The effects of COVID-19 are far-reaching for all industries, and the commercial real estate sector is no outlier. All asset classes have had to deal with the ebbs and flows of tenant responses to this environment - at the forefront payment defaults, store closures, and lease terminations.
Naturally, vacancy and delinquency rates have spiked, putting pressure on owners and operators of commercial space. Two departments that we've encountered who have felt increased pressure during this period are the marketing and leasing teams alike.
With a unique vantage point, ATYPICAL has been able to support and bolster the leasing and marketing departments' efforts to navigate and thrive in these unprecedented times. The results we have experienced during and transitioning out of COVID-19 have been telling and will most certainly contribute to our agency's approach going forward. At its core? Increased collaboration.
Tenant Sentiment & Psychology
The individual psyche has been influenced by the global pandemic with wide-spread effects, which has certainly impinged tenant sentiment. There are many behavioral biases which have been stirred and magnified as a result of this period, one we feel has had a truly material influence on (prospective) tenant behavior is the Quo Bias.
This has to do with individuals falling into a lull - a stupor - a haze - where an affinity for the current state of affairs is preferred. Any deviation from this is perceived as a loss (or left-field), which sees a natural convergence toward what everyone else is doing (which is not much).
This monotony manifests itself by individuals doing what is routine - normal - the status quo. They don't actively seek out that which is 'unknown', but rather need a nudge to do so. We have been able to achieve this with strategic paid media campaigns that incorporate LinkedIn, Facebook, Google Ads and industry specific publications.
What Does This Mean for Lead Generation?
Unfortunately, there is no silver bullet. A successful lead generation campaign needs to built from the ground up. To cut through the clutter (not merely add to it) and say something that truly means something to your audience needs to be tactful. It needs to be targeted, resonant, and (most importantly) of true value to the receiver.
What We've Experienced
By blending the above three insights: increased collaboration, overcoming behavioral biases, and cutting through impinged monotony, we've experienced some telling results over the past 3.5 months. Using these as a baseline, here is what you can expect from a LinkedIn, Facebook or Google campaign run by ATYPICAL.
Spend $3,000 advertising dollars, engage 2,000 tenants, and received roughly 60 leads for your leasing department.
Tenants are looking for space… they just don't know it yet.