Using Social Media to Advertise Commercial Real Estate

How the Internet has Changed Commercial Real Estate

You would be hard-pressed to find a business professional in any industry who will not admit that the Internet has changed their business in some way. The Internet is a great resource for people looking for information and products from all over the world, and as such the Internet has also had a profound effect on the commercial real estate industry.

In some ways, the Internet has had a significantly positive effect on the real estate sales world. But there is also evidence that the Internet has caused significant shifts in commercial real estate that have permanently altered the industry and made some aspects of selling commercial real estate more difficult.

Demand for Retail Space Has Slowed

According to the eMarketer website, total retail sales in the United States for 2013 was $4.732 trillion. That is a nearly five percent growth over the previous year and that growth is expected to continue. The ecommerce marketplace made up $225.3 billion of all retail sales, but the growth rate for ecommerce sales is expected to be much faster than brick and mortar retail sales.

The rapid growth of the ecommerce marketplace means that the need for prime retail storefront space is declining. For example, the growing popularity of online bookstores has had a negative effect on commercial real estate sales throughout the country. New retail businesses are starting online and that means that new space is not selling like it used to.

It Is Easier To Sell Property Anywhere In the World

Prior to the rise of the Internet, it was a long process to sell a piece of commercial real estate to an out-of-town buyer. The client had to travel to your location to look at prospective pieces of property and if those pieces were not suitable, then another visit had to be scheduled to look at other properties.

But with tools such as Google Earth, prospective real estate buyers can look at commercial real estate properties at out of town locations before they even contact the local agent. Once contact has been made, there are websites where the real estate agent can create panoramic views of any property that buyers can use to make decisions without even visiting the property first.

Data Is More Readily Available

It used to take months for commercial real estate agents and potential buyers to do the due diligence necessary to buy or sell a commercial property. But with the Internet, the information that everyone needs is readily available and often in database format. This speeds up transactions and helps to make the pricing for more desirable properties higher.

The demographic information available on the Internet is also having an effect on where and when new commercial properties are built. Prospective builders can now get extremely detailed reports on potential building spots in geographic areas and make much more informed decisions on where they should build their properties and when that building project should take place.

An Industry Has Built Up Around Commercial Real Estate Sales Online

When commercial real estate was done between two groups over a negotiating table, the number of people involved in each transaction was relatively low. There was the buyer, the seller, the real estate agents and the attorneys from both sides. Most commercial real estate experts felt that the Internet would streamline the process even more and make everything much easier.

As time has gone by, the Internet has actually made commercial real estate transactions more complicated than ever. Today, there are Internet experts involved in every commercial real estate transaction who are hired to analyze certain aspects of the transaction and generate reports that help the buyer get better value, while also helping the seller to get a higher sales price. The processing of real estate information has become an industry unto itself and has definitely altered the commercial real estate industry in many ways.

There Is More Pressure On Commercial Real Estate Agents

The Internet has opened up the entire commercial real estate world and given customers information they never had before. This means that customers know a lot more about the properties they are buying, the deals they can get, the financing that is available to them and the kinds of services other commercial real estate properties are offering to prospective buyers.

When customers are armed with all of this information, it means that commercial real estate agents have to work harder to make sales. An informed client base expects more and that is causing agents to have to alter the way they sell commercial properties.

These changes could be only the beginning of the Internet's impact on the commercial real estate market. As real estate buyers become more informed of their options, the agents will have to work harder to keep pace and generate revenue.

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