Vacancy Rate and Comprehensive Marketing Strategies: How to Overcome Real Estate Market Challenges in 2024?

In 2024, the vacancy rate of industrial and corporate spaces in Mexico increased by 28%, underscoring the pivotal role of brokers and property owners in adopting comprehensive marketing strategies to address this challenge.

For instance, leveraging 'book tours' and digital tools not only boosts property visibility but also reduces vacancy periods, and most importantly, transforms every client interaction into a tangible business opportunity.

Carlos Garcés, Commercial Coordinator at SiiLA SPOT, discusses the importance of customizing property presentations. Photo: SiiLA.

By: SiiLA News

08/30/2024

So far, in 2024, the vacated gross leaseable area (GLA) in the industrial and corporate real estate market has increased by 28%. Currently, nearly 2.7 million square meters of industrial space and more than 2.3 million square meters of office space are vacant. This rise in vacancies occurs in a context where non-pre-leased or build-to-suit industrial buildings can take up to nine months to be occupied, while office spaces, on average, remain vacant for about a year and a half before finding a new tenant, according to data from SiiLA.

In a market where competition for tenants is becoming increasingly fierce, the need for comprehensive marketing strategies is more urgent than ever. These strategies are crucial to reducing vacancy periods and maximizing return on investment. This means brokers and property owners must adopt an approach combining traditional and digital tactics to ensure their properties reach the right audience.

The combination of digital and physical elements is essential for implementing these strategies. Integrating printed materials with digital tools allows brokers to significantly enhance the visibility of their properties, achieving a broader and more effective impact. For example, creating “book tours” or customized property catalogs facilitates a more attractive and structured presentation of properties, making them essential for keeping properties visible, speeding up decision-making, and closing deals.

Backed by recent studies, the blend of digital and physical strategies is not just a theoretical concept, but a practical and effective approach. According to the UK’s Data & Marketing Association, printed materials like personalized catalogs have a lasting impact: 89% of recipients remember receiving a catalog, and 73% open or save it for later reference. Additionally, 92% of those who receive these materials are driven to take online action, such as visiting a website or making a purchase. These data underscore the importance of integrating both approaches, allowing brokers and property owners to keep their properties in mind for potential tenants and optimize their marketing efforts to close deals more quickly.

Tools That Turn Strategy into Results

Comprehensive marketing strategies are essential in the industrial real estate market. Photo: SiiLA.

Book tours stand out as a key tool among the most effective strategies for capturing the attention of specific or specialized audiences. These include SEO optimization, targeted social media advertising, and the distribution of both physical and digital materials. Book tours, in particular, have proven to be highly effective in presenting properties in a detailed and professional manner.

According to Carlos Garcés, Commercial Coordinator at SiiLA SPOT, “These flyers or reports, often used by brokers, offer an efficient way to personalize the presentation of properties, which is especially beneficial for smaller brokers looking to compete on equal footing with larger firms that typically have greater marketing resources.” These catalogs optimize property presentation and reinforce the visibility and presence of brokers and property owners with their clients, thus facilitating decision-making and speeding up the closing of deals.

SiiLA SPOT’s book tours offer a detailed and professional presentation of properties, featuring high-quality images, precise descriptions, and key data such as GLA, price, and vacancy rate. These reports, downloadable in PDF format, are tailored to each client’s needs, allowing brokers and property owners to offer an effective tool that can be easily shared digitally and in print. This flexibility and customization make the catalogs an ideal and intelligent solution to stand out in a competitive market, transforming each client interaction into a tangible business opportunity.

Accessing SiiLA SPOT's service is a straightforward process. Clients only need an active user account. They can then select a listed property or create a set of properties on the platform and generate a personalized report automatically from the corresponding menu.

In this regard, Carlos Garcés emphasizes that personalization truly allows brokers and property owners to excel in a challenging market. “It’s not just about showcasing properties, but how they are presented and how each client interaction can become a business opportunity. SiiLA SPOT’s book tours achieve exactly that, aligning marketing strategy with the specific demands of today’s market,” he concluded.

For more information about SiiLA SPOT’s 360 marketing services or how to create your property portfolio in the leading marketplace for industrial, office, and coworking spaces in Mexico and Latin America, visit the following link or contact us at spot@siila.com.mx.

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ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.