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 http://www.commercial-realestate-training.com/
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).
- Lease expiry profile
- Lease rent review profile
- Benchmarks on market rental
- Incentive profiles that can be used in any new lease
- Competing properties that threaten your tenant mix and could attract your tenants to move
- Supply and demand for space to lease in the property market
- New property developments under consideration
- Anchor tenant details that impact the property tenant mix
- Tenants by grouping in the tenant mix (food, fashion, men’s wear, Shoes, Ladies fashion, sportswear, discount goods, etc.)
- Sale figures on a MAT basis to track the best retailers and the best products in the property
- 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 http://www.commercial-realestate-training.com/
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:
- What properties have you seen in the local area recently?
- What other agents have you spoken to regards your property needs?
- 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?
- 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?
- What do you like about the property and how it may work for you and your business?
- 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?
- 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?
- 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?
- How will the change in property impact your client base, and what are the right property improvements to help with the change?
- 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 http://www.commercial-realestate-training.com/
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:
- The tenant that can show business success and stability
- A tenant that has a good rental history and record from previous lease occupation.
- A tenant that brings a good business profile to the property
- A tenant that comprehensively benefits and integrates into the existing tenant mix
- A lease that complements the investment profile and plans of the landlord for the coming lease term
- A permitted use in the lease that suits the property
- 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 http://www.commercial-realestate-training.com/
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.
- Keep in contact with business leaders in all major businesses.
- Monitor the demographic changes to the community at large.
- Review the tenancy schedules in all large leased properties for expiry opportunities.
- Tap into the lease deals that are being done by all agents so you know the real rents and not just the advertised rents.
- 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 http://www.commercial-realestate-training.com/
When the property market gets slower or the buyers are fewer, the marketing of any commercial property that is for sale becomes more important than ever before. The whole concept of property marketing is to attract enquiry; the greater levels of enquiry you can generate as an agent, the bigger and better your database. That has a direct impact on the number of deals that you can close.
Why is it that so many agents and salespeople just take the easy way out when it comes to property marketing? In case you are wondering, this is the easy way:
- Advertise on the internet
- Place adverts in the local paper
- Put up a sign on the property
- Wait for enquiry to come in
In this tougher commercial property market, this is only half of the property marketing equation. Any property owner can do these things themselves so why would they want a commercial property agent to list the property for them? The simple answer is that they do not have access to the property enquiry; so if you have a good property database that is well maintained, you will be of greater attraction to the property owners in your local area. Listings will be easier to convert on your terms and conditions.
The best and most successful agents and salespeople will do far more in the marketing of a listing, build a quality database for themselves and keep it accurate. In saying that I should now put a proviso on this comment of ‘listing’; it is a fact that ‘exclusive listings’ are the best way to go at any time and in any market, and are the only listing type that is or should be fully benefiting of your time as a salesperson. Wasting your precious time on the marketing of ‘open listings’, is not a wise process. In the case of open listings you have no control, and the property owner is very likely to be less than open and fully honest with you in negotiations. In such case you are just another agent wanting a commission.
OK, so a lot of you will be saying that open listings do sell, and you would be correct; just do not waste all your time on them. Create exclusive listing stock that is yours to control and market in the form of an exclusive listing. In such case you will have a fully committed property owner that is more likely to listen to your recommendations and strategies to reach a sale. You can and should control your market.
So, back to the marketing comments! Given the basic levels of marketing above, the higher levels of marketing are a lot more work but they bring greater benefits. The next levels of marketing and that which should be applied to all your exclusive listings will be:
- Direct letters and follow-up calls to all property owners in the surrounding precinct
- Direct telephone calls to the business owners in the local area
- Direct telephone calls and emails to all the property investors in your database
- Research and contact all the clients that you have served in the past
- Cross contact across all your other listing enquiry
It is surprising just how reluctant some salespeople are in moving to this next level. What stops them? The excuses are many.
You can get more ideas for commercial real estate agents and salespeople at our website, http://www.commercial-realestate-training.com/
When it comes to agents selling and leasing commercial and retail property it is imperative that you take control of your market. This can become a problem if you are one of many agents servicing the same local area. Too many local agents will dilute the enquiry you can get, and some enquiry will spread across many agents.
On this basis you really only have a small number of alternatives:
- Get your signs on as many of your local listings as possible. Signage will give the perception of market dominance.
- Ask the person making the property enquiry if they have spoken to other agents and or if they have seen other local property already.
- The business community is the foundation of tenant and property activity. Make sure that you are speaking to local businesses each and every day.
- Direct marketing on a daily basis is essential so you can meet more people and that will help underpin your levels of enquiry.
Today you find that some agents will fight over the same enquiry or the same listing. That does not have to be the norm; get more involved with your property market and meet with more people. Quite soon you will be generating your own enquiry and your own deals without the threat of other agents competing.
If you want more ideas and coaching material for commercial real estate agents simply visit our website on http://www.commercial-realestate-training.com/