Market Analysis Close Open
No project should start before conducting a market analysis. Although it’s best to have a hired professional conduct this analysis, anyone with common sense and an inquisitive mind can assemble the following information.
Basic Market Information:
Who is your target market?
How large is the area encompassing the people/businesses/major institutions that constitute your market?
How many potential buyers are in your market?
How much do your buyers or renters expect to pay?
What comparable projects are completed or underway?
How does your project compare in price, location, and amenity to similar ones?
What percentage of the total available space does your project represent?
How long should it take to sell or rent the units?
Useful Sources for Market Information:
SpaceFinder Mass Real estate brokers who specialize in similar projects
Visits to open houses in similar projects
Completed appraisals for similar projects: appraisals always list comparables, including price, size, location and amenities
Web-accessible demographic information by zip code
Print advertising and classified ads in real estate sections of the paper and in arts magazines
Town planners/economic development directors
Meetings with local arts organizations, individuals, friends, and colleagues to assess interest in new space
Marketing the Project Close Open
Most projects require at least some marketing. Below is a list of typical marketing strategies. The list is ordered from basic to more in-depth. How much marking you need to do depends on the size of the project:
Connect with colleagues through phone, email, conversations, etc.
Prepare an accurate written description and rendering for early communication
Post listings on websites
Post free ads in local newspapers, playbills, etc.
Create a brochure to give to buyer prospects
Develop a website describing the project that can be updated easily and frequently
Present your project to local arts groups and civic organizations
Make targeted marketing calls to larger tenants or collaborators, potentially setting up meetings to discuss your project
Have open houses once the project is done
Place signage on your building
Post your space on MLS.com, an online real estate registry
List your space with a real estate agent.
Selling Units or Leasing Space Close Open
A group or developer is allowed to sell or lease units with or without a licensed real estate broker.
If you are selling without a licensed agent, consider the following:
You will need to develop a thorough and accurate property description. It will be taken seriously and quoted back to you by the people who buy or lease space from you.
You will need to respond to buyers. A seller, which you will be, provides a service to the buyer. Buyers know this, even when they are joining an artists’ group or the space is being offered below market price.
You will need to work with an attorney to develop purchase agreements, negotiate deposit fees, and close the sale of units. Brokers provide help with these tasks as part of their fee.
You will have to arrange and pay for access to MLS listings (see below.)
If you are selling with a licensed agent, consider the following:
The broker will list, update, and handle inquires for your spaces listed on the MLS, enabling the public to browse listings for free online. Most condominiums, including lofts, are listed on this service.
At the time of sale, you will be required to pay a commission, typically 5 to 6 percent of the selling price, split amongst the agents involved.
You will need to sign a listing agreement that cannot be terminated immediately if you change your mind.
You will need to communicate changes, requirements, and special features through your broker and any cooperating agents who bring buyers to your broker.
If your group is interviewing buyers (and most are) you might have a minor conflict with the broker (who likes to control the sale.)
You will pay for most marketing materials listed above.
Before picking an agent, interview several brokers, noting their expertise in relation to your project. Brokers can be important members of your team, keeping you focused on your public face, relieving you of nuisance tasks, and running open houses. They render all these services for a fee that you pay at the time of closing.