Advice: Business idea for niche in CRE - thoughts?
I've already developed the business plan, website and signage - now ready to put the business plan into execution.   

Purpose: To exploit a large gap in the commercial real estate market that is currently underutilized - and PROFIT from it. 

Intro: Offices and storefronts that are considered 'less than desirable' for the larger commercial real estate agents/brokers are oftentimes advertised by the owners themselves with cheap signs that offer only a phone number and a 'For Sale/Rent/Lease'  If the owner chooses to go with a commercial broker, they do very little to market or promote the space other than put their sign in the window and put a crappy sq. ft. and other minor details on their website - lucky if they even post a picture.  Nothing is consistent, it's hit or miss with this type of advertising and I really feel that it is an underutilized gap in the market. 

What can you do to fix this?: I've developed 2 things.  The first is a website that is robust enough to handle the listings.  This includes a detailed description for each property.  Extensive photo gallery, floor plan layouts, Google Maps integration, searchable, etc.  The second thing I have developed is a VERy professional and unique sign that brings sophistication to these vacant spaces and properly markets them to the 'passer-by'.  

How does the $ get made?  There are 3 ways to make $

1. We offer the package to the office/storefront owner for a fixed fee ($500-$750, depending on floor plan size, how many pictures, signs, etc). For this fee, we take professional pictures of his space, give him the superb, informative signage, and post the space to the website along with his phone number and contact info.  He gets the calls/emails/inquiries - we get paid a one-time fee for the advertising of his space. 

2. We act as the broker.  All pictures, floor plan design, signs, web listing post are done for free by us, but we get the listing and act as the commercial broker - receiving a commission when the space gets signed for a lease/rent/sale. 

3. We open this concept to outside brokers who don't have the time/energy to do all of the above.  They pay the $500-$750 for the package and all inquiries go to them. 


What happens next?:  I put this plan into action and start to get listings.  With my consistent, professional signage and unique, professional website - I will soon have listings grow all over the area.  The business will grow into a 'go-to' listing service for those smaller spaces that don't get the attention they deserve.  

Why does this work?  Because individual building owners don't have a real plan to market their properties - they have long relied on a 'sign in the window' because eventually somebody does come along to lease their space - offer them a better option and I believe they will use it - especially if it is done so professionally and inexpensively.  Also, the commercial brokers out there are too busy leasing 5,000 sq. ft. and up office spaces floors, and larger buildings.  No one is paying attention to these 'smaller apples' - simply because they don't offer as much in return. 

I believe this business model has great opportunity.  

I am seeking some feedback as I am ready to launch in 2 weeks. 

Please offer some suggestion/comment.

Thank you in advance!
[{"id": "cnp2soa", "text": "Say I have a 1k SF space that is in shitty shape and will rent for $1k a month.  Why would I pay you as a property owner when I can just stick it on loopnet who is going to have thousands of times the traffic you have?  \n\nSay I'm a broker,  on the same space I'm looking at 12k a year I can commission, probably neither the owner or the tenant will want to pay for shit so if say the awnings are shit or it needs retiled, a bathroom added, whatever that deal is just going to die.  If it does work, the tenant probably has shit credit and is likely a new business so they are going to be looking for a very small term.  The owner probably is too because he doesn't want to pay a bigger commission on a tenant who might be bankrupt in six months.  I don't lease those spaces because I can get 9-18k or so on that 5k sf space.  On the crappy 1k sf space there is a real possibility I am getting like 700~ bucks or less.  When I put a a minimum commission in the owner is going to flip out it is way too much (which it is for him).   \n\nI mean no offense, and hope this helps, but I still don't get it.  If they theoretically agree to pay $750 for you to come out and take pictures and put a listing up (on your site I guess?  What about costar, loopnet, xceligent, maybe mls?  I still have to do that bullshit I guess?) then I still don't want that listing.  \n\nBest advice ever in CRE is the small deals take as much time as the big ones and you make money from what you turn down.", "replies": [{"id": "cnpa7sj", "text": "I was told that early on and still went and did a small deal because it was handed to me and was supposed to be a quick 2 week deal. Well that 2 week deal turned into 3 months. I was fired by a new manager after only being at that office for 6 months, I'm guessing that \"easy\" deal had something to do with it. \n\nOnly the small boutique firms can get away with working on the small deals. They're a death sentence at large firms where you split 50/50 with the house. ", "replies": [{"id": "cnqcy4l", "text": "You got fired as an agent? ", "replies": [{"id": "cnqdgcn", "text": "I was \"Terminated\". \n\nThere was more to it than just a single deal that didn't go through. They hired a new manager about three months after I started. There was a lot of push back from the other brokers in the office who had spent their whole careers there. They didn't like him because he was young and was friends with the manager that hired him. He also came from a competing firm that our firm did not like. At CBRE we focused on values and ethics and really knowing the market and your client's needs. The new manager came from M&amp;M where they will hire anyone with a pulse and if you don't get x amount of deals within the first 6 months you're out. So when he started as manager he didn't get very much respect so I think that's what made him want to can somebody, and he decided on me, I was an easy target because I had just started and I didn't have any kids or anything (I was 23 at the time). The next newest broker who was hired only three weeks before me had two kids and bills, he had a degree from the university of pheonix and my degree is from the university of california - this really pissed me off. Basically he held me to Marcus and Millichaps standards even though I was a broker at CBRE. I worked my ass off to get that position too and he just came in and ruined it for me. \n\nI'm doing fine now working for a very well known broker in a different market. No useless managers here, thank god.   ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cnp31b4", "text": "I actually think charging a marketing fee to handle all the listings might be a viable business.  #2 is what concerns me.  I explain why in my other post but those listings just suck and are losers.  I'm not sure what business model you can have that will make you profitable on them.  Are you going to tour the space, negotiate LOI's, go through attorney reviews, build outs, etc for a couple grand?  If you can let me know how and I'll load up on those guys ", "replies": [{"id": "cnp94b2", "text": "I am with you all the way - especially on the fact that these smaller listings are crap and that essentially is the reason no one else is marketing them. \n\nI don't plan on hand-holding all the inquiries that come along for these listings when I am acting as broker in #2 - plenty will get weeded out.   And the idea is that since these spaces will have much more info beholden to them by the website - there will be less 'unqualified' inquiries. \n\nThe goal is to become a 'regional exchange' for these smaller properties that no one wants to spend the time on marketing.  If I can build an effective alternative and become the 'go - to' listing exchange - then I feel I will pick up traffic for these sub-par listings and hopefully push the concept into the class A - B marketplace. \n\nInstead of all these crappy miscellaneous signs 'by owner' - I want to see all my signs. If I can't make the sale at $500-$750 then I'll even do it for free - so long as they use my sign and I put the profile of the space on the site. If within 6 months a person can see a dozen of my listings on Main Street while driving to Corporate Drive - then Corporate Drive will have to take notice and use this service as a viable option as well. \n\nThis all stems from my problem with loopnet and that all the listings are so crappy - taken by 50+ year olds with point and shoot cameras, 1990's floorplans and little-to-no effort descriptions. My site kicks loopnet to the curb and it alone is my determination to get this business out there and infront of owners/landlords as a viable option for their spaces. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cnp7lzk", "text": "NumNumlobster knows whats up", "replies": [], "depth": 1}, {"id": "cnpk321", "text": "What's the URL? I'm curious to watch this develop over time", "replies": [], "depth": 1}, {"id": "cnpp5qj", "text": "Not to be brash, but I just can't see how your model will work:\n\n\n1. There are already websites and databases that market properties and include descriptions. If I was the owner and serious about leasing/selling I'd save the 750 bucks and just take pictures myself.\n\n2. This is already how brokerage works.\n\n3. Brokers paying 500-750 to get the inquiries will only net commissions of 500-700 anyway, so it's just a gigantic waste of time.", "replies": [], "depth": 1}, {"id": "cnq2cgu", "text": "How does this compete with Loopnet?", "replies": [], "depth": 1}, {"id": "cnq96vl", "text": "The goal in this business is to start a commercial real estate listing platform that is 'visible' on the street and carries a brand/outward marketing that distinguishes itself from all the noise of these various inconsistent listings and signs you see everywhere.  \n\nEvery storefront or commercial office building has a different sign outside and you can miss them if you don't know what to look for.  Some are blue, some red, some yellow, portrait, landscape, big letters, small letters, etc. -- they are all cheap and they all give a random phone number and no website.  The person who put the sign there expects the passer-by to call the number - without even knowing how big the space is, what it is zoned for, what terms are, etc.  \n\nWhat it all comes down to is that 'the people' want a consistency in listings and they want those listings to have standards.  Loopnet tries to do this with their consistent layout, but falls short when each listing is done differently, different descriptions and different pictures, etc.  All my listings will have adequate pictures, floor plans, descriptions, google maps, contact info, etc - there will be nothing left out.  \n\nIn my business experience it has all been about 'give the people what they want' - I am always looking out for the customer and find that making it easier for them to do business, removing the obstacles that might cloud their decision-making - ultimately leads to deals being done.  \n\nWhat I am trying to get at is that there is an opportunity staring me in the face with these 100s of random signs I see everywhere - an opportunity to create a consistent order to them and build a business from.  My signs are completely unique, like nothing you have ever seen.  They have class, are hand-made and have a day/night sensor that brings on an 'inner-glow' feature at night.  They cost roughly $45 each and I have no problem offering them for free if I have to in order to build this business up.  I'll try to win over as many landlords as I can with the idea and have this pick up some ground in the market.  My end goal is to then have my phone ring for listings - with landlords knowing that my listing service is the one to use because it is identifiable on the street and leads to inquiries. \n\nTo get to the responses\u2026\n\nA. The simple math of $1k/mo leases does prove this as somewhat of a waste - but not all of these 'street' listings are at $1k.  I'll do these deals for free, just to get my sign in the window. \n\nB. Not all Loopnet listings are done well at all - they have crap pictures and crap descriptions.  I take high-end pictures for residential and can take my lighting and lenses to these commercial jobs to make them stand out from all the crap that is on Loopnet.  \n\nI'm 32 years old and want to shake up the gray haired guys who get listings, post them to Loopnet, CoStar, etc. and wait for it to sell like all the stay-at-home moms who do residential on the weekends\u2026the industry needs some new blood. \n\n**Understand that my goal isn't to remain at the storefront level - but I am aiming for this as a business startup strategy to propel my service into the eyes/minds of the people (potential tenants and brokers alike), so that I make an impact on the market and give my business opportunity for growth. ", "replies": [], "depth": 1}, {"id": "cnva603", "text": "I don't get it. if you are 'brokering' do you not need a license if you are receiving commission? also as u/numnumlobster mentioned, the owner could potentially save the money from paying you to do the pictures etc themselves and post the property to Costar themselves which will expose it to brokers regionwide. The MLS is not an option since it is residential and almost zero commercial brokers pay for that crap. I think your idea is good, but you need to smooth out the edges and check in with the law department to make sure you don't get the crap sued/fined out of you.", "replies": [], "depth": 1}]