RE4202 Advanced Real

Estate Marketing
Pre-lecture Slides for Commercial Leasing Seminar
Eddie Ng Siu Yi
Ita Dwi Lestari
Jerry Tay Guan Chen
Le Thu Trang
Rachael Ang Kai Li
Teo Jia Wei Trinity
Commercial Leasing
A commercial lease is a contract agreement
between a business and landlord for the
rental of a business space.
Commercial Leasing
Singapore (CBD)
Small-space occupiers continue to support demand
Rents trend higher(4.6% in Q2) as office vacancy tightens
(limited supply with increased demand)
Capital values rise slightly higher as investors search for
higher office yields
Commercial Leasing
Outside CBD (Fringe Area)
Growing interest in Suburban Office spaces
More commercial hub in suburban Singapore (ie.Buona
Vista, Paya Lebar, Jurong Gateway)
Increasing demand with improving transportation system
To show accessibility to city centre for business
With increased accessibility and lower rental rates, there will be
demand for office leasing in areas outside CBD
Market Outlook
Demand
Small-space occupier expected to continue
supporting leasing activity in CBD
Supply
No new office development in second half of
2014 will result in declining vacancy rate/
Rents to continue growing at a gradual pace.
Quarterly increase in rental growth of CBD
Grade A offices fell from 4.3% to 2.3%
Grade AAA offices recorded the steepest fall in
rental growth
Marketing Collaterals
Definition
Collections of marketing communications pieces used
as part of an organization's overall marketing strategy.
i.e.
Materials used to support the sale of a product or promotion
of a service.
Types of Marketing Collaterals
1. Above the Line (ATLs)
Traditional paid media
Broadcasted & published to
mass audiences
E.g. television, radio,
outdoor, magazine,
newspaper advertising and
Internet advertising
Types of Marketing Collaterals
2. Below the Line (BTLs)
Non-media communication
Targeted approach to specific
audiences
E.g. direct mail drops,
brochures
ATLs v BTLs: Pros & Cons
Benefits of ATLs
Wide Reaching
o Impact of mass media
Environmental Friendly (for traditional print
media)
o Saves resources
Time & Cost Efficient -
o Narrowing down market segment translates to an
increase in time, effort & money needed
o Not necessarily a proportionate payoff
Benefits of BTLs
Inexpensive
o No payments made to intermediaries unlike ATLs
e.g. host website, malls, television & radio stations
Measurable
o Easily able to track and quantify effectiveness of
campaign via response rates
o Unlike ATLs indirect responses e.g. general awareness
Direct & Personal
o Need not go through media
o Allows for personal touch, fitting for consumer centric
strategies
o Increases closing opportunities
ATLs vs BTLs: Conclusion
Use ATLs when...
Promoting mass market products
Target group large, difficult to define
Good branding already established
Use BTLs when
Products must be seen in person
Specific audience in mind
References
http://www.ap.jll.com/asia-pacific/en-
gb/Research/asia-pacific-property-digest-
2q-2014.pdf?dcf6ca41-f3fb-4357-bce4-
539c7a447124
http://theadvertisingclub.net/index.php?op
tion=com_content&view=article&id=3256:d
ifference-between-above-the-line-and-
below-the-line-advertising&Itemid=175