, financial performance, and property value appreciation. Most offering memorandums (OMs) or broker materials provided to investors contain details such as:

• Property description: This provides detailed information about the property’s characteristics.
• Market overview: This section provides investors information on external factors affecting property performance, such as demographics and vacancy rates.
• Comparables (comps): This section guides clients in evaluating the property’s competitive price and market position compared to similar ones in its surrounding area. Typically, it also contains sale and rent comparables.

Property buyers often focus on a property’s functionality and accessibility for their business. For retail properties, this includes proximity to main roads, high foot traffic, and customer-friendly features that are safe, convenient, and appealing.

2. Intent of Marketing Message

The central ideas in all marketing materials (including social media, website, and CRE platforms) should focus on the property’s benefits to owners or investors—the emphasis is on how they can achieve profitability.

These may include details on increasing property value, potential appreciation, tax advantages, and long-term results. This approach differs significantly from the typical messaging for leased retail properties, which highlights tenant savings and earning potential through factors like flexible lease terms.

3. Marketing Channels to Tap

The timeframe to sell a commercial property is longer and more complex than leasing one. Therefore, sellers or brokers must adopt diverse long-term tactics to close deals. Additionally, selling a property is often more effective when leveraging a combination of traditional and modern marketing tools.

5 Strategic Ways to Market Retail and Commercial Properties for Investors

To attract the right investors, you need more than traditional sales pitches. Success lies in presenting your retail or commercial property as a valuable opportunity through creative and professional marketing strategies. Tailored materials and a compelling presentation can help you stand out in a competitive market.

1. Present Your Property Creatively and Effectively

It’s not enough to simply provide the details investors need; you must also present them in a visually appealing way. Create materials that not only inform but also captivate. Think of these materials as your digital sales assistant. Here are a couple strategies to get started:

• Create high-quality images and videos. Professional photography, videos, 3D virtual tours, and drone footage do more than showcase your property visually—they allow investors and buyers to experience it virtually. Partnering with skilled photographers or videographers to produce these materials is a worthwhile investment that enhances your property’s appeal and marketability.
• Produce well-designed marketing materials for maximum impact. Present your messages in a well-designed and professional manner. Distribute impressive materials such as offering memorandums or broker opinions of value (BOVs). Complement these with well-designed stacking plans or site plans, if applicable, to initiate and sustain conversations.

For creating top-notch OMs, BOVs, site plans, and stacking plans, consider working with a third-party provider that specializes in these services. Companies like iSourceOut can deliver high-quality materials and even offer underwriting support tailored for CRE teams and firms. This collaboration ensures your marketing materials are both effective and visually appealing, making your marketing efforts stand out in a competitive landscape.

2. Prioritize Platforms That Lead to In-Person Meetings

Today, real estate professionals have more options than ever to market their properties, beyond social media platforms like LinkedIn. These include listing platforms such as CoStar, Ten-X, CREXi (Commercial Real Estate Exchange, Inc.), LoopNet, and PropertyShark. Each platform has its unique focus and distinct advantages that work best for brokers or sellers.

While utilizing all available platforms may seem ideal, it can become overwhelming and counterproductive. Focus on tools that generate high-quality leads and produce immediate results. The top priority should be the platforms that facilitate easy communication, including phone calls, direct messaging, or—preferably—in-person meetings.

According to HubSpot’s 2024 State of Sales Report, which surveyed 1,477 sales professionals, in-person meetings (51%) are the most effective way to win clients or prospects. This outperforms phone calls (46%), emails (40%), and social media (36%).

3. Empower Your Inbound Marketing Tactics for B2B sales

With the wide array of technological tools available, including AI, most people prefer to research (71%) rather than inquire with humans (29%) to gather the necessary information, according to a HubSpot report.

From a sales and marketing perspective, this underscores the importance of strengthening your inbound marketing strategy, particularly content marketing. Provide valuable, accessible, and searchable information for buyers, sellers, and gatekeepers. These individuals actively search, browse, and even engage with your company’s website and social media posts.

LinkedIn expert Richard van der Blom notes that courting a B2B market requires long-term effort, as opposed to B2C, which tends to be more impulsive and quicker to decide. B2B buyers typically back their decisions with data and seek genuine interaction with brands before making a final choice.

It’s important to remember that having a large number of followers doesn’t always translate to sales. LinkedIn expert Richard van der Blom refers to this as “vanity metrics.” Instead, the real keys to success in marketing are personalization, demonstrating expertise or thought leadership, and fostering meaningful interactions.

Effective content marketing involves consistently sharing media across platforms such as websites, blogs, and LinkedIn, which is particularly effective for B2B marketing. Running paid search ads can also enhance your property’s visibility. However, the cornerstone of your strategy should be publishing valuable and informative posts. These act as self-service tools for prospects—85% of salespeople affirm this approach’s effectiveness in HubSpot’s study.

4. Strengthen Lead Generation Through Face-to-Face and Online Networking

A Buildout survey revealed that 87% of CRE professionals attend events and conferences to expand their networks. Additionally, 79% of participants believe networking is essential for achieving their career goals.

Networking provides opportunities to learn industry insights, generate leads or referrals, and forge partnerships. In the US, many real estate associations help their members network and learn through programs and events. These associations include:

• ICSC: International Council of Shopping Centers
• CCIM: Certified Commercial Investment Member
• SIOR: Society of Industrial and Office Realtors
• NAR: National Association of Realtors
• NMHC: National Multifamily Housing Council
• NAIOP: National Association of Industrial and Office Properties
• CREW Network: Commercial Real Estate Women

To build a robust network, take a proactive approach by engaging in association programs. Attend conferences and events where you can connect with brokers, agents, sellers, investors, and other key players in the industry.

5. Boost Exposure Through E-Newsletters and Trade Journals

CRE investors and professionals frequently turn to media outlets like magazines and trade journals for relevant and credible information. Today, many of these publications, along with digital media platforms, offer website and e-newsletter advertising.

Notable publications in this field include National Real Estate Investor (NREI), Real Estate Forum, CRE Daily, Commercial Observer, Bisnow, The Business Journals, and GlobeSt.com.

Leveraging these channels allows you to tap into their established circulation, solid follower base, and substantial monthly visitors. This exposure translates into a targeted audience for your property, increased brand awareness, and enhanced networking opportunities.

A Roadmap to Better Results

Effective commercial real estate marketing combines creativity, strategy, and targeted execution. These eight ideas offer a roadmap to enhance your property’s visibility, attract serious buyers, and expedite closings. By implementing these strategies, you can not only boost sales but also establish a strong, professional presence in the commercial real estate market.”