Dramatic differences exist in the strength of the commercial property market in each city, heightening the need for real estate marketers to create the right media mix. TANYA SHINN shows how news media delivers the right deal.
Commercial property is experiencing an abnormal period of stark diversity, according to the latest research from Colliers International.
Office vacancy rates are at single-digital levels in Sydney (5.6%) and Melbourne (7%) while demand in the mining heartlands of Perth and Brisbane has contracted significantly to deliver vacancy rates of 21.8 per cent and 16.9 per cent respectively.
Aligned to this, the number of executives who say they are responsible for purchasing commercial property has shrunk – down 21 per cent to 256,000 over the past two years, according to the separate data from emma.
Marketers of commercial property, faced with such a challenging environment, must respond by getting their targeting and media-mix as accurate as possible.
93% hit rate
News media delivers the engagement of 93 per cent of those who say they are responsible for the purchase of commercial property. That number in Sydney and Melbourne alone is 85,000 executives.
Just as Colliers has identified strong deviations between CBD markets, National Australia Bank’s Commercial Property Survey (Q2, 2016) reveals shifting sentiment within the sector.
It predicts capital growth will be strongest in retail property with prices rises of up to 1.7 per cent over the next two years.3 City hotels are going in the opposite direction, having once been the darling of the market.
News media provides marketers with exposure to 238,000 commercial property decision-makers overall, or around 93 per cent of the market.
It also reaches 87 per cent of potential buyers in the retail and accommodation sectors, according to emma data. More than one in four (26%) potential buyers rank newspapers as their top source of real estate information. Two in five regularly read three or more newspapers a week.
Power of Print and Digital
Geographically, there are 132,000 potential commercial property purchasers in the five major metro markets, 71,000 in other urban markets and 35,000 in regional markets.
Newspaper sections offer targeted opportunities. Commercial property buyers are 90 per cent more likely to read commercial real estate newspaper sections than the average consumer.
Print and digital feature a significant crossover in readers’ usage of platforms, demonstrating why both should play a key role for marketers. Three out of five (58%) of all commercial property buyers who read newspapers also use digital news media.
As well as reinforcing print advertising, digital platforms provide different benefits. Sites and apps offer the facility to search on specific criteria, photo galleries and deliver location-based services on tablet and smartphone to help streamline the decision-making process.
- Colliers International, CBD Office Research & Forecast Report, H2 2016.
- Property Council of Australia, Office Market Report Points to Major Divergence between the States, August 2016.
- National Australia Bank, Commercial Property Survey, Q2 2016.
All other figures from emma™, conducted by Ipsos MediaCT, People 14+ for the 12 months ending June 2016; Nielsen DRM June 2016, People 14+ only.