Why You Need To Pick A Niche and Run With It

Important post today.  One of my friends opened a commercial retail brokerage about a year ago.  Since then I have seen his business bleed into the gray area of "full service" real estate companies.  He started as a landlord rep, then moved into landlord and tenant rep, then added in office leasing, and then added in land, which was residential land, but since he was selling to a builder, he considered it commercial real estate.  Today he started offering business brokerage services.  

So lets define "Niche."  According to Google a Niche is "A shallow recess, especially one in a wall to display a statue or other ornament."  In business, a niche is a specific area of expertise, and a good thing to remember is that the RICHES ARE IN THE NICHES.
 

In real estate, there are broad niches that people fall into, namely commercial, residential, industrial, etc.  These are more categories than niches.  To really "niche down" you need to break categories into specific customer bases.  

Example:

• Niche - Commercial Real Estate
• Niche Down 1 - Retail Commercial Real Estate
• Niche Down 2 - Retail Commercial Tenant Representation
• Niche Down 3 - Retail Commercial Restaurant Tenant Representation
• Niche Down 4 - Retail Commercial Pizza Restaurant Tenant Representation
• Niche Down 5 - Retail Commercial Wood Fired Pizza Restaurant Tenant Representation

You niche down as far as your market will allow.  If your town only has one wood fired pizza restaurant, you should niche up to a level where you can sustain a business, OR offer your services to wood fire pizza restaurants in other areas.  

5 Reasons Why You Need To Niche Down Now

1. You Can Name Your Price - When you are the authority in a niche, you can charge more.  Your clients will have the option of using a house jockey that knows the market, or a specialist (you) who understands their business.  You can spend more time learning the ins and outs of the niche, and also network clients together, which is an added benefit. 
2.  No Misconceptions - Honestly, many people broaden their business, as my friend did, because they are not doing well in their niche.  I feel that clients see this too.  Oh, John?  He was doing retail leasing, but I think now he is doing office or something or other.  
3. Its Easier - It is easier to both find prospects and sell prospects on your services if you are a specialist.  Target marketing becomes easier.  
4. Additional Services - Because you are a specialist, you can up-sell your clients to additional services that help their business because you get their business.  
5. You Can HIRE Other Niche Specialists - In the beginning of the post, I mentioned "full service real estate companies.  This is how the GREAT firms do it.  Is the oracle speaking of an upswing in nail salon openings?  Hire someone to niche into that market.  Has Wood Fired Pizza, Inc slowed down expansion?  Hire someone to do office leasing.  Teach them how to niche.  

Agree or disagree, finding a market and focusing on it is a key to making money in commercial real estate.  The other key is to pick up the phone and....

GO MAKE SOME DEALS!