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Handling Objections in Commercial Real Estate Sales or Leasing

Objections in the negotiation of commercial or retail property sales or leasing are common place. Everyone will object to something; everyone has to have a win of some type or other. This is where the negotiation skill of the agent or salesperson has significant bearing on the outcome of the transaction.

Whether it is in the price, the rent, or the terms and conditions of the deal, the objections will occur. Real estate agents have to handle the objection and do so very well; confidence and competence are the keys to how you progress the negotiation. Practice and skill is needed to consistently convert and close the transaction.

Now you will not close every deal for the simple reason that some demands are just too excessive or unreasonable. You should however have a base plan for working with and through objections when they occur. Here is one form of ‘objection control’ that may help you.

  1. In the first instance, you should hear them out to see what their opinion and demands are. This also gives you time to think through the various alternatives of response. Encourage the client or the prospect to completely explain their position.
  2. From stage one above you can then paraphrase their position and opinions back to them. This essentially means that you restate their opinion in your words. It helps them to understand and see that you are completely on track with where they are coming from. It also shows your respect for what they’re saying.
  3. From stage 2 above, you can then the question the facts and details of their position. The more questions you ask the better. Drill down and get them to talk about any matters of concern or urgency. It is quite likely that the answers provided will give you an advantage in response.
  4. Given that you now fully understand their points of negotiation, you can give your opinion or position subject to the instructions of the client. It could be that the rent or the price on the property is under negotiation and offer. Having third party information and price or rent comparable evidence from other local properties will help you with the points of discussion.
  5. Subject to the depth of the issue and points of negotiation, you can seek time to consult with the client for their instructions. Sometimes this activity is more strategic than necessary, however it does give you the time to reposition your thoughts and alternative counter offers.
  6. After careful consideration of the matter under negotiation, you can give a distinct and simple answer. Negotiation should always be a simple process. If many points are being negotiated, it pays to have a list process to simplify the counter offer. Work on the easiest things first to get some form of agreement between the parties; the harder and more detailed parts can be handled towards the end of the negotiation after small agreements have been reached.
  7. Every offer and counter offer should be put in writing. This gives some form to the negotiation and allows people to sign off on the matters under discussion. If the transaction is very complex, then some form of heads of agreement will simplify the offer and counter offer process. When the key elements of the transaction have been agreed, you can then bring in a solicitor to document the total contract of sale or lease of property.

You can get more ideas and tips for commercial real estate agents at our website

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Third Party Confirmations in Commercial Property Sales

As the local real estate agent it is quite common when you are selling commercial property, to get to a point where the seller will not negotiate down on price, or accept that the value of their property is less than what they want. More often than not, they will then tell you to get an offer before they will talk about reducing the price. You know that offers will not come in until the price has been reduced significantly.

Do Not Advertise

A property that is well away from market price should not be advertised in this market, as the first few weeks of marketing at the high price will kill ongoing enquiry.

This is where experience and negotiation skills of the agent become quite important. The reality of the situation is that the offers do not come in to you because the property is priced well above the market; you know that the only way to get an offer or even interest from anyone is to get the asking price of the property down.

Where are the Buyers?

There are buyers out there waiting for the right property at the right price. When you are marketing a property, a higher price will kill any enquiry, it’s that simple. We are not working with the 10 buyers on one property that we had 4 years ago; more often than not today we are seeing only 1 or 2 buyers for each property. Only a few buyers can act in this market, and that is why we must work with what we have.

In this tougher property market, the buyers are more selective and the ‘heat’ of the market has gone. On that basis we are negotiating with fewer buyers and the buyers are less inclined to negotiate until they are ready. Property negotiations today are slower and tougher. The agent will more often than not have negotiation challenges with the seller and the buyer.

Third Party Proof

The only way to handle sellers and buyers that are reluctant to move on their asking figure or offer is to use a third party authority or proof on the price. You have to get evidence of the reduced prices in the market and then use the evidence in the negotiations.

Third party evidence is not fabricated, and it is the ‘real deal’ when it comes to shifts in prices. It is the comparable evidence of other property sales in the local area. It shows your seller that things have changed.

It will take you more time to get the price ‘evidence’ but it is worth it, and will support your case for a more realistic price on the listing. It will help you close the deal.

If you want more tips for commercial real estate sales and leasing in this market, visit our website at

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Evaluate Your Local Area Marketing

When you work as a real estate agent in commercial real estate it is important that you implement and monitor your local area marketing campaigns. Commercial real estate is a property type that is centred on the sentiment and activity of the local business community. Your local area marketing should be centred on three parts of the local property market. That is:

  • Property Investors
  • Business Proprietors and Tenants
  • Property Developers

Each year you should set aside funds for local area marketing. That is the marketing of the individual salespeople and also the real estate office. The marketing tools available for your promotional purposes should be systemised within the groupings that work locally. They will usually be:

  1. Signboards on properties available for sale or lease
  2. Internet Advertising on your website
  3. Internet Advertising on generic industry based websites
  4. Success letters to the local property owners and businesses
  5. E-mail marketing through specific newsletters
  6. Hard copy brochures and flyers specific to the property type or the individual property
  7. Direct mail to the local property owners
  8. Direct mail to the local business community
  9. Just listed letters to the adjacent and nearby property owners
  10. Referral business through previous contacts
  11. Established relationships with the older transaction clients
  12. Database pipeline regular contact
  13. Cold call prospecting in your local area
  14. Canvassing of the local streets relative to the commercial property zone

So these are all marketing tools to be used by the salesperson or real estate office. Any enquiries generated should be tracked to the particular originating point of contact. In that way you will know the marketing tools that work more effectively for you.

Today there is a tendency to take the easy road when it comes to property marketing. Electronic Systems of contact such as e-mail, email newsletters, and Internet Marketing are convenient for the salesperson to use, but they should not replace the traditional advantages of personal contact and physical meetings.

In simple terms, tracking your marketing activities will allow you to understand the processes that really do work when it comes to attracting enquiry. Each and every enquiry should be entered into the property enquiry database for regular ongoing contact given the desired property type or attributes needed. An up to date database is of high value to your real estate business and commissions.

When you evaluate your marketing you can make better decisions when it comes to attracting property enquiry for your clients. The agent with the best local database will be of high relevance to the property owners needing help with a property challenge. Use your database and your marketing tracking activities as points of difference in selling your listing proposals.

You can get more tips for commercial real estate agents at our website

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When Things Get Tough the Tough Get Going

In this commercial property market, as an agent you have to be tough and you have to think tough. No advantage is gained by looking at the negatives and sitting back mooching around in the office. Far too many agents and salespeople support each other with excuses and obstacles when they can’t convert the listings or the deals.

The best way to handle an industry slowdown or market change is to prospect and cold call a lot more.

Double your prospecting starting right now; when you talk to more people and capture the enquiry into your database things start to move. Action beats every obstacle you come across. Give me a salesperson that takes action and I will show you a success to be tapped.

In a commercial real estate clients office that I have something to do with, they are consistently pulling in 30 deals a month between 7 sales people and that is in a slower market. What does this say? Get active and the results will come in. Keep pushing ahead; that’s the rule.

Speak to more tenants, talk to more landlords, find some business leaders to talk to; they all like to talk property in one form or another. Some of them will need help. You are the ideal agent to help them.

Check out my website if you want some more ideas from the ‘Commercial Coach’. Go here

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What Does a Commercial Property Salesperson Do Over Christmas?

It’s an interesting question to pose. What does a commercial salesperson do over the Christmas break? Most of the guys I know take off somewhere to get away from the office. They say or think that the market is slower in January and hence they will not hang around. My experience however says that there is a lot of business out there in the market to be captured and a good time to do that is in January before others come back into the office.

The fact is that January is a great month to make the calls and meet the people. Most property investors or business owners are thinking about what they will do with their property or tenants in the coming year; isn’t that a great time to be out there talking to people? I think it is.

If you want some more ideas about being a great commercial salesperson in your market, check out my website at

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Push Yourself to Build Your Commercial Real Estate Business

In this market and economy, the real estate agents that are the most successful are the ones that push themselves to do the hard things every day. Progress and market share today are not random things; they only come from definite action to a real personal plan. There are good listings out there to lease and sell; it just comes down to how much work you put in as part of the prospecting and pitching process.

Here are my experiences on a plan of action to take in a tougher real estate market:

  1. Prospect by cold calling every day to new and established contacts for at least 3 hours
  2. Run a database program to capture your enquiries (a simple program is just fine)
  3. Get in front of 2 new people every day from your prospecting calls
  4. Make 40 to 50 prospecting calls per day
  5. Keep in contact with your prospects and clients on at least once every 90 days (or more frequent)
  6. Practice your dialogue for presenting and negotiating
  7. Get your business card and face in front of many people in an ongoing way

If you follow these things and tips, you will generate more leads for listing and conversion to deals. Work hard and the business will come.

You can get more commercial real estate tips for agents at

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Property Listings are an Absolute Must Have

In this property market, the number of new listings that you generate for your commercial real estate agency business will help you create better sale or leasing conversions and the resulting commissions. The established fact today is that not every property will sell easily in this market. Only the best properties with the best improvements and tenancy mix will create good enquiry. The enquiry that you generate from each and every listing and signboard should go into your database for future ongoing contact.

Recently I caught up with a number of salespeople in Sydney Australia at a workshop. There were some 30 or 40 salespeople in the room. During the early parts of the workshop, I started to talk about database and how the database should be used in commercial real estate agency. Only one salesperson in the room could prove to me that they had a significant personal database of substance and accuracy. Without a doubt, that salesperson was more successful than anyone else at the workshop. That salesperson was telling me quite clearly that they were living off the activities within their database. Every day they confirmed that they would make the calls and contact the people that they had spoken to before. They were also contacting new people on a daily basis to qualify them for entrance into the database.

The process of database creation and contact is so simple and yet rarely implemented correctly. Here are a few tips for those salespeople wanting to rise to the top of their market:

  • You will need at least 2 hours a day to make cold calls to new prospects within your market
  • You must follow up on all the prospects that you have spoken to previously on a 90 day or less frequency
  • The key objective of prospecting today is to get in front of enough people that have a serious property need at some time in the future
  • Personal contact remains the most powerful way of converting new business
  • Get at least 2 meetings a day from your call contact system
  • The best real estate salespeople market themselves each and every day

So many times I have heard a salesperson saying that they do not have a good database because the principal or manager of the office will not buy the software. The reality is that you do not need to spend many dollars at all in creating a new database. Excuses are counterproductive; action is the only thing that matters in commercial real estate. At the very basic end of database activity you can use the simple contact records in your diary software program. The key to the success of database usage is in the personal frequency and diligence of the process.

If you need any more tips for commercial real estate agents you can get them here at


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When Commercial Property Listings are Hard to Find

When the property market goes through a few shifts and changes it influences the property owners to hold off on any decisions of sale or lease until they know just what is going on. Some agents think the same way and do little to adjust their ideas and approach to the market. All of a sudden you get no stock on market and fewer sales or listings. Everyone then says that the market is ‘dead’. The reality is the reverse; when things are tough, the clients and prospects we represent need better agents that really do know how to respond in this time of challenge.

The reality of the situation is that listings are out there and some people still need help with property challenges. It all comes down to the mindset of the agent. There are also buyers and tenants for every property on the market; you just need to focus more on getting results and you will do that by talking to the right people.

If I was selling or leasing my property today I would not want an agent to list the property who thought the market was quiet! I would want the best agent that knew what the market was doing and how to tap into the shifting enquiry and the requirements of buyers or tenants today. Can you do that?

When things are changing, the marketing of the property for sale or lease becomes much more relevant. It is not just a matter of placing a few advertisements on the internet and in the paper. The marketing of commercial and retail property listings today is much more specific and driven. That is why exclusive listings are more important than ever before. Exclusive listings are locked into an agent so they can devote much more time to the process of direct marketing and target marketing.

So the moral of the story is this; there are listings in the market today that are screaming for a good property agent to take over and drive better results. Find them and work them.

If you want some more tips for commercial real estate agents you can get them here

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Keep Your Property Full With a Tenant Retention Plan

When you manage or lease commercial or retail investment property, the threat of vacancy is ever present. In this business environment tenants are under a high degree of pressure and are looking for savings and adjustments to help them with ongoing occupancy. Aggressive rentals and unrealistic landlords will pressure a tenant to move.

Regardless of how special the landlord thinks their property is in today’s market, the vacancy factor will have a major impact. Loss of rent also includes other costs like outgoings, lease incentives, documentation costs, and commissions for letting the premises.

This then says that any vacancy should be avoided if the tenant and their business are of benefit to the property. Landlords should be informed of the supply and demand factors that apply in their local area together with the levels of rental that a new lease requires to be attractive to the tenants of today.

When times are tough in the property market it is wise to establish a tenant retention plan to direct and focus the lease occupancy in the property towards stability. The parts of the retention plan are similar to the following (and you can add some more relative to your local property market and the requirements of the landlord).

  1. Lease expiry profile
  2. Lease rent review profile
  3. Benchmarks on market rental
  4. Incentive profiles that can be used in any new lease
  5. Competing properties that threaten your tenant mix and could attract your tenants to move
  6. Supply and demand for space to lease in the property market
  7. New property developments under consideration
  8. Anchor tenant details that impact the property tenant mix
  9. Tenants by grouping in the tenant mix (food, fashion, men’s wear, Shoes, Ladies fashion, sportswear, discount goods, etc.)
  10. Sale figures on a MAT basis to track the best retailers and the best products in the property
  11. Demographics of the shopper and the shopping patterns

These factors can be incorporated into your retention plan and help the negotiations that are made with your sitting tenants today. Your successful sitting tenants are of high value to the property income and overall value.

You can get more tips on commercial real estate for real estate agents at our website

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How to Ask the Right Commercial Real Estate Qualifying Questions

When you first meet property investors and know that they want some help from you as the local specialist real estate agent, you should ask good discovery questions to get to the source of their need or property pain quickly and professionally. The processes of selling, buying, renting, and property management all have unique questions that can make you stand out as a specialist that understands the property type.

The quality of those questions will help you with branding yourself as the expert that you want to be; the process will help you close on the listing or on the inspection with buyers or tenants as the case may be.

So many agents should listen to themselves and see just how ordinary their questions are. Specific information is what you need; you can add to the questions some observations regards the local property market.

Here are some great questions and ideas for real estate agents to use in their pitch or presentations:

  1. What properties have you seen in the local area recently?
  2. What other agents have you spoken to regards your property needs?
  3. There are many methods of sale to consider in this market, but only one or two are the best for your property. What do you know about methods of sale today?
  4. Here are some marketing alternatives that will work on most properties. I also believe that only one or two will really reach your target market effectively. What do you know about your target market?
  5. What do you like about the property and how it may work for you and your business?
  6. Rents to lease a property in this area can be handled in different ways. What do you know about rent structures in commercial leases that would best suit your needs?
  7. Expansion may be a real option that you should consider in the property purchase. How will your business be operating from the location and over the next few years?
  8. Signage on the property will be of great benefit. Have you considered talking to the local signage experts that understand the policies of the planning office on signage?
  9. How will the change in property impact your client base, and what are the right property improvements to help with the change?
  10. If your clients want something special from you in the new property location, what would it be?

The list can go on and be based around many different approaches of property, location, production, improvements, timing, and price. When you ask questions of the prospect, deliberately ask deeper questions and really listen to the answers; they will give you leverage to take the discussion further.

You can get more tips and ideas for commercial real estate agents at

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What Should You Look For in a Commercial Tenant?

When you lease commercial property for a landlord, the issue of finding tenants and more particularly the right tenants will frequently become a challenge. In this property market the number of tenants to choose from is less than a few years ago where the markets was more active, and on that basis the ones that are looking for new premises today are more selective. That says the real estate agent negotiating the lease on behalf of the tenant really has to be aware of the market, the leasing alternatives, and be an excellent negotiator. In only that way can you really bring relevance and focus to the negotiation for the landlord.

Resolve Vacancy Issues Early!

Today the best way for landlords to resolve vacancy problems is to find the best leasing agent in the local area that really does have their finger on the pulse of tenant activity and churn. By churn we mean the tenants that are:

  • Looking to expand premises
  • Looking to contract premises
  • Those that need to relocate to better premises
  • Those that are getting close to a decision to renew their lease
  • Those that do not know what the leasing rates are in the local market and want some help
  • Those that need an incentive to make the premises more suitable for ongoing occupation

Not every agent really does cover these areas very well; they may think that they do, but the reality is that they could do better. This allows the agent that really wants to rise to the top of the leasing market to dominate the tenancy activity, the opportunity to do so.

So exactly what should you look for in a tenant for a landlord? What are the main factors of the final selection of the tenant that will tip the decision? Here are a few to help:

  1. The tenant that can show business success and stability
  2. A tenant that has a good rental history and record from previous lease occupation.
  3. A tenant that brings a good business profile to the property
  4. A tenant that comprehensively benefits and integrates into the existing tenant mix
  5. A lease that complements the investment profile and plans of the landlord for the coming lease term
  6. A permitted use in the lease that suits the property
  7. A lease that improves the rental return from the property in balance with market rental expectations

You can use these as a checklist to get your tenant selection process underway. There may be others to add to the list subject to the property type and property location.

Need more help as a commercial real estate agent? Want some more ideas in commercial leasing? You can get just that at our main website

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How to Generate Leasing Leads Today in Commercial Property

When it comes to property performance today, landlords want stability of their tenant mix and tenant profile. Anchor tenants and major occupiers of space in the building need to be nurtured.

Even in the best of properties you will come across a vacancy issue. On that basis the property or leasing manager should maintain a strategy to optimise and grow leasing leads. When the vacancy then happens, the available space can then be marketed to the tenants that are already qualified and on your list.

The database for the leasing agent then becomes critical to the leasing service provided to the landlords and quality properties in the local area.

The local leasing agent should know their area, the lease incentives, the factors of supply and demand, and the trends of the leasing market. They should know what works and what does not when it comes to a new lease of premises in today’s market. Without this information the landlords will not fully understand the benefit of the lease offer to be put to them; that then just makes the final lease negotiation all that much harder.

To generate leasing leads in this market here are a few tips for commercial property agents.

  1. Keep in contact with business leaders in all major businesses.
  2. Monitor the demographic changes to the community at large.
  3. Review the tenancy schedules in all large leased properties for expiry opportunities.
  4. Tap into the lease deals that are being done by all agents so you know the real rents and not just the advertised rents.
  5. Talk to landlords on a regular basis in case they can use a tenant retention plan or tenant mix strategy.

You can get more ideas to lease commercial premises at our website