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November 16, 2011

Long Tail and Real Estate

It’s not talked about often, but corporate real estate is the ultimate long tail item.  Every city from 10MM+ population to 100 have real estate that can be occupied by businesses.  If you need something specific, it’s out there.

The theory behind the Long Tail is that everyone wants or needs something and will acquire the solution that best matches their need based on their ability to find the solution with the closest alignment.  In the days of bricks and mortar stores and manual search the solution was almost always to select a bestseller because it was difficult to find the niche items.  With the rise of the internet and digital search it is now possible to find an item nearly personalized to an exact problem or situation.

What’s the point of this?  We’ve already gone through the fact the real estate data isn’t prevalent enough to create a fluid search capability to find the perfect product at the perfect time.  With the long tail, just as importantly is positioning your product as something that isn’t just generic and ready for anyone.  Instead, look to align your space as something that is perfect for the types of clients most likely to pay you a premium.  Residential home stagers have created an industry doing this on for houses.  Why aren’t landlords doing it for the buildings?  It’s possible to take a more targeted approach and achieve better results.

There’s someone out there for every product, the hard part is finding them and making the deal happen.  Don’t set yourself up for just anyone passing through.  Target yourself to the best user.

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