All too often today we see commercial salespeople strive hard against the competition agents to win a listing and more importantly an exclusive listing, only to then loose the listing later due to the agents average performance and service of the client during the promotional campaign. They ‘drop the ball’. I am sure you have seen it.
If you win a property listing today, you have to work the listing opportunity to the fullest; no excuses. Take the new property to the market with system, target marketing and directed effort. That is why the client selected you in the first place; they believed your pitch, and your skill. They expect constant feedback and real effort as you help them.
Minor celebrations may be in order when you win a listing, but that is where the real effort starts. Highly professional agents know that and will service the clients and market the property to the highest level. Don’t let your exclusive listings mix with your open listings. Exclusive listings should receive 500% more effort than open listings.
In this property market it can take reasonable time to sell or lease anything. In fact nothing will sell or lease easily if the effort is not applied; luck in marketing campaigns just does not happen today. Exclusive listings are dedicated and controlled opportunities for you to convert as a sale or lease. The client has committed to you for a good period of time and expects you to ‘pull off’ the deal. When you service the exclusive listings and use all your skill to market, inspect, and negotiate for the client, results happen
So why did I write this? I see the problem so often, and it is just not good enough. Survival and success in this market as a commercial real estate agent will occur when and only when you do a great job for your clients; that’s the rule.
If you want some more ideas to help your progress in commercial real estate agency, visit our website at http://www.commercial-realestate-training.com/
Every so often, and in any year you will find that things get a bit tough or slow in commercial real estate. That usually sends most salespeople into a negative slide and all of a sudden they are considering a new career on a base salary.
You know the drift:
- Buyers are seemingly not around
- You can’t get new listings
- The boss is on your back
- Listings are not moving
- Sellers are selecting other agents to help them
- Tenants are not making enquiries
- Finance is not available, and the list goes on
The reality is that this happens often, but to a lesser extent to those salespeople and real estate agents that really build a good database and work it each and every day. The good thing is that right now is the beginning of the calendar year; we have 11 months of opportunity ahead of us and not a day should be wasted.
The salespeople that drive their own market by daily prospecting and cold calling will make it through in any downturn of the industry; no matter what happens. There are always ways to find new business and make things happen; you just need to know more people and cover the market comprehensively.
If things are tougher for you at the moment then examine what you are doing and what you are thinking. The old saying that ‘The answer lies within’ is very true. Examine yourself and your actions; you will usually find the problem and see the solution. You have the keys to make this a great year. Start taking action to a plan and keep it moving ahead.
As I write this, I am sitting in an airport and about to travel to help some commercial agents in Townsville (Australia) with their sales and leasing processes. It’s a 2 hour flight and I know that I will have plenty of time to think; not enough thinking and planning is done these days. I take every opportunity I can to plan what I do and how I do it. When was the last time that you did that? It’s a good question.
So my message to you is this; now is a good time to start the year and make things personally better for you. Yes, this year can be great in commercial real estate and things can change significantly from what you did last year. It is in markets like this that property owners and business leaders need good and experienced real estate agents to help them solve problems. Offer a good ‘solution service’ and the market will find you.
If you like to get more ideas and tips on commercial real estate agency, leasing and sales, keep in touch with me here or at my main website at http://www.commercial-realestate-training.com/ I like to have friends in the industry all over the globe. Send me an email and tell me what is happening in your country or market.
When you work in commercial real estate agency, you have to find listings. The listings for lease or sale come from one source and that is the property ownership.
In that case we have to contact and network the right people so we can convert new business. In most cases they are:
- Property investors
- Owner occupiers
- Business owners
Each of these will have a relationship to property that you can tap into.
So often I get questioned on if there is an ‘easier way’ to find property owners and property investors; the answer is simply that there is no ‘easy way’, and if there was it would have been found years ago.
The reality is that commercial real estate agents networking and contacting the right people takes time and a lot of systemised effort. There is only one way to proceed here and that is by using a good database that you can carry with you and update all records and any progress that you make. When you make the database your personal business focus, you will find more opportunity as you will be driving more enquiry your way. The rewards are many.
As we all know, many commercial and retail property owners will own the property via a property trust or company structure. Identifying just who is the right person to contact is where all the effort and hard work ‘kicks in’ for you. Some of the searching process involves title searches, company searches, referrals, talking to neighbours, and researching the council records. When you get used to the prospecting process you will know what works for you and how to go about things as effectively as possible. I am a great fan of ‘talking to business people’ as they will give you so many leads when you ask the right questions; they know the street and the adjacent businesses better that you do, and this knowledge can be tapped for opportunity.
The important message in seeking and finding property owners is that you must have a system that keeps you on track. Most agents are very random when it comes to this; if you can keep moving onwards and driving yourself in this prospecting process you will have better success than your competitors. When you work hard the industry rewards you in good listings and commissions.
You can get more tips from our website at http://www.commercial-realestate-training.com/
In this commercial property market, vendor paid advertising is absolutely essential. If the vendor will not commit to a vendor paid marketing campaign, then they are not truly interested in the sale or the lease (as the case may be). There are far too many properties on the market at the moment for any property marketing campaign to be generalised or cheapened. Any agent that offers to pay for the marketing of a commercial property is really buying the listing and is unlikely to fully commit to the intense marketing that the property deserves.
How Do You Sell Marketing Campaigns?
The best way to convince the property owner to move towards vendor paid advertising is to give them some alternatives such as three levels of marketing and promotion. A simple strategy of the marketing being split into gold silver and bronze packages will give the seller that choice.
To market a property today the promotional campaign needs to be quite comprehensive and directed at the right target market. Most marketing campaigns should be split into the following categories:
- A signboard on the property is absolutely essential to support the local area enquiry.
- Standard direct letters and flyers into the adjacent and nearby business community.
- Phone calls to the qualified people within your database
- Advertising in the newspaper media on the days that are devoted to commercial and retail real estate
- Internet Marketing on your website together with the generic industry based websites
- E-mail marketing including electronic newsletters with suitable download links and pdf files
- Direct mail to the Property Investors and business leaders that you have dealt with before
All of these strategies take time to develop and initiate. They can only occur on an exclusive listing basis. Any property owner that chooses to open list their property will be doing themselves an injustice given that most agents in an open list scenario do not service the listing effectively or intensely.
Be prepared to ask for the exclusive agency and support it with a strategy of vendor paid target marketing. In that way the property owner will achieve the market penetration that they require.
Even though this property market is challenging and somewhat difficult, the property enquiry is still available with most listings. You simply need to market the property effectively and make the necessary personal contact.
You can get more tips for commercial real estate agents at our website http://www.commercial-realestate-training.com/
Today the commercial property market has become a buyers’ market in most locations. The property buyers can call the tune when it comes to the price and the final deal; yes the sellers do not have to sell their property at a lower offer, but the reality of the situation is that there are limited buyers and offers available for the given property listing. Any offer that comes forward may be the only offer. Sellers should face the facts when it comes to selling property today, and the agents need to help put the deal together in these slower market conditions; that’s what they appointed us for anyway!
So as real estate agents we need to specialise our skills in listing, negotiating, and closing. We have to work with less to create more. The skills of the individual are now more important than ever before; but that is what happens in a slower property market anyway, don’t you agree?
Every phase of the commercial property sales process is now centred on the success of the negotiation in various stages:
- Prospecting is a negotiation to get a meeting
- Negotiating the listing appointment is a sales pitch
- Getting a vendor paid marketing package is essential
- Inspecting the property with sellers to price the property
- Inspecting the property with buyers to get an offer for the property
- Closing the deal between the parties that are poles apart in price or terms
This year will be something like last year when it comes to winning business and closing the deals. You will have to work hard and with focus. The listings and enquiries can be found but you have to dig to get to them. Luck in the process may come your way, but it is the hard effort that everyone in sales should commit to.
If you want more sales enquiries then you will have to create the churn to produce them. That means talking to more people. Everyone knows someone and business people know lots of other business leaders. Ask the right questions and the relationships will open up to opportunity.
Get some more good tips for commercial real estate agents at our website http://www.commercial-realestate-training.com/
This is going to be another busy and challenging year in commercial real estate sales and leasing. How you focus and act as a real estate agent will be the key to getting results.
I lot of agents and salespeople start the year saying that they will improve many things this year and yet do nothing different. In a few weeks from now they are back to their old patterns of action and reaction.
The key fact that needs real understanding here is that nothing changes unless we change our efforts and systems. Better daily systems are the keys to obtaining a new set of habits in commercial real estate agency. Here are some systems that I think most people can improve on:
- Prospecting has to be the most avoided skill in the industry. Make a decision to prospect more effectively each and every day from now on. Speak to more people and keep the process going.
- The listing presentation and pitch that you make is now more important than ever before. Most listings are competitively pitched for by a number of agents. Your pitch and sales presentation process has to be better than the competitors. This will take effort and practice.
- Your database is the key to more opportunity. Grow your database off the back of effective prospecting. Talk to more tenants, landlords, property investors, and business leaders. You will find the opportunity waiting to be tapped.
- Get more signboards on your listed properties. Perception is everything in local area marketing of commercial property. Put your name on all signboards. Be seen and known as the local agent of skill.
- Practice your negotiation skills so they are developed and advanced. You will need these skills to handle difficult listings, contracts, and leasing.
There are other things that you can do, but let’s keep things simple. These are the ‘big rocks’ to handle when it comes to improving your commercial real estate business.
If you need some more ideas to help your commercial real estate career or agency business, visit our website at http://www.commercial-realestate-training.com/
The year has already begun and commercial real estate agents are coming back to work. Property investors and business owners are back at their offices thinking about how to fix their property challenges for the year. So what does the year offer?
This year will probably be something like last year and that means that the efforts that you apply now to your prospecting and listing are critical to the results that you want for the rest of the year. There are always people around that need help with property matters. It simply comes down to the efforts that you apply to the prospecting and connecting process.
Commercial real estate is centred on the business community. When you are in touch with the business needs of the tenants and companies in your location or precinct, it is highly likely that opportunities will always be presenting themselves. It is a matter of what you see and how you act. The agent with the best database will likely be the agent with the best commissions and deals.
Today the greatest opportunities are obtained from continual contact with the following groups of people:
- The owners of property throughout your region. It is best to contact them through individual property research and direct contact. In some circumstances it may take two or three approaches before they will meet with you. Persistence is the key as it will take time to reach some of these people.
- All businesses in your location remain an opportunity for property sale, purchase or tenancy relocation. It all comes down to the churn created by successful businesses and those that need to relocate to adjust their occupancy costs. Fortunately business leaders like to talk to property people simply to understand what the market is doing and what they can do to build on what they have. An ongoing contact process can be very fruitful.
- Solicitors and accountants always have clients that are seeking some form of assistance with their property needs. Establishing contact and trust with the local solicitors and accountants will have long-term benefits. It is likely that they will establish long-term relationships with you providing they believe you have the knowledge and the expertise to resolve complex property matters. They have to protect their client and solve their client’s property problem.
For those of us that have been in the commercial real estate business for many years, we know a property market like this can be very rewarding providing you put in the effort and systemise everything you do. Every part of your business process should be refined and practiced so that you are the best person in the market at what you do, sell, lease, and manage. Fortunately many of your competitors will be rather ordinary and not undertake the necessary self-improvement processes. Choose to be the best and then take action.
So you have come back from your holiday or break, and now is the time to assess the actions you are taking and the focus that you require. The new business is out there so start the listing and prospecting process. Talk to more people; that will always be the secret to building your commercial real estate business. Build your database from personal effort not luck. This can be a great year for you.
You can get more ideas for commercial property agents at our website http://www.commercial-realestate-training.com/
In this commercial property market, the method of sale that you choose as the real estate agent in selling a property is critical to the outcome. Every time you do a listing for sale, carefully consider just how you should take the property to the market. Make the right choice based on facts and not your preferences. Wasting time and experiments in selling are not good options in this property market.
You do have a few choices such as:
- Sale at a price
- Sale with no price
- Sale by negotiation
- Sale by exchange
- By Tender
- By Expressions of Interest
- By Auction
The right method of sale is the one that matches the property type in the current location, given the way in which the buyers like to buy. If the buyers do not like the method of sale, it will stifle enquiry and they simply will sit back and see what happens.
Let’s take the auction method of sale for the property as an example. Not everyone likes to act in an auction and unless you think you will have plenty of enquiries for the property when you go to auction, it can be a difficult process of sale; invariably the property may go to auction and be passed in. All your hard work in marketing and inspecting the property can be lost effort.
Far too many agents choose the method of sale that suits them with little regard for the facts of the market and buyer trends.
When you get the method of sale correctly chosen and established, an enquiry should start and inspections should occur. Remember that the first 3 or 4 weeks in any marketing campaign are really important; if you waste that time with a poorly chosen method of sale, everything you do will be lost. In this property market that is not a good idea.
Make the right sale choices in this market, and give the client the right reasons to proceed with your recommendations. Everyone wants a good result. Know what the buyers want today and tap into it.
When you as a real estate agent list commercial or retail property, it is important to capture all the critical factors that have an impact on the existence and function of the property. Given that each and every property by very nature can be complex, you have a few challenges to go through to ask the right questions and explore. When a property is listed well, it makes the property easier to market and sell or lease (as the case may be).
So what can you do to make the listing process easier and more accurate? The simple answer is to make a checklist for each property type.
Each time you use the checklist you can make improvements to it and add critical factors relative to a property type. The listing process for each property thereby gets simpler, and you as the agent show a high degree or thoroughness in processing the listing and asking the right questions.
As you would expect, the property types of office, industrial, and retail, will all be different. The improvements and functions of each property are unique and should be handled appropriately to identify the elements that a buyer or tenant to the property would find important. To help here, every property can be broken down into a number of central topics. Here are some of the main ones:
- Improvements in the property –these will be associated with the occupancy, design, and usage of the property. The improvements will have attraction to a particular target market and it is your job to identify the market. In reviewing the improvements of the property it will also be necessary to look at matters relating to structure, access, and property usage. Importantly the property has to be compliant with the required building codes and safety codes. Ask the property owner to give you details regards any outstanding occupancy notices or orders that have not yet been satisfied.
- Legal details associated with ownership and title –these are the items that impact the property ownership on the title, and the structure of the ownership identity. In this case you should always search the title for a property before completing the listing. It is also necessary to check out any encumbrances or easements that may have an impact on the property function or the boundaries; get details and copies of the relative documentation as any buyer or tenant to the property will require information before making a purchase or tenancy decision. The local municipal council should also be consulted regards orders and notices that may apply to the property itself.
- Zoning and property usage –the local council will apply property or zoning limitations and usage factors. This will be part of the normal planning regulations for the property precinct. Get a copy of the local development plan and the regulations that apply to the particular property listed.
- Matters of the environment and heritage –today we find an ever increasing awareness of heritage and environmental matters. They create limitation and restrictions on the function of commercial property. As part of the listing process, every property should be checked out for any environmental or heritage orders and notices.
- Energy consumption –the energy supplied to and consumed by the occupants of a building will form part of the occupancy costs and have an impact on the net income. Importantly each and every property should comply with economical energy consumption rules and regulations in the local area and precinct. A building with high energy consumption and energy inefficiencies will have limited interest to tenants and buyers.
- Financial aspects –in every property there are financial aspects to be reviewed and considered. Most particularly they are the matters of income generation, expenditure and outgoings costs, and the net income. As part of the listing process, take time to review these numbers and check the accuracy. Any discrepancies should be identified and qualified prior to any Property Marketing campaigns.
Given the above matters, every commercial or retail property listing is a complex process and issue. Capturing the complete detail at the time of listing will assist the marketing and inspection process for the real estate agent. In simple terms this makes the property negotiation much easier and avoids any unknown questions or problems the buyer or tenant could raise in the negotiation stages of the property transaction.
If you need help with issues of commercial property listing then you can get free tips and ideas at our main website http://www.commercial-realestate-training.com/
Every investment property should be carefully managed when it comes to the leases and the tenancy mix. Part of that process will be the controlling of rent reviews and options in all the leases. Rent reviews are critical to the cash flow in the property. They can be of different types and called many things such as:
- Market reviews
- Geared to consumer price index
- Fixed percentage reviews
- Fixed amount increase
- Stepped increases
Whatever the process of review used in any lease, the important issues to watch for are the dates of the review and the correct services of notices. All of these will be detailed in the lease.
This then says that property managers and investors controlling commercial property should be very familiar with reading leases and enforcing the terms of the rent review clauses. Some lease dates are critical dates and should be observed and actioned correctly to be enforceable.
It is not unusual for a property manager to get involved with or take over a new property management portfolio where the rent reviews have been overlooked or not correctly served. For that reason every new property taken into a management portfolio should go through an audit of the leases and a thorough checking of the lease terms and conditions. All critical dates in the leases should be checked against the rent charges and outgoings charges raised in the end of month tenants invoices.
A well managed property is one that has been optimised in lease and physical performance. Commercial and Retail Property Management is not an experiment for inexperienced people; Agents and Property Owners should carefully control the managed asset. Mistakes can be costly. Only use the best people to help you with the property management.
You can get more tips on Commercial and Retail Property Management at our website http://www.commercial-realestate-training.com/
When you work in commercial real estate, the sale or leasing of a property will involve you inspecting the premises of the properties that you list and market. The way in which you inspect the premises will impact the outcomes that you get.
You inspect premises for two main reasons; firstly with the property owner to understand what the property is all about, and then at some later stage you will inspect the premises with qualified prospects that may want to look at the premises for potential purchase or rent. The inspection of a commercial property is a real skill that can be refined and improved.
Every property is different and on that basis will present you with challenges to inspect and sell to the parties that inspect. It stands to reason that if you can improve your inspection and presentation skills, you can improve your listing conversions to sales contracts and leases. This one single fact and skill is overlooked by so many agents.
The inspection of a commercial or retail property is not an experiment; it is a time to position the deal or negotiation, and pitch for results. You can improve your inspection skills by practice and most particularly in the following ways:
- Make a list of the property features that must be shown in the inspection. Create a plan to use in walking around the property that will allow the features to be best displayed and explained to your prospects.
- Look for the hurdles and problems of the property at the time of listing so you have answers for the prospective buyers or tenants that you take through the premises.
- Get a plan of the premises to give to the parties that inspect the premises. This helps with orientation and helps the prospective buyer or tenant grasp the concept of value and size.
- Provide a location plan of the general streets and property in the local area. Your prospect person inspecting the premises may not know about the location of transport, roads and highways, access, services and amenities. If you are showing them a number of properties, this will be even more important to the inspection process.
- Take a number of photos of the property at the time of listing that can be printed and given to the prospects as you take them around the property as part of a handout or information brochure.
- Location demographics will help the prospect understand the growth and general success of the business community. The local council will have details that can be sourced for that purpose.
- Get a list of other large and successful businesses in the area that may support your inspection with tenants and buyers. Ideally you should be able to show the prospect that other successful businesses have made the general area their home for many years.
- A site plan may be relevant for buyers that are considering a property purchase. You can get the plan from the property title, but you should also ask the property owner about the boundary locations and whether or not there may be encroachments on the boundaries. If in any doubt get the property owner to seek a survey plan of the property.
- Property improvements will be relevant to buyers and tenants in differing ways depending on their business function and requirements. Special zones, improvements, and the capability of each property you inspect should be captured and defined, such as car parking, common areas, entrance foyers, toilets, tea rooms, signage, and floor space.
The simple process of property inspection can be a successful enhancement that will help your sale and lease process. Practice makes perfect they say. If the prospective tenant or property buyer can feel confident of all the facts and figures in the property inspection, it makes your presentation and sales pitch all that easier.
If you want some more tips for commercial real estate agents and salespeople, you can get them at our main website at http://www.commercial-realestate-training.com/
One aspect of commercial real estate marketing that is commonly overlooked or not fully implemented is that of the internet. Most real estate agents use the internet in its basic form for listings and that usually means:
- Advertising property for sale
- Advertising property for lease
- Linking email newsletters to internet listings on the websites
- Multiple listings of properties on a few websites including the industry based properties for sale or lease
So all of this (believe it or not) is quite ordinary and there are some other things that can be done when it comes to the internet profile within the commercial property industry. I am not saying that the above items are wrong; I am just saying that you can do much more, and from a new business perspective as a commercial real estate agent, that is a great idea. The internet is just so important to the future of real estate enquiry for you. When the property market slows or gets tougher, you need the best market exposure you can get. Ignore the internet at your peril.
Before I go into what you can do here, it is worthwhile defining why we should spend more time in getting the internet profile of your business and yourself up to new levels. The search engines are always on the lookout for new listings and things that are relevant to those people searching on the internet; they use ‘spiders’ to crawl the internet continually to capture new information and data. When the search engines can capture more of the high quality content for their customers that are ‘searching’, their business gets better. It therefore stands to reason that if you can improve your relevance to the customers using search engines then the search engines will rank you higher. That will help your ranking position in the local property market in comparison to other ordinary agents not taking these steps.
This process can be implemented both at an agency or individual basis; it all depends on if you are an office principal or an individual salesperson and where you want the results to happen.
So let’s get to the point of what you can do here in addition to the standard 4 items of internet activity above. In no particular order you can do the following:
- Decide what specialities apply for you and your business; these are the things that make you relevant as a commercial real estate person. They may be location and also property type related. This means you could be the specialist for your local area such as ‘New York Retail Leasing Specialist’. As another example you could be the ‘London Industrial Leasing Specialist’. When you have done this, move to the next item.
- Write informational content and articles within your speciality and add that content to your website on a regular basis. About 400 to 500 words will be the right size of article. Add that content to your website as fresh new pages at a regular frequency. If you can do this daily or weekly then you will be making progress (daily is the preferable option). The content should be informational around your property speciality. Search engines will see this content go up on the internet and start to watch your site more frequently; all the more reason to do the article loads frequently. Make sure that these articles are content rich and informational; remember that the search engines like high quality content.
- If you are an individual salesperson working for a real estate office, then you will have little control over the office website. On that basis start your own ‘blog’ using the same concept in 2 above however the ‘blog’ is yours and is located in one of the ‘blog’ engines. The same principals of content apply, however you are featuring yourself as the specialist and including details of how to contact you (email and website). Content is ‘king’ when it comes to building your profile as a commercial property specialist on the internet.
- In addition to the items above, write some articles on a regular basis (daily or weekly) for the article search engines such as www.ezinearticles.com or www.goarticles.com or www.articlesbase.com These articles must be information and not promotional. The articles should show that you are the expert. Each of these article sites will have its rules in this regard, so you can check out the rules in each case. Include on each of your articles you write in the ‘bio’, details of who you are and how to contact you. The search engines will see the links as well, and this also has benefit to your home page on your website.
These are some of the best things you can do to improve your internet exposure and lift your rankings potential. Yes I know that some of this takes time and effort, but the benefits are huge. The golden rule to internet marketing in commercial real estate is to keep up the content momentum on a regular basis. Within a short period of time (with regular content creation), the search engines will notice you and rank you better for the speciality that you choose. Consistency and quality are the rules here. In this way you can rank higher than the other local property agents when enquiries are made at the search engines.
You can get some more tips for commercial real estate agents at our website http://www.commercial-realestate-training.com/