Success in Outparcel Sales

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Success in Outparcel Sales

Posted on September 21, 2017
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By Brett Low,

Many in the CRE community that specialize in outparcel sales and leasing have a commonality when it comes to success. That commonality is knowing the voids that exist in each market, and how to best describe why your site is a good fit for a prospect.

Mapping an area by identifying existing businesses is a helpful tool to organize a plan to fill these voids.

 

 

 

1

Into the Void

A great start is to identify voids by sector. Examples thereof are retail, hospitality, medical, office and restaurants.

Restaurants can be divided into sub-sectors like Quick Service Restaurants (QSR), Full-Service and Family.

It is crucial to understand what each prospect is looking for when selecting a location and then adjust the marketing materials to highlight that criteria to the fullest.

 

 

Success in Outparcel Sales - Prospect

Prospect

Tenants, as always, make deals happen. Gaining interest from tenants, even small shop 1,400 square foot prospects, propels development.

Obtain a national tenant for that one-to-two-acre outparcel you have listed and a sale-plus-lease commission will be in your future.

However, do not omit “mom-and-pop” tenants. An entrepreneur working on their third or fourth location, who is well-financed, is a very viable tenant.

 

3

Recognition

Further success is found by recognizing existing tenants and businesses that are in poor locations.

Sometimes tenants end up in locations that make no sense.

Chances are they may wish to make a move, so knowing your market intimately is key in this regard.

 

 

Success in Outparcel Sales - Community

Community

Representing outparcels requires the broker to know all they can about their bit of dirt. Perhaps the site has potential tax incentives offered by the city or municipality.

Most communities have a government office dedicated to Economic Development. Making a simple call or visit may be illuminating in regard to tax incentives or even prospects.

On more than one occasion an Economic Development representative plainly stated the community needs or wants. This information is very helpful in filling the void and identifying prospects.

 

 

 

Success in Outparcel Sales - Competition

Competition

At times certain sectors will seemingly come all at once. You may find yourself with multiple offers for the same use.

What effect does this have on pricing? A great deal! As competition heats up, the offers inevitably improve in terms of price, due diligence and closing time.
Understanding what factors contribute to a sector suddenly coming into a market very aggressively is worth the time of discovery. Perhaps a trend can be spotted and duplicated in another area.

Knowing these factors (traffic, population, income levels, access to a lighted intersection, lot size) can help a great deal in prospecting for additional outparcel listings.

 

 

Success in Outparcel Sales - Vetting

Vetting

An important aspect of our business is vetting, meaning performing a background check on the prospective buyer or tenant.

Obtaining an offer from an unqualified prospect going to contract or lease only to have the opportunity fall apart will not endear you to your client, nor will your hard work be rewarded with a commission.

A higher offer is often not the best offer. Experience, financial wherewithal and local representation are crucial considerations, especially when multiple offers are on the table.

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