Despite the commonly held position of brokers across Canada, in this particular marketplace, very few commercial real estate sales close as a result of listing on the Multiple Listing Service (MLS). In St. John's, the MLS principally functions to consolidate residential properties. Residential realtors typically use MLS as a forum to "broadcast" the availability of commercial real estate.
Consummation of a deal through this approach, however, is rare. Placing our clients' faith in MLS alone may well result in having to hold the property for a longer period of time.
Martek has, with a great deal of success, achieved positive take-up of property through various pro-active approaches. It is our philosophy that a structured marketing program, using a narrow "shot-gun" approach, works far better than the typical MLS "list it and forget it" method.
Martek typically takes the following approach:
1. Preparation for our clients of a detailed marketing data package for distribution to potential purchasers and sales associates.
2. Identification of potential users from our client/market list. They will be approached directly by Martek to determine interest and, thereafter, intent.
3. Installation of signage on the site. While not a primary marketing source, we have effected positive results through these means as often as 20% of the time. In general, with this type of exposure serves to reinforce our other efforts by ensuring wide-spread identification amongst unknown potential purchasers.
4. On an irregular basis and subject to the approval of the owners, placement of newspaper advertisements. In a market of this size, however, we have found newspaper ads to be a rather ineffective marketing tool, as most potential purchasers will already be aware of the property, either through our direct contract, other sales associates or even through signage on the site.
5. Simultaneous with the above and as decided on a project to project basis, we list through the MLS. To support this effort, Martek will provide pertinent information to select sales associates throughout the City who possess some knowledge of, or have a successful track record in multi-unit residential or commercial real estate.
6. Distribution of a detailed summary of the investment opportunity to a selection of CCIM colleagues across Canada. Such an approach provides exposure of the asset to a wide range of real estate firms on a national level and thereby generates interest from potential investors residing outside the Province.