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How Commercial Real Estate Agents Can Market Property Today

When it comes to the marketing of commercial property today, there is a need to attract the right type of enquiry from the local area. This is where the expertise of the commercial real estate agent becomes fundamentally important to the overall marketing strategy.

The commercial salesperson or agent should have a significant database covering people in the local area who have been well qualified regards their interests in commercial property. So the process of marketing needs to capture the correct people for the relative listing. This is where many agents come unstuck. Where it may have been acceptable to list a property on the Internet and then wait for the enquiry to come in, today we must focus on the targeted market or direct marketing approach.

To attract the right enquiry the direct marketing approach can be a variation of the following:

  • Produce flyers of the exclusive listings that you have on your books then take those flyers to other businesses in the local area. This process will allow you to gather local market intelligence through talking to people.
  • Always get a signboard on each of the properties that you have listed. The number of signboards that you have on local property will help the perception of market domination.
  • Every marketing campaign on each exclusive listing will give you the chance to put more people into your database.
  • Use the internet comprehensively so the listed properties go onto a number of sites that are well recognised for qualit property in your area.
  • Circulate facts about each property listing via email to your selected qualified people in your database.
  • The local newspaper will have some benefit for spreading the word about any property listed but there will be shorter retention time on the value of the newspaper advertising. The internet ranks far higher when it comes to the long life equation of marketing value.

The marketing of commercial and retail property today is more specialised and requires more effort. This is where an experienced salesperson with the right database is far more relevant for the property owner than a ‘newbie’. In a market like this it is easy for an experienced salesperson to win a listing based on the value that they bring the client; gone are the days where you have to discount your commissions. Sell your services from a position of value and relevance to the property challenges that the client has.

If you want more tips for commercial real estate agents you can get them right here at our website http://www.commercial-realestate-training.com/

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Commercial Property Markets Need Tough Salespeople

Make no mistake, this commercial or retail property market is quite tough; that being said things still do sell and lease.  It takes a tough salesperson with great focus and action to make it in today’s property market.

Some of the best people that I have seen today, still do the basics.  That is the secret to their success.  The basics drive their business ahead.  Here are some ideas to help you:

  1. Make prospecting the number one action that you take every day
  2. Build a database yourself of  contacts that you know have a commercial or retail real estate need
  3. They market their listings specifically to the target audiences that they know are active
  4. They look for new opportunity each day and then chase it  to see what conversions can occur.
  5. They meet new people as part of spreading their personal brand

So effort is required to make these things happen.  There is a lot of difference between being great and being ordinary in this property market.  In every team of 10 salespeople, there is likely to be only one that stands head and shoulders above the others with better listings and commissions.

Is it easy to do this stuff?  I guess the answer has to be no, but the rewards are many for those that can take action and build their business today.

That’s my ideas about this property market today, and I hope it helps you given the challenges that you have.  If you want more tips for commercial real estate agents and salespeople, simply visit my website at http://www.commercial-realestate-training.com/

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Commercial Real Estate Agents – Setting Income Goals

When you work in commercial real estate sales and leasing, you can quickly get bogged down in exactly what you have to do every day.  For most people that is:

  • Answering emails
  • Keeping your clients informed of the results of marketing
  • Finding new business to fill your pipeline
  • Writing adverts for your listings
  • Taking inspections for selling or leasing property
  • Writing up new listings, etc

What you ‘have to do’ and what you ‘should do’ are two different things.  Regrettably too many salespeople get tied down with all the wrong stuff.  Pretty soon they are struggling with not much new business, poor conversions on listings, frustrated clients looking for a deal, and most importantly a slower feed of commissions and listings.

There is no point in waiting for new business to find you because that will not happen very often.

In the tougher property markets like that which we have now, you just have to do the right thing with your time; if you are not doing that, you are self destructing and your career is going nowhere.

Understand this; without quality listings, your market share and commissions office really stalls.  At least 3 hours a day should be spent on building your listings and prospects with new stock, and not letting the current listings and clients take over your day totally.  No matter how ‘busy’ you are, there is just no excuse for not prospecting and connecting with clients every day.

Here is an ‘Action’ item for you:

Look at the income that you generated last year.  Look at how you are tracking this year by comparison, and then add 25%.  This is what we call a stretch goal.  Next, you need to decide just how you will change your processes to attract that level of new business.   Typically the changes will target:

  • Better listings
  • More listings
  • New prospects and clients that you can help
  • Using your database more effectively

Today we all know that fewer clients can act in buying and selling commercial property given that finance is so tough to source and borrow.  On that basis you have to know more people.  Your database should be the lifeblood of your future sales and commissions.  Just how up to date is your database and when was the last time that you called down all the people in it?

To get to these goals it is necessary to change a few things in what you do every day.  When you decide to take 2 or 3 hours from your diary to do some new things like prospecting, and calling in to businesses in your area, then each and every day will change in a positive way.  In any property market, you can grow your listings and commissions; the key to the process lies within.

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Business Card Design for Commercial Property Agents

I like to think that the traditional business card is perhaps the most effective and cost efficient method of marketing ourselves today.  Many commercial sales and leasing agents would not give out more than 10 business cards a week (if that).  If that is the case, I like to challenge them to give out 10 business cards a day!

Always carry your business card with you.  Give it out at every opportunity to all the new people that you meet.  A business card is cheap but very professional if you handle the process well.

Here are some rules to the business card process and design:

  • Get a solid textured card.  A business card on thin paper stock sends all the wrong messages.  ‘Cheap and nasty’ are the first impressions of a flimsy business card.
  • Your card should be on the ‘larger’ size of average.  Small business cards are used by Doctors and Dentists.  You are a professional salesperson so make sure the business card you use is impressive.
  • Quality is the impression that your card must give.  You can get some shine finishes on cards that make the card look great.
  • Choose your colours well so that the card stands out from others.
  • Use an image or logo to personalise the card.
  • Photos of the salesperson are not the norm in commercial real estate on business cards.  You can use photos in residential real estate, but its a bit ‘tacky’ in commercial (in my opinion, sorry!)
  • Use the front of the card to detail your name, address, email, website, office phone, mobile phone, fax, and title.
  • Use the back of the card to detail your specialities of service and skill.

When you get the business card just right, it is as good as a brochure, and is more inclined to be kept by the client or prospect.

You can get more tips for commercial real estate agents at our website right here at http://www.commercial-realestate-training.com

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Commercial Real Estate Agents – Signboard Count Strategies

When it comes to working as a commercial real estate agent, you really do have to know what is going on regards signs placed on properties for sale or lease in your local area.  By signs I mean those of your competition and those on the properties for sale or lease at the moment.  There are some factors to track in that process, such as:

  • Asking prices
  • Asking rents
  • Properties that have been sold or leased and the details of the deals done
  • Time on market
  • Numbers of properties listed in your area on an agent by agent basis
  • Proximity to other property nearby
  • Supply and demand for space
  • New developments currently known to be coming on the market in the next 2 years

When you monitor these things, you understand what is going on and that will help your ability to negotiate with sellers, buyers and tenants in any negotiations.  Market prices and rental evidence is hard to refute when you have all the right information at your fingertips.

Everyone today will think that they have a great property worth a lot of money or rent until you can show them what is going on out there.  Third party evidence is the key to listing, selling, and renting at the right prices.

It’s in slower markets like this that market evidence will change frequently.  Market evidence is the final deal results and only that; the asking prices and rents have only a remote relationship to the final deal.  Many commercial agents and property valuers will share market information with you on a reciprocal basis; in only that way will you know what is going on in the property market today.

In the listing of any property be prepared to talk about the known results of the listings in the general area.  Carry a chart or map with you for that very process.

Get some more tips for commercial real estate agents at our website at http://www.commercial-realestate-training.com/

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Leasing Property To Franchise Tenants Today

It is a common occurrence for commercial or retail leasing agents to be approached by franchise operators and groups looking for new premises from which to operate their next new business.  Franchise groups are a good source of new leasing business and over many sites.  On that basis you can build a great leasing market share from these people.

In saying that, there are some common challenges that franchises present you as the real estate agent acting on behalf of a landlord.

Here are some of those challenges:

  1. The term of lease that they require will have to match the term of their franchise agreement.  Given that most franchise agreements go for a period of 10 years, a lease of that length may not suit the landlord of the property.
  2. At the expiry of the lease term, the franchise agreement will also expire and on that basis the tenant may totally leave the site.  The issuing of a new franchise agreement is at the discretion of the franchise group.
  3. Their business model will require unique factors of operation or business branding.  They must be able to supply their customers with the expected business experience and outcomes.
  4. The lease for the premises will likely be the standard lease for the franchise group.  These leases are written from a tenant perspective and may not suit your landlord.  In such cases it is wise to get your landlord to send the lease to his solicitor for review and negotiation.
  5. The franchise group may demand exclusivity for the product or service that they provide.  In a complex property such as a retail shopping centre, this can be an issue.

Taken in balance the opportunities that come with this type of tenant are many but they take some understanding.  They like to deal with leasing experts; is this you?

You can get more tips for commercial and retail leasing agents at http://www.commercial-realestate-training.com/

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Every Day In Commercial Real Estate Should Not Be Wasted

If you have or are commencing a career in commercial real estate, you have to get consistent results in one form or another. Results can be in listings, closed deals, sales, leasing, property management appointments, and the list goes on. On that basis you cannot waste a day. Every day has to be planned. It is up to you.

So what goes on out there in the real world? Some if not most salespeople just take every day as it comes. They start work at about 9am and they stop work around 5pm. In between those hours stuff just happens. They have no plan, they have no system, and they do so many different things that consistency is non-existent. On that basis they do not give themselves a fair chance of success.

So what does this random process produce? The answer is poor quality open listings, average property enquiry, and not many deals in sales or leasing.

Low commissions will not make you wealthy. There are enough costs in this property game to drain most of your hard earned money inside 12 months. Do not waste time; if you have chosen this industry as your road to financial freedom, then you had better work to a plan and system. When things are not working, you adjust your actions and focus; that’s the rule.

If you really want to get somewhere in commercial real estate the facts are clear and have been set in stone by those high achievers in the industry.

  • Prospect every day to a consistent plan of streets and property type
  • Get to know lots of property people and business leaders
  • Create your own database that is accurate and up to date
  • Understand that you are the only person that can make your career happen
  • The results that you get are nothing to do with the market, the boss, or the office that you work for
  • Improve all your skills through practice on a personal basis (i.e. prospecting, cold calling, negotiating, presenting, pitching)

Life gets very hard if you do not follow the rules. When you do follow the rules, then things change quickly for the better; you have the keys.

If you want some more tips for commercial real estate agents and salespeople then visit our website at http://www.commercial-realestate-training.com/

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Building a Better Commercial Real Estate Business

When you understand the basic simplicity of commercial real estate, you can see what you have to do to improve your market share and commissions. It is really quite simple. Here are the keys:

  1. Find and talk to all the owners of good property in your local area. One day they will need an agent to help them take the property to the market. You must set up some relationships here to help you capture that need when it happens.
  2.  Get to know all the owners of all the major businesses in you local area. They may own or lease property, but either way they will need a local propert expert to help them.
  3.  Watch all the listings that come to the market. Some will sell and others will not. Position yourself to take the listing when the vendor needs another agent to help them.
  4. Monitor all the prices and rents that are achieved in the local area. These facts will help you negotiate and list property.
  5. Keep in close contact with the local council and planning approvals office so you hear about the new developments as they come through.
  6. Look for changes in the business community that can have an impact on property owners and tenants.
  7. Every listing should be an exclusive listing. On that basis you can market property listings well without the threat of other agents jumping your client.
  8. If you work on commission, make sure you know lots about leases as well as sales. The two are linked and frequently create opportunities either way.
  9. Build your knowledge of the local area and the deals every day. Quoting facts and figures is part of the real estate game. Without figures you cannot negotiate.
  10. Practice your presentations and pitch. You will be up against others frequently in a listing presentation opportunity. Make sure that your offering and services are more relevant than the rest.  That does not mean that you have to discount; but it does mean that you should know why you are better than the competition and be able to prove it.

This is all logical stuff; its just that it takes hard work and real effort on the part of the individual. Are you up to the challenge?

If you want some more ideas about commercial property agency practice, check out our website at http://www.commercial-realestate-training.com/

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The Traits and Habits of a Great Commercial Real Estate Agent

So many people enter the commercial property industry with little regard for the skills and knowledge that they need to develop. They get a job in an agency and then they start to look for opportunity and listings. If they had spent some time in understanding what goes on and what the market offers, they would save themselves a lot of time and effort.

The traits of a great salesperson and top agent are quite specific in commercial real estate. Here are some ideas to help you on the track to progress and success as an agent.

  1. The best agents know that their success is totally self-generated. On that basis what they do and how they do it each day, will be the blueprint for improvement. Action is omnipotent.
  2. You need to know a lot of people in the local property market. In most cases that will be several hundred people and you will have them in your database for ongoing contact. They are the decision makers that transact and own commercial property. When you control the good listings in your area, you capture the good property enquiry.
  3. Define quite clearly for yourself just who your clients are by type and location. This definition will help your prospecting model and prevent you chasing people that can waste your time.
  4. Research new people to call and contact every day. Without new people on your list, your business will slow and eventually stop. Good strategic planning saves you a lot of time and effort. Time is your main resource so use it wisely.
  5. Commit to a process of excellence in what you do and how you serve your clients. There are far too many generic agents in the property market that promise the world and provide nothing.
  6. As a basic rule, push every listing towards a sole or exclusive listing. When you control your listings you can devote time to marketing and attracting the right enquiry.
  7. Test and measure all your marketing on every property listing so you understand what works and what doesn’t. When the enquiry is slow, take a look at the format of your adverts, where you are lodging them, and what target market you are chasing.
  8. Get lots of signboards into your territory. Ensure that you have your name on a good number of quality property listings. In that way you will get more enquiries and that will help you build your database. Qualify everyone that you speak to; get their contact detail before you give out information.
  9. A database is your foundation for a better business and more commissions. The software that you use does not have to be complex or expensive; it is the process that is more important. The database process is quite personal and should not be delegated. Commit to your database and make it a part of your daily efforts and resolve for a better business.
  10. Monitor all the existing listings with other agents in the local area. You are responsible for your market and your market share; your boss and your agency have nothing to do with your progress and listings. When you really understand that fact, you will likely be more open to taking the right action to build your business.
  11. Decide what the main things are that you should do every day to build market share and listings. There will likely be 3 or 4 that are critical to help you build your business. They will be part of your marketing process.
  12. Practice your negotiation and presentation processes. You are competing with other agents all the time, and on that basis your offerings and services have to be superior.

How many great people are out there like this? Not many; and that is the opportunity that you can seize and develop. Is it hard work? Yes, but wouldn’t you expect a good thing to be hard work? Take action today and change some habits.

You can get some more ideas to help your career in commercial real estate at my website http://www.commercial-realestate-training.com/

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Best Marketing Tips for Commercial Real Estate Agents Today

When you work in commercial real estate today, the pressures for finding the buyers and sellers is high. On the seller side of the equation you can find plenty of them when you prospect and cold call every day. That being said, not enough agents do the prospecting at sufficient levels to get anywhere. The end result is slow progress in penetrating their market.

A good question to ask here is why would you not do something if it could bring you great benefits and market share? Only a few agents and salespeople out of every 100 ever really deal with the personal prospecting requirements and consistently get it right. In saying that there is a huge opportunity awaiting those agents and salespeople that take the required action.

Agents need to market themselves more. If and when they do that, results start to come in. It takes a good 3 months of hard effort to really create the change, but you will see new things happening fairly quickly. So what actions should you take? Try these for measure:

  • Prospect by cold calling each working day for a period of at least 2 hours
  • Selectively walk down the streets containing local businesses and drop in your card. Try to speak to the business owner about the local area and their property needs.
  • Get more signs into your territory on each and every listing. Your name should feature on all the signs that you place on your listings.
  • Build a significant database of tenants, business owners, landlords, developers, franchisees, franchisors, and financiers.
  • Look back into the local sales records for your area and contact call the property owners who purchased property about 3 or 4 years ago. They will be the next ones to make a move on property.
  • Talk to all tenants in your area about the expiry date of their leases. Keep in touch with them as that date gets nearer in case you can help them with alternative premises or property

Marketing yourself as a commercial property expert is not hard; it just takes consistent effort. That is where so many agents fall down. Are you up to the challenge?

You can get more free tips and ideas for commercial real estate agents and salespeople at my website http://www.commercial-realestate-training.com/

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Building a Commercial Property Sales Team

A career in commercial real estate sales and leasing is not for the undisciplined and unfocused salesperson. I am probably going to upset a few people here in what I write, however some things should be said to those that want a career in the industry or perhaps those that are employed already in the industry and trying to improve their position or income.

You can make a lot of money in the property industry if you work hard. The work however will not come to you unless you go out and find it. It really does not matter who you work for, because most of the leads and opportunities will be self-generated. To so many people start in the industry thinking that the business will come to them easily and directly simply because of the agency they work for. This just does not happen.

To be successful in the commercial real estate market, there are many things to consider and act upon. Here are a few of the big ideas and concepts that work for many:

  1. Each and every day you need to prospect for new leads and opportunities. This is a personal skill and cannot be delegated to anyone else. Even as you become more successful, the prospecting process still remains as a personal task that you cannot delegate. The real fact of the matter is that when you stop prospecting, your commissions and listings stop.
  2. One of the most important business tools you can use is a database software program. Certainly you do not have to spend a lot of money in the process of finding the right one; you simply have to use something that is simple and efficient. The process of success that you get from a database comes from the activities and calls that you do every day. This will take something like 2 or 3 hours each and every day to make the calls to new people that you had never spoken to before. This requires research the night before so that your call time is efficient and focused. This is how you build your pipeline of opportunity.
  3. Knowledge in the industry is a big part of the process of presenting, negotiation, and closing. Most of the people that buy, sell, and lease commercial real estate will be business people or property investors. They will usually know a lot about the property market and the property type. The negotiations that they undertake with you will be focused and factual. The only way you can work with people like this is to be equal to or better than the information and knowledge that they have.
  4. They say that practice makes perfect. Commercial real estate is no different given that you are working with many different people each and every day. The more people that you talk to, the more leads and opportunities you will find. The critical parts of the business are prospecting, pitching and presenting for new business, the listing process, inspecting properties, and negotiating. Every stage of the process requires practice and perfection. Those agents that are random or inexperienced really do not last unless they choose to improve. The clients that we deal with require the best experience and the most knowledgeable people; inexperience and inefficiency stands out.

There is a significant amount of work in these four items above should you choose to improve your commercial real estate career. The rewards are great for those that take the right action and practice the processes.

If you want more tips on commercial real estate as a career, visit our website at http://www.commercial-realestate-training.com/

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Information Memorandums for Commercial Real Estate Sales

In complex commercial and retail property it is common to use information memorandums (IM) in the marketing and inspection process. As an agent for many years I have seen all types of IM’s and everything from the good to the very bad. The fact is that an IM can assist the sale process and help the inspection process for the agent or salesperson.

The things covered in the IM are accurate and detailed; errors cannot be made. Topics include:

  • Title details
  • Land and Plot details
  • History of the property
  • Recent survey plans
  • Tenant plans of fitout
  • Encumbrances, Rights of Way, and Easements on the title
  • Tenant Mix information and status of any lease or vacancy matters
  • Tenancy Schedule and Lease Information
  • Outgoings history, reconciliation, and budget
  • Pictures of the property today
  • Rental and incentives information
  • Capital Expenditure information
  • Depreciation Schedule of Capital items
  • Orders, Notices, and other obligations on the property
  • Rates and Taxes information
  • Improvements on the property (Structural, Electrical, Mechanical, Hydraulic)
  • Expert consultants reports on specialist matters
  • Environmental and Heritage reports (if applicable)
  • Energy ratings and compliance
  • Sales turnover and MAT (retail shopping centres)
  • Customer visits and numbers (retail)

So the list can go on depending on the complexity and type of property. Importantly the information that is displayed in the information memorandum must be accurate in all detail. Get the property owners to certify its accuracy and approve its use before you send it out to any people making enquiries.

The IM can take many days to compile. It is a lot of work, but it is part of selling a large commercial or retail investment property. If I was the agent marketing the property, I would charge a fee for the IM report compilation. To me the fee should be of the order of $2,000 in the case of a large property and that cost should be a vendor paid item as part of preparing for the sale.

In my view a good IM is just so important to the marketing and sales process. It would not be handed to any person until they had signed a confidentiality agreement.

That is what I think and do about IM’s in commercial and retail real estate. Get some more ideas from my toolbox at http://www.commercial-realestate-training.com/