Industry Trends in Commercial Property Agency Sales and Leasing

Real Estate Agents today know that things have changed and that the market now requires a high degree of action on the part of the  salesperson to get most properties over the line when it comes to getting a  closed deal.

Those agents that have been in the market for many years also know that the things and situations that we have today will always come around in cycles in the industry.  Sure the property market is a bit tough at the moment but hard work and diligence will get the sales and leasing deals across the line.

The industry trends in most property markets go something like this:

  1. Enquiries for properties to buy are less due to the restriction on availability of funds.
  2. Properties are being conservatively valued by the banks and lending institutions given the slower business sentiment in the economy
  3. Tenants are slower to make a decision to move to other properties or to negotiate a new lease
  4. The time on market for most properties is longer when the owners are seeking to achieve a sale or a lease
  5. The competition between listed properties for buyers and tenants will be high given that there is an abundance of space and properties available at the moment.

So what does all this mean?  It’s just another phase in property ownership and the salesperson or agent needs to work that bit harder.

The most relevant tool to use in property sales and leasing in this market is the database.  An agent with a solid and accurate database in this market will convert more property enquiries and convert them to deals.

It is an interesting fact that when sales are down, the leasing market gets more active.  This is because many tenants are out looking for the best rent deals they can get.

The agent or salesperson that adapts to this shift in property activity will still take reasonable enquiry and convert more leases.  The size of your commission then just depends on the size of the lease and the rent of the premises.  It’s a good idea to focus on quality properties to lease and sizeable tenancies.

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By John Highman

John Highman is an International Commercial Real Estate Author, Conference Speaker, and Broadcaster living in Australia, who shares property investment ideas and information to online audiences Worldwide.