Marketing your property during COVID-19?
Explaining the rationale of WHY to market your property & HOW to overcome associated hurdles amid an unprecedented global event
Why would you market your property during COVID 19 amidst so much economic uncertainty? After the results we have seen the last 90 days with taking properties to market during COVID 19, I think the question should be: why wouldn’t you market your property during COVID 19?
In DFW for the month of April, the market saw listing activity decline by 80% Y-o-Y. In May, we saw Y-o-Y activity decline by 87%. Within that statement alone, lies the opportunity.
At the onset of COVID-19 and the ‘shelter-in-place’ orders, investors quarantined themselves in front of their computer screens. During this time, deals fell apart, were tabled, put on hold, as deal flow almost completely dried up. Once owners ran their stress tests and had two or three months of good collections, they started looking for actively marketed product. The few active listings that remained on the market ended up performing unexpectedly very well.
Now the How:
Almost immediately after the ‘shelter-in-place’ order was issued for the state of Texas on March 16th, the commercial real estate industry stalled and became abuzz with this big question: how are we going to get deals done?!
The answer came almost as soon as the pandemic did in the form of 2 words – Virtual Tours.
We held virtual tours on 4 different listed assets, now all under contract. Local investors were at an advantage over the out-of-state investors. What resulted was an incredibly competitive environment for our active listings. While the number of investors actively looking to acquire has declined it has not declined as much as the available inventory. Interest rates are also at a historic low which has helped keep value at pre-COVID levels.
As an example, we marketed Cambridge Court, a class-B multifamily asset in Dallas-Ft. Worth, for a 3-week period. Within this short timeline, we procured Seventeen offers. Ten of those offers included non-refundable earnest money upon contract execution. Seven offers were at or north of the whisper price.
We talk to many multifamily owners, lenders, and other thought leaders in the industry every day. We value our clients and strive to be a thought leader in the multifamily niche. Contact me, or your favorite Greystone advisor, if you would like us to partner with you to help explore your options.
About the author:
Chibuzor Nnaji is a Director at Greystone | Investment Sales Group in Dallas, TX. If you want to learn more about our Off-Market Opportunities, Multi-Family Listings, Land Sale Listings, Property Valuations, Debt Platform, or meet for coffee to exchange value-add ideas, contact our office:
Greystone Investment Sales Group
6320 LBJ Freeway, Suite 228, Dallas, TX, 75240