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21 Smith Highway Smithville

Prepared for

Vendors Name Address, Suburb

by
(COMPANY) ACME REAL ESTATE
89 Texas Street Smithtown Telephone (02) 99999999 Facsimile: (02) 888888888 Internet: www.commercial-realestate-training.com E.Mail: info@commercial-realestate-training.com

CONTENTS
1. Introduction 2. Network Strength 3. Property Market Overview Office Retail Industrial 4. Property Assessment Land an property Zoning Access Public transport Local labour market Age Improvements Current usage Estimate of current worth

5. Method of Sale Private sale Public tender Public auction 6. Leasing and Property Management
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CONTENTS (continued)
7. Marketing Strategy Marketing campaign Target market Timing Inspections Direct marketing Sign boards Media campaign Property guide Proposed schedule/costs

8. 9.

Agency Fees Conclusion

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1.

INTRODUCTION

Thank you for providing us the opportunity to report on 21 Smith Street Smithville We are pleased to present the following report which includes accurate and concise market information in addition to a brief and objective description of your property and its current market value. A comprehensive marketing strategy is also included along with cost estimates. The report will also focus on many aspects of the service offered by (Company) ACME Real Estate which include: Property management Sales by negotiation Auction sales Leasing Valuations Corporate relocation Design consultation.

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GROUP STRENGTH

(Company) is a member of the ACME Real Estate Group, one of the largest real specialist commercial estate groups. In its entirety, the ACME Real Estate Group boasts a total of 25 offices across Australia, New Zealand, and USA with affiliations in many other countries across the world. The ACME Real Estate Group offers greater opportunities for exposure of property and first access to prospective property owners or lessees across the country and beyond. ACME Real Estate specialises in commercial, retail, and industrial real estate, concentrating on the (description of area covered) (Company) is regarded as one of the most experienced real estate businesses in our State. We have recently won a number of prestigious ACME awards for our marketing expertise and consistency in topping the state in commercial transactions. Essentially, these awards prove we know our business; client satisfaction being the best measure of our performance.

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3.

PROPERTY MARKET OVERVIEW

Currently, the property market overall is considered relatively flat. While there has been an increase in buyer interest, resulting in a slightly elevated number of sales, generally activity is modes. The market place is being described as patchy, with some areas of the state experiencing boom conditions, while other areas are experiencing depressed market conditions. Office This market is continuing to experience mixed performance with significant rental growth limited to suburban markets. Nearly all localities are experiencing low activity in new projects and office refurbishment. Rents have remained relatively stable in the office market and investment activity has increased. Yields are generally stable. Specifically, (name of suburb in which property is located) is experiencing (state retail market condition if applicable), although we predict (state fundamental forecast) by mid-2012. Retail The retail market is experiencing limited rental growth in most capital cities due to a steady increase in market share by discount department stores and supermarket chains. Speciality tenants are tending to concentrate mainly on retail outlets located in strong demographic locations. In fact, leasing incentives are now being increasingly used to attract tenants to new or recently expanded centres. Yields are trending upwards.

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PROPERTY MARKET OVERVIEW (continued)

Specifically, (name of suburb in which property is located) is experiencing (state retail market condition is applicable), although we predict (state fundamental forecast) by (approximate time of year). Industrial The industrial market is experiencing moderate rental growth and investment activity. Construction is relatively flat, with some markets experiencing a slow down in activity. Pre-lease and speculative activity in larger markets is seeing resurgence due to a shortage of high quality industrial property for lease. Market demand levels remain steady with good quality secondary property satisfying user demand and prime space in short supply. Yields are stable. Specifically, (name of suburb in which property is located) is experiencing (state industrial market condition if applicable), although we predict (state fundamental forecast) by (approximate time of year)..

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PROPERTY ASSESSMENT

The subject property, (state site/address) can be described as (state condition/type) located in (state suburb) which is regarded as a (state type of suburb/area/locality -ie prestigious, light industrial, residential etc.) Specifications The land is (number) square metres in area. The premises are (number) square metres and include (explain design of building). Frontage to (name) street/road/avenue is (number) metres. Zoning The zoning of this land is (indicated land zoning classification). Access Access to the property can be gained via (main entrance) or (optional entrance). Public transport The property is located approximately (number) metres from (name of nearest railway station). It is also positioned on the (number) bus route. Situated on a (busy main road), the property is exposed to daily passing traffic estimated at (number) vehicles and pedestrian per day. Local labour market The site is easily accessed from the surrounding residential areas of (suburb, suburb and suburb). Age The property was built in (year).

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PROPERTY ASSESSMENT (continued)

Improvements Renovations have been undertaken in (year) and more recently in (month/year) when (indicated type/extent of renovations). Current usage The incumbent lessee has been in the premises since (month/year). The company utilises the property for (indicated type of business). Lease renewal is due (month/year). or The premises are currently (owner occupied/leased) and are being used as (indicate type of business). The property is regarded as a (state condition of the property - ie well maintained, industrial site and any positive attributes worth emphasising such as with an effective use of factory floor space). However we would encourage the following action to be taken in order to attract your target market and gain maximum impact. We have based our proposal on completion of the following criteria Include any works needing completion We believe it is vital that the property be presented to the market place in A1 condition. To achieve this, completion of the above works is recommended. (Reinforce positive attributes of the property to encourage vendor to undertake work ie The effective use of factory floor space would be enhanced if windows

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PROPERTY ASSESSMENT (continued)

were repaired and walls painted in a neutral colour. Tie in with marketing strategy - ie As we believe the property should be positioned as a quality industrial site, cosmetic enhancements such as painting and window repairs will reinforce the propertys up market positioning. If possible, include photos of property, surrounding area, position on local map. Estimate of current worth We estimate that you could realistically expect a current net rental of $ amount ($ amount per square metre) given the total net lettable area is (number) square metres. Our estimated sale price is as follows: With current tenant in possession If your current tenant agrees to enter into a lease agreement for (number) years plus a (number) year option, commencing on (date), the price range is estimated at between $ amount and $ amount. With vacant possession If the property is sold as a vacant site, we anticipate a sale price ranging from $ amount to $ amount. These figures are calculated based on a rate per square meter of the building area of between $ amount per square metre and $ amount per square metre.

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METHOD OF SALE

This property can be marketed in (list number) ways, including: (nominate most appropriate method for the particular property). Private sale We recommend you disclose the sale price when deciding on a private sale. The main advantage of this option is that the vendor normally incurs minimal up front costs compared with auction or public tender methods. However, the main disadvantage of a private sale is that there is a very real difficulty in arriving at an accurate market value. Ultimately, you could risk not achieving the price you want for the property. For instance if the property needs to go to auction as the result of an unsuccessful sale, your asking price may not be achieved because the sale price is publicly available and potential and potential buyers are unlikely to match or exceed your sale price. Public tender Public tender is gaining popularity locally although it is already well accepted and widely practised in some overseas countries. This marketing method is similar to public auction, as owners tendering properties are under no obligation to disclose the reserve price. Another advantage to the vendor is the ability to set a final date by which prospective clients have to complete their investigations and make an offer. There is also some leeway to renegotiate particular terms or conditions prior to accepting tenders. This is valuable where difficult or sensitive conditions have to be met, or are an issue. You or your representatives do not need to be present at the opening of tenders. This can be an advantage where a number of people have to be consulted prior to accepting any offer.
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METHOD OF SALE (continued)

Public auction Public auction is similar to public tender as it has the advantage for the vendor being under no obligation to disclose the reserve price. The vendor is able to set a workable bidding date, generally four weeks form the date the property is listed, enabling prospective buyers and their advisers to complete their inspections/investigations in time and allowing them to prepare themselves to bid on a competitive, unconditional basis. Both auction and tender have the advantage of being able to openly test the market (with a wide and active advertising campaign), in a way that no other system can achieve as quickly and effectively. NB: If auction is the preferred opinion, list date and venue

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LEASING AND PROPERTY MANAGEMENT

Commercial and industrial property leasing is a substantial part of our business, with (Company) ACME Real Estate portfolio of properties located throughout the Greater Smithtown Basin. We are experienced in the intricacies of lease preparation and apt negotiating with local government authorities. Our prime objective is to maximise your rental income. Regular monitoring of rent reviews and leasing renewals is therefore a critical component of our service. Our comprehensive accounting and yearly reports keeps you completely informed on the status of your investment. Importantly, we guarantee supervision of all repairs and maintenance so you can be assured your property is always in optimum condition.

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7.

MARKETING STRATEGY

The primary objective of the marketing strategy is to achieve an unconditional sale at the optimum price within the shortest possible time. The achieve this ultimate objective, we believe the property should be positioned as a (ie high quality, well maintained industrial site) with an emphasis on its major point of difference which we believe is its (ie ergonomically designed factory floor). Major attributes of the property include (ie attractive entrance way, refurbished offices, etc). As discussed previously on page (number), in order to reinforce the propertys market position, point of difference and major attribute(s), we strongly recommend that the (cosmetic refinements or structural work, etc) is/are fully completed prior to listing the property on the market. Other options worth considering Would it be an appropriate to suggest a launch of the property? If so, give reasons. Would it be appropriate to sweeten the deal? for instance, free legal or stamp duty etc if contracts are exchanged before a certain date? We are continually monitoring our marketing activity to ensure our promotions are effective. The following graph has been compiled from data collected over the past 12 months. (Include graph displaying analysis of effectiveness of promotional activity over previous 12 months.

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MARKETING STRATEGY (continued)

Promotional activity Signage Brochures/flyers promoting property to past clients Advertising and Internet Referrals/other Effectiveness 38% 20% 34% 8%

Marketing campaign Target market The primary target market is (eg local industrial developers) because (eg the site is in need of a major overhaul and the asking price reflects the derelict state of the premises, therefore attracting the attention of developers). The secondary target market is (eg the clothing industry) because (eg the premises are well suited to the installation of a large fabric factory due to the proximity of the site to the rag trades major centre of activity). Timing If the marketing strategy and supporting advertising campaign is employed, the expected timing of the sale would be (number) weeks from the time the property was first listed on the market. This (number) week period ensures ample time in which to achieve maximum exposure and promotional coverage for the property. Inspections We recommend open inspections are conducted between (staff time) and (finish time) on (list days of the week). These days and times have been chosen
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MARKETING STRATEGY (continued)

deliberately because (provide reasons why the target market would find these days/times suitable and why the time allocated would maximise the buildings attractiveness.) Direct marketing List most appropriate means of promoting the property. for instance, is it appropriate to recommend the production of a brochure or flyer? We recommend the production of an A4, four colour brochure which would be mailed to the primary and secondary target market segments who are either currently listed on our extensive data base or, alternatively, who will be sourced from reputable mailing lists. The brochure would consist of an aerial photograph of the site, side plan of land and location map. Internal photographs of the property will also be displayed alongside professionally written copy designed to sell the virtues of the property. or We recommend the production of an A4, two colour flyer which would be mailed to the primary and secondary target market segments who are either currently listed on our extensive database, or alternatively, who will be sourced from reputable mailing lists. The flyer would consist of descriptive copy including a comprehensive property assessment and information on the method of sale. Photographs would depict the property/land in a very favourable light. and A personally addressed covering letter would accompany the brochure/flyer. Importantly, each addressee would be followed up by telephone to establish

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MARKETING STRATEGY (continued)

interest and ultimately, to encourage attendance at an obligation free property inspection. Signboards Signboards situated in front of listed premises are regarded as critical to the promotion of your property in order to attract passing trade. Signboards are regarded as the most cost effective way of promoting your property. It is estimated that 38% of interest in your property will be a direct result of well positioned signboards. Media campaign The following newspapers and magazines have been targeted as the most appropriate in which to run press advertising due to their (ie relevant readership, high/targeted circulation, targeted distribution, , cost efficiency, etc). We recommend using this mix of local and major metropolitan papers in order to reach a wide base of prospective buyers. List publications with basic statistics on readership/circulation details eg Herald The Herald is the bible for the Smithtown property market. It has an estimated relevant readership (decision makers who purchase property) of 20,000 Monday to Friday and 47,000 on Saturday. Smithtown Review The Review concentrates more specifically on the commercial and industrial real estate market. The total relevant readership of decision makers who purchase property is 17,000 Monday to Friday.

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MARKETING STRATEGY (continued)

(Area) City Council is one of the largest council areas in (City). It is serviced by two local papers: The (Name of local paper) and the (Name of local paper). Both are suitable advertising mediums in which to promote your property to the local population. Local Paper The (Name of local paper) has an estimated local readership of 96,000. Of that readership, 13,000 are positioned in the top of the socio-economic scale. Local Paper 2 The (Name of local paper) covers regional issues and news in the area. Its circulation is estimated in excess of 47,000. Local leadership estimated at 55,000. Include samples of advertisements stating size, position and cost. NB Is it appropriate to use a press release to real estate media in conjunction with advertising? If so, explain rationale. ACME Commercial Property Guide (if appropriate) We recommend this medium due to its (state reasons why ie low cost, high circulation/readership, distribution, credibility, etc). Promotional schedule and costs We work in conjunction with our advertising agency who can negotiate excellent advertising rates and provide professional advice on placement and layout of the advertising. Provide cost breakdown on all recommended advertising including the direct advertising material provided, information on advertising size, positioning, placement and number of insertions. Include cost details for signboard and auctioneer/auction room if relevant.
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MARKETING STRATEGY (continued)

Advertising Publication Insertions Size Position Cost Brochure Size Format Quantity Unit cost Total Flyer Size Format Quantity Unit cost Total A4 Double sided, two colour 2000 $1.00 $2,000 A4 Four colour, four pages 2000 $5.00 $10,000.00 Herald Three insertions per week over a four week period Monday, Wednesday and Saturday eight cm x three columns Real estate section $300 per insertion including production costs

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MARKETING STRATEGY (continued)

ACME Commercial Property Guide Size Format Position Insertions Cost Mail out (postal costs) Quantity Distribution Cost Signs Cost $ 1500 jSmithtown metropolitan $3,000 eight cm x three columns Four colour Right hand page One per month $ cost

Auctioneer Fees (including room hire and slides)

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AGENCY FEES

We would be delighted to handle the sale of your property and can guarantee our absolute dedication to achieving the best possible sale price for you. We would like to propose the following fee of (3%) of the sale price. Our fee structure reflects our professional and comprehensive service and we would be happy to explain further the rationale behind this fee structure. Advertising and promotion costs are not included in our fee, however, (Company) Commercial will offer you a 50% refund on these costs once the sale is complete.

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CONCLUSION

Thank you for giving us the opportunity to prepare this market report on your behalf. The information contained in this document is intended as a guide only. Rates and calculations should be regarded as estimates and based on information available at the time of writing. The advertising schedule has been developed to achieve maximum exposure in order to reach a significant portion of your potential market, cost effectively. We will contact you soon to discuss this proposal further. (Company) ACME Real Estate looks forward to working with you towards the successful sale/auction/lease of your property.

Name Principal

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