Five Things an Offering Memorandum Must Be
Every commercial real estate deal, those that are made and those that are not, is a journey, every step leading to an outcome, either a closing and a celebration or watching it all crumble apart leaving one side picking up the pieces, wondering where it all went wrong. A bad turn here or there in the journey can be the end of the road for a transaction just as the champagne corks were about to pop. That’s why smart brokers leave nothing to chance. Every piece matters. And few documents matter more than a well-crafted offering memorandum.
You know the mechanics and purpose of an offering memorandum. It’s an essential legal document that provides all the leading selling points for a given property. But an offering memorandum is about so much more than all the essentials they typically include. An offering memorandum sends a message to its readers about the broker behind it. When done well, the message it communicates is that the broker behind the document is smart, serious and professional. The broker takes pride in doing things right. The broker is knowledgeable and trustworthy.
So, what’s essential for an offering memorandum to deliver that message? It must be five things:
Complete. A professionally produced OM delivers on all the key components, from the executive summary to the demographics to the financials, everything the prospects expects from this essential document is there, neatly packaged and presented in a way that showcases the professionalism of the broker as well as the vital metrics on the property.
Visual. Sharp photographs, graphics and design all elevate the numbers and words of the page and create an air of excitement about the deal and all its players. Visuals bring both the OM and the property to life. Sharp, attractive photos put the property in its best light, and professional graphics and design put information in the prospect’s hands in a way that is easy to consume and consider.
Accurate. The first order of business in a record like this is to mind the details and get every one right. Prospects need to know their broker has been painstaking in ensuring the facts are correct and that the broker’s word is reliable. An OM that is accurate in its every detail sends a message that the broker behind it is precise, takes care with facts and is a pro through and through.
Compelling. The writing must get the facts right and more. The writing must compel, and it must persuade, and it must do all this intelligently, with respect for the prospects and their knowledge of the game. The writing must be precise, capture all of the key points, demonstrate knowledge and expertise and communicate to the prospect that the people behind this deal know their business.
Closing. Every document, whether it’s a business card, brochure or an OM for a deal that you’ve been working for months is a potential selling tool, if it bears your company’s name. Every one of these is closing for you, if they are skillfully produced. Few documents are more essential for a commercial real estate broker than an OM. Just like you, they should always be closing, always driving home the message you are someone with whom people want to do business.
Looking for professional guidance in ensuring your offering memorandum hits all these marks and more? Contact us for a free chat on how to get the most from your offering memorandums and all your other commercial real estate marketing efforts.