It’s 10PM – Do You Know Where Your Marketing $ Are?

The Assumption

When it comes to how much money commercial real estate firms spend on marketing a property, most landlords don’t have a clue. Since marketing is not a cost that’s billed directly to landlords, many assume a marketing plan is all part and parcel of the commission package.

The Reality

The amount spent marketing a property by large commercial firms is based on how much commission that property will generate. Rule of thumb is that agents can only spend 4% of expected gross commission on marketing; therefore, a property that will generate a $50,000 commission receives a marketing budget of only $2,000. If you consider that signage is nearly always included at a cost of $800-$1,000, that doesn’t leave much left over for strategic initiatives.

The Difference

Smaller commercial firms are not tied to such stringent marketing budgets. As discussed in a previous post, the focus of smaller firms is on providing a customized experience; therefore, they can offer landlords customized marketing programs in conjunction with industry-leading third party marketing firms to maximize the effectiveness of each individual campaign.

In Summary…

When dealing with a larger firm, marketing dollars are spent based on what can fit into the budget. With smaller firms, marketing dollars are spent in the areas that will generate the best possible results.



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