city buildings at sunset

How to Make More Commissions in Commercial Real Estate Using Strategic Goals

Some things really matter in commercial real estate and I like to categorize them as ‘strategic goals’.  They are the goals to generate and support results in your real estate business. If you achieve those goals it will have a valuable impact on where you are heading as a broker or agent.  They are the big things that can help drive your business forward.

Don’t Be Ordinary

It is common for ordinary agents and brokers to have a ‘wish list’ but little or no ‘goal focus’.  That is perhaps the largest reason why they struggle.  Those same ordinary agents have big fluctuations in listing and commission activity.  On average their commissions at the end of a financial year are typically ordinary.

Make no mistake here; there are many opportunities to be had from a career in commercial real estate brokerage.  Converting those opportunities takes directed action; that is where the strategic goals come in.

Here are some common observations to be made in broker activities:

  • Every day there will be ordinary issues that will divert your focus; those things will have to be done by someone. If that is you, then devise a time each day to get that administrative work under control.
  • Clients can take a lot of your time and put pressure on your results.
  • Your peers and competitors will ‘infiltrate’ your day and its routine.
  • It takes a good degree of effort and persistence to set new habits and break old ones.

Whilst these things are frustrating, every broker or agent has the same elements of the market to work through.  Some agents resolve their challenges; others don’t.   The top agents break through the pressures because of persistence and action.

 

Strategic Goals for Brokers

Here are some strategic goals worth considering and implementing in your career plan:

  1. Listings by type – get more exclusive listings so that you are pulling away from open listings. Exclusivity is the way to build market share. When you control your listing stock, you can control the enquiry, the inspections, and the negotiations. There is no better way to build market share. Everything else is a matter of luck, and luck has nothing to do with growing a commercial real estate business.
  2. Listings by volume – look at the property types and then the volume of listings that you are attracting. You need plenty of listings over time. Your pipeline of prospecting needs to support that listing process with plenty of strategies across marketing, inspections, and territory management. Convert more listings by volume and make sure those listings exclusively controlled.
  3. Shorter time on market – be known as the agent that gets things done. Tell the clients and prospects of your sales results locally so that they remember you as the expert that they can use at the right time.
  4. Commissions – look at the amount of commission that you are converting from each completed transaction in sales and leasing. The amount of commission will vary by property type and size. On that basis, focus your efforts into the properties that bring the better returns and attract the higher levels of interest from tenants and buyers.
  5. VIP clients – segment your clients so that you know where the better clients may be located and what they may require. Set some clear factors and criteria so that you can work with the better clients for the location. Spend the majority of your prospecting time in building your VIP client list. Service that list comprehensively.
  6. Database size – throughout the year there will be fluctuations in the commercial real estate market. Some clients and prospects will shift their interest when it comes to ownership and occupancy. To work through that change and churn, keep adding new people to your client and prospect list each day. Set some simple targets to build the client list with the right people each day, and do so in the right segments or property precincts of your territory.
  7. Signboards – you should have plenty of signboards placed on exclusive listings in your control territory. Those signboards will always improve your market profile and presence; they will help you generate more enquiry. The agent or the broker with a dominance of signboards placed locally will usually attract better levels of local enquiry from business owners and investors. As part of your personal approach to marketing, track the number of signboards that you are placing into your location and within certain property types.
  8. Meetings – create the contact systems that encourage meetings in a regular ongoing way. It can take quite some time to convert a new person to the level of prospect or client in your database. Personal contact will help you achieve more momentum, so get your meeting program established in your database activities. Set some targets for new meetings each day. Track the meetings and the results achieved in each case.

Given all of these things, you can set some strategic goals relative to your commercial real estate business and career. You can track those goals throughout the year so that you can see progress when it occurs, and you can make adjustments where necessary. That is how you can grow your commercial real estate business in the right way over time.

listing skills

Listing Strategies – Stress the Benefits of Listing with Your Brokerage

When you pitch and present your listing strategies to a client, are you clear and precise about how the client should move ahead with you and why that is the case?   Help the client see that you are the best solution to their property challenge; be special and real to their situation and property asset.

So how can you do this?

Give them some property listing and marketing strategies that then cannot refuse or ignore.  Show them that you really understand the current situation that they find themselves in, and that you have a definite path of resolve.  Have some stories from the location of others that you have helped move ahead in similar property situations.

Here are some other ideas to apply to the listing discussion with the client or prospect:

  1. Inspection strategy – demonstrate that you have a clear strategy and method of inspecting the property that will give the client a better chance of attracting offers from the target market. You can walk the client through the property as part of that strategic approach; you can also use your mobile telephone to record the inspection process in video, and show them the factors that you find really important to the property marketing and presentation process.
  2. Short listed interested parties – using your current database, you should have a short list of buyers or tenants to apply to the property inspection as soon as the listing comes on market. With suitable anonymity, show the client the short list so they know that it exists and explain how you will be using that list in moving ahead.
  3. Marketing solutions and alternatives – your marketing recommendations for the asset should not be ordinary, so take the time to build a marketing campaign that reaches deeply into the target market. Provide 3 alternatives with the campaigns so the client has some choices and budget alternatives.  Give the client your clear marketing recommendations so they can see the best ways forward, and show them samples of other adverts used locally and tell them why certain solutions are better for their property in the current market conditions.
  4. Targeted marketing and personal direct marketing – the property has to be placed firmly in front of the current prospects and target market that you have in mind. Explain how you will do that, and provide the client with a way in which you will be communicating progress on each stage of the campaign.
  5. Negotiation control – tell the client how you are to be preparing for the negotiation well before it is to occur. When you have qualified a seller or tenant as the case may be, you will have stages of qualification and communication that should be professionally controlled so the offer is encouraged in the correct legal format.  Exactly how will you do that?  Explain those facts to the client as part of your listing and or presentation pitch.

To capture the interests of the client as part of any listing presentation and brokerage pitch, you have to stand out as relevant and real for the location and the property type. Help the client see that you are the best solution to assist them through the challenge with their property and the current market conditions.

To convert more listings over time, make sure that you are providing your clients and customers with a clear strategy to move ahead that is carefully crafted for the situation.

city at night

Make Every Minute Count – It Makes Your Commercial Real Estate Brokerage Career a Lot Easier

As you strive to improve market share, client lists, and commissions in commercial real estate brokerage, your most important resource is that of time.  You simply have to make every minute in your working day count, by focusing on the right things.  (NB – You can get our other free commercial real estate broker resources here)

Let’s say you have 8 to 10 hours in the average working day where you can do some valuable things relating to your career.  At least half of that time can be lost to the the unavoidable pressures of administration, clients, and team issues.

Some things you cannot avoid, so I get that…….. however at least 1/3rd of your business day must be well controlled towards the outcomes that you seek.

In this audio recording, I talk about the valuable resource of time in a property career and how you should use it.  In sales, leasing, and property management, the factors of time will impact your day, so set up some rules.  As the seasons of business change during the year, measure your brokerage efforts against an index of effectiveness.

 

city at night

How to Exponentially Increase Your Business Based On Trust

Trust is a big part of the commercial real estate business today. The clients and the customers that we serve will generally be attracted only to the brokers and agents that they trust; there is too much at stake with the property challenge to do otherwise.  How do you rank on this assessment?  NB You can join our free real estate training here.

 

Certainly market share and recent property activity will also have something to do with client trust, attraction and transaction opportunity, but ultimately the clients and the customers that we serve want to trust the agent that they work with.  Your local profile has to support that trust process.

 

Confidence about your services, and a complete coverage of the local property market will help you connect to the client in this trustworthy way; professionalism supports the process.

 

Give the client reasons to use your services; get away from the generic ‘pitch and dump’ process used by many ordinary agents.  Be special and be real when conveying your professional skills to the clients that you serve.

 

People Rule!

 

People are at the centre of our real estate opportunities today. Whilst you may know a lot about the properties for sale or for lease locally, you do need to know the people behind each and every property. They need to trust you to get the best price or rent in their property challenge.

 

The message here is that you can significantly increase your commercial real estate business based on facts, trust, and regular communication. There are plenty of clients and prospects in the local area to connect with in a continuing and relevant way. Most agents struggle with the communication and connection process; that is an amazing opportunity for the agents that can work to a plan and a strategy.

 

So what are you doing with this now?  Your prospecting model and its ongoing contact process will be critical to the real estate business that you want to create. When the market slows or the economy struggles, your database and the people that you know in the database will be the foundation for ongoing business opportunity. The agent with the best database and relevant client contact processes will usually be highly successful in any market at any time.

 

So what can you do here? Over time you can build elevated levels of trust with your clients and prospects through a deliberate prospecting and marketing process. You can provide relevant information for the location and the various property types.

 

Ongoing Contact?

 

Through deliberate and ongoing contact, you can help local business owners and property owners with their property challenges; you can help them with information relating to rents, prices, time on market, and future supply. Build the long-term relationships with the people that really matter in the property market locally. Local area relevancy is really important to your client and customer contact processes.

 

So let’s help shape your professional profile with the people in your local area.  Here are some ideas to help you become a trustworthy agent or broker with the people that you know in your town or city:

 

  1. Seek to understand their property situation as it exists today. There are differences to look for with investment and property ownership. Will the property provide all the elements and attributes they require into the future for both ownership and or occupancy?
  2. Look for pressures and weaknesses in any property and the location. Are some of the local property factors changing that could shift the balance of property performance or ownership locally? Advise the client of the local factors that can influence their property challenge. Provide solutions to move through the challenges; make sure that your solutions are not ‘generic’.
  3. Position the client for the future so that they can ride out any difficulties in the best possible way. Show them how you can help them in a valuable and tangible way.  Show them how you will put your resources into their property challenge; be relevant and real as you do so.
  4. Improve property performance through better tenant mix decisions, cash flow improvement and healthier lease documentation. It takes time to shape a property and a tenant mix for the future.
  5. Off market recommendations are valuable so understand how you can introduce the right people to the property and resolve a client’s challenge early, before it becomes a bigger issue. Match up people and properties wherever possible. Off market transactions are common when you know a lot of local property owners and occupiers.
  6. Confidentiality at all times applies to all property transactions and your client relationships. Remember just who your client is and how you can help them.  They pay your commission!
  7. Regular contact with local information will help with all of your clients. Put relevancy into your client and prospect contact processes using local information in the form of charts, photographs, and case studies.
  8. Remember the conversations and facts with all of your clients and customers as you connect with them into the future. You do this so you can repeat the right facts and solutions in the next conversation.  Let the client see that you really do have full control over the issues with their property, the facts as they exist in the local area, and their concerns in moving to the next step.
  9. Provide clear recommendations to your clients with all your property solutions. Give the client 2 or 3 choices as you talk about their property and its marketing, the upcoming negotiations and the best available listing processes.  A client that has a few choices will not feel pressured and thereby will be more inclined to make a good decision in a timely way to help the property marketing process move head.

 

These are all valuable strategies to adopt with your clients and prospects.  Get closer to them as they work through the problems of property ownership and occupancy.  Be the top agent that they really need; market yourself accordingly.

city at night

Strategies for Building Commissions in Commercial Real Estate Brokerage

If you have chosen commercial real estate as your preferred career, you have likely done so for a reason.  Perhaps someone has introduced you to the profession, or you have seen what some agents do and achieve in their career and you want to get similar results.

 

Many ‘Roads’ to Take in Commercial Property

 

Certainly there are many ‘roads’ of focus and activity to take in commercial real estate brokerage; all of those ‘roads’ are specialized in some way for both property type and location.   All of those ‘roads’ involve client contact, personal performance, commissions, and listings.

 

You have to be a person that will focus personal effort into all of those things, and that is certainly the case if you want to get more or improved results from your industry and from your efforts over time. 

 

You need a plan as an agent or broker, and that plan when started can be refined over time.  The commissions come to those that work with professional skills that are improved over time.  Are you that person?

 

Get More Real Estate Traction and Focus

 

Here are some ideas to help you get more traction in your career as an agent or broker, and attract better levels of commissions:

 

  1. Specialist skills – choose the property types that you understand and can match your professional skills into. Boost your skills through practice.  There is no point specializing in something that sells or leases in low volume.  Look at the end result of what could happen in your property specialization.  Improve your skills through deliberate effort.
  2. Local area – choose the local area that shows the best possibilities for your efforts over time. Review the streets and precincts.  Look at the buildings and investment properties in the chosen location.
  3. Owners, Tenants and Business owners – you can work for clients in all 3 of these categories, but in saying that, each category requires understanding and unique qualities of service. Given your location, how much business could you extract from the segments?  You could be an agent for landlords, tenants, buyers, or sellers; match your services into the segments that you prefer and then prospect the segments comprehensively in an ongoing way.
  4. Referrals – when you know a customer or client with reasonable familiarity, the referral process gets a lot easier. Encourage your clients to tell you about other people that they know who may be interested in property investment.
  5. Repeat business – some clients will transact commercial property in a number of different ways over time. That is especially so if they own multiple properties or a portfolio.  Review your clients on that basis.
  6. Quality properties – work with the better quality properties as they will attract more inquiry and that will lead to a better churn of listings and properties. As you work with more listings piggy back your listings and inquiries so you can move an inquiry from one property to another and eventually find the right solution for the buyer or tenant.
  7. A quality database – review the database software that you use an understand its potential for you in finding the right people to transact real estate in some way. Spreadsheets don’t offer a complete level of coverage; the larger that they get, the more difficult it is in finding the right people to match into a property listing or inquiry.

 

There are some special things that you can do here with a listings and commissions focus.  If commercial real estate is your career, then the elements mentioned here will be vital to the outcomes that you seek.  Refine them and improve them over time.  Top agents are created and shaped over time; luck has nothing to do with the process.  Your career and its results are influenced by deliberate choices and refined actions.

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

city skyline at night

The Important Advantages of Knowing Your Commercial Real Estate Market

In commercial real estate brokerage there are plenty of things happening in most property markets in a continuous way.

Businesses are looking to change or relocate their activities to improve corporate performance and income generation; property investors are looking to expand or change investment portfolios. On that basis there are some good things for every broker and agent to tap into providing they spend the time in looking for the indicators and the pressure points of the local property market.

Spend the time in researching your local area and the properties contained therein. In a logical and direct way review the property market, the changes, and the churn factors that are likely to bring about new business opportunity.

In this audio program John Highman talks about the importance of understanding your property market and the things that are changing across sales, leasing, and property management activities. When you know what is happening within your region and within your targeted property types, you can position yourself for further commissions and listing opportunities.

Listen to the audio program here:

city buildings in setting sun

Lead Generation Techniques in Commercial Real Estate Brokerage

Lead generation in commercial real estate remains a special process for brokers and agents.   There are things to consider as you work with a variety of clients, be they investors or business owners.

(N.B. these audios are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage business results…. Get your access here)

Mastering Client Contact and New Business

The fact of the matter is that leads are always available to those people that look and question the events, facts, and people in the property market.  Asking questions at the right time, and noting the changes in the property market will help you find your next opportunities for listings and commissions.

In this audio program, John Highman, Commercial Real Estate Coach, talks about the different ways to generate leads for listings and property transactions.