Posted on

3 Tips for Leasing Commercial Property Today

Commercial Office Building Leasing
Lease more commercial buildings the right way. Use a checklist approach.

When it comes to leasing commercial property you really do need to know what is going on in the local property market.  In only this way can you match your marketing activities to the levels of enquiry that currently exist.

Three tips to help you with the leasing process centre on market evidence and market activity.  Here they are:

1)      Assess the levels of net and gross rent for comparable properties nearby before you start your leasing process.  Your property will need to have asking rentals that are similar to the other properties because the tenants that you attract through marketing will already know what the rental levels are in the market today.  The differences between net and gross rent will also be of interest to tenants and centre on the levels of outgoings that apply to the asset.  Most tenants will be concerned regards any extra rental payments that need to be made beyond the base rent.  This is where the levels of outgoings can frustrate the leasing process.  Make sure that your outgoings are in parity to properties of a similar type nearby.  If they are an extra payment to be made by the tenants, ensure that the outgoings are realistically structured and charged.

2)      Choose a lease format that covers all the activities and uses of the property.  The use of generic leases today is far too common.  In most cases generic leases are only relevant on the most basic of property (such as an industrial shed).  It is interesting to note that many landlords take the generic lease process because it is way cheaper than a specific lease; when things go wrong with the property or tenant they then have troubles in solving issues given that the lease is just too basic.  The message here is for the lease to be drawn up by a good commercial property experienced solicitor.

3)      Get a good rental guarantee to boost your landlord’s position and protection in the case of lease default.  Tenant default is a common problem today, and the traditional ‘Directors Guarantee’ is not much value in the scheme of things.  The landlord must be able to get easily their hands on ‘real money’ if the tenant defaults; that will normally be only through a bank guarantee or cash bond.  As to the amount of what should be asked for and held as part of this process, the answer is usually ‘the most you can get’.  That should be between 3 and 6 months rental (all types of rent including outgoings and any taxes paid) depending on just how difficult the property could be in the reletting process.

There is no doubt that the leasing process and activity is high in many locations today.  When sales opportunity slows, the leasing activity tends to lift.  Good agents can handle leasing as well as sales and they adjust their activities depending on what the property market requires.

You can join our commercial agents newsletter right here.

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

Posted on

Lifting Productivity in Your Commercial Real Estate Team

Commercial Real Estate Sales Team
You must solve problems of productivity in the commercial real estate team the right way and do it fast.

There is no doubt that a commercial real estate office is a busy place with agents coming and going at all times of day.  The situation gets worse the more salespeople that you have on your team.  It should be said that productive salespeople should not be in the office much during the day, but out in their territory.  The only time that they should come into the office is when they have some calls to make, or paper work to complete.  They should be in the office for only 2 hours per day maximum.

The office principal or team leader that wants the salespeople in the office most of the time is really not giving enough trust to the team to get on with the job. 

Sure, if you have some members of the team that are not producing then they are likely to be wasting the business day and not doing the right things.   In that case you need to know where those sales team members are and what they are up to.  But do you really want them in the office?  Wouldn’t it be better for them to get out and about and meet the people?  Couldn’t you get them to give you a diary update of movements at the end of the day or week that would satisfy your questions?

Poorly performing salespeople that cannot account for their movements should be dismissed as part of an ongoing business cleansing process every 3 months or so.  There are ways to manage out the underperformers.  A constant recruiting process goes hand in hand with running a real estate business.

Salespeople are intelligent and will make their own choices.  If their choices do not match your business model then they should go somewhere else and be helped to do so.  Do not let any underperformers become the ‘elephant’ in the sales team that is frustrating everyone else and taking the majority of your focus.  You and the team do not need the stress of the issue.

Why would you want to tolerate a member of the team that is not producing and is destabilising everyone else?  Sure, they may be providing some income and that fact may hold back your decision to sack or dismiss them, but eventually the ‘elephant’ issue will become so frustrating that it will have impact on your personal performance as team leader.  Remove on any ‘elephant’ issues quickly.  Get on with supporting and helping your good people achieve.

Here are facts that apply to running salespeople in a team:

  • Great salespeople like flexibility and support to get on with the job and produce commissions
  • Great salespeople will produce business their way if you give them the flexibility and the trust to do the business
  • Great salespeople know that they are responsible for the results that they achieve and will get on with the process if you give them the leverage to do so.

If you do not trust any or all of the members of the sales team then you either have the wrong people, inexperienced people, or your need to adjust your business practices.  Trust is really important when it comes to optimising listings and commission results from the real estate team.

Whilst you want the team to perform, the sales team need to see and feel the trust between you and them.  If they know and feel that you do not trust them, they will break the rules anyway and eventually leave the business to move somewhere else where they think they will be ‘trusted’.

Don’t make the sales office a ‘roller coaster’ of emotion for the sales team.  If you are the team leader, give them stability, trust, and direction in the office.  Give them the real flexibility and trust to do a good job and achieve.  Manage yourself first and foremost.

The team needs the leverage and opportunity to be out in the market place most of every working day.   Track their performances by KPI’s and if they do not soon show their results in the figures, then you have the wrong people.  You cannot micro manage salespeople for too long; they will take too much of your time and soon revolt and move on.  Give your top performers flexibility and trust above everything else.

Check out some more tips for commercial real estate teams at http://www.commercial-realestate-training.com/

Posted on

Commercial Real Estate Agency Results Leader

Commercial Office Skyscrapers
Look at sales person performance differently in Commercial Real Estate Agency

In this commercial real estate market place, it pays to be a results leader when it comes to the agency performance.  Results leadership should be from a base of both agency outcome and salesperson performance.

The traditional commercial agency performance is usually ranked on the basis of one or more of the following:

  • Numbers of listings in the marketplace
  • Market share for the agency ranked on current listings and assessed by Internet and advertising counts
  • The time on market for the average listing to be sold or leased
  • The conversion rate of listings to successful transactions against those that are not sold or leased
  • The numbers of property managements held by the business and the fees generated per month
  • The numbers of quality properties on the books currently and compared sales person to sales person.
  • The conversion of listings to completed transactions
  • The average commission per sales transaction and per person
  • The mean average of the achieved sale prices by property

So all of these factors should be tracked and assessed.  This should be done on a monthly basis so you can see exactly how the business is performing (weekly assessments do not show you the shifts quite as easily).

You can take many of these numbers and drill down to the level of individual salesperson performance.  From that process you can compare and rank salespeople into one of the three categories being top performers, improving performance, and new recruits.

So how should you rank each member of the sales team to help them understand how they are improving and show them how they can improve?  One of the biggest mistakes a lot of real estate agencies make is to only compare salesperson to salesperson.

The reality of the situation is that every member of the sales team is different and on that basis should be assessed and compared to their previous personal best performance.  It is a bit like being a member of the swimming team.  You know what the fastest swimmer is achieving, and certainly that can be a goal, but the way to reach that high point is through improving your own personal best performance to date.  Small incremental steps personally get the process of improvement underway.

When each salesperson is compared to their own personal best performance to date, they can accept the fact of improvement and will do something about lifting personal outcomes and personal performance for the business.  The secret to the process is that each salesperson respects and understands their personal skills and opportunities.  They then take and more readily accept ownership of the self-improvement and performance process.  They know that they can improve and are more willing to do so.

Posted on

Commercial Real Estate Marketing – Get it Right the First Time

Commercial office building
Ask the right commercial property marketing questions to attract quality enquiry.

There are many ways to market a commercial property today, but agents and salespeople should make the right choices so they can attract good levels of enquiry.  This then says that every marketing plan or process should be optimised for the particular property.

So you as the local property agent want to sell or lease a commercial property?  Ask yourself these questions:

  • What are the best times of year to sell or lease the property?
  • Are there any factors or hurdles that should be addressed before the property is taken to the market?
  • What will be the best method of sale or lease to attract the right levels of enquiry?
  • What publications and media outlets will get the message out to the right segments of audience?
  • Who are the buyers or tenants that can act in this economic environment?  Do these buyers or tenants have any limitations on price or rent?
  • Are there any local changes in business sentiment or community demographic that can impact the promotion of the property?

Answer these questions before you proceed to the stages of property marketing.  I like to call these the ‘foundations of property marketing’.

When we capture the enquiry, we have something to work with not just for the subject parcel of land or building, but we have a source of enquiry to feed into other campaigns.  That is the opportunity that an agent brings to the clients they act for and serve.  An agent with a comprehensive database can attract the right levels of enquiry and cross sell or cross lease as the case may be.

It should be said that vendor paid marketing is an essential part of property promotion today.  Every exclusive listing should be optimised by a vendor paid marketing campaign specifically designed for the property and the location.  Gone are the days of generic marketing and random sales or leasing strategies.

The best commercial property agents and salespeople give the client real solutions to solve the property pain and reduce the time on market so that a sale or lease can be achieved as quickly as possible.  Specific marketing campaigns can achieve this.

Get more free tips on commercial real estate property marketing at http://www.commercial-realestate-training.com/

Posted on

How to Build a Commercial Real Estate Sales Team

Selling or Leasing Commercial Office Buildings
You need great people to handle commercial buildings like these. Choose your sales team well.

When it comes to commercial property sales and leasing, it is really important to have a great sales team behind you as the agency principal.  Finding the right people or getting the best performance from every person can be very difficult.

It needs to be said that out of every 10 salespeople there are on average only 2 that are really very good at what they do.  Everyone else is rated in some variation of ‘average’.  To be ‘very good’ I mean the following:

  • The consistency to prospect for new business every day no matter what is on the agenda
  • Knowing how to negotiate at all levels with all types of landlords, property owners, investors, business leaders, and tenants
  • To pitch and present commercial property services in ways that really match the client or the market
  • To have a comprehensive market awareness and how to build opportunity from that
  • To understand how to close and document any type of sales or leasing agreement for all property types
  • To list and sell or lease at better than the industry average and to have a shorter time on market factor in closing sales or leases
  • To know how to target market commercial property to capture the best levels of enquiry locally
  • To dominate the local property market by area and property type
  • To close on exclusive listings and vendor paid advertising each and every time
  • To be the agent of choice for the local property investors and business leaders
  • To be excellent managers of their own time on a daily basis.

It’s a challenging list for many salespeople and agents.

There is a choice here and it comes down to each and every salesperson that you may employ.  Do they have the personal discipline to improve themselves and make their mark in the local property market?

My ‘cut’ on this is that as agent principals we have to be very careful in the employment of new people.  The poor selection of staff costs tens of thousands of dollars and hundreds of man hours.

I once had something to do with a large agency where the principal would only employ new members of staff for the sales team if they passed the test on a Psyche Sales Analysis.  The criteria on the analysis were centred on ‘sales’ and ‘negotiation’ skills.  In hindsight the business was very successful and remains so.  Any person that did not pass the ‘analysis’ would not be employed.  The right character and drive had to exist in the salesperson before they would be considered for employment.

Can you train existing salespeople to improve and grow their personal skills in commercial real estate?  Yes you can.

Should salespeople be open to learning and change to improve their market share and performance?  Yes they should.

How long should you tolerate average salespeople that fail to improve and grow their skills?  Not long.

If you want some more ideas on commercial real estate agency sales and leasing, you can get that at our parent website http://www.commercial-realestate-training.com/

Posted on

Marketing Tips and Ideas for Commercial Realtors

industrial property sales training
Market each property based on target market and local levels of enquiry.

When it comes to leasing and selling commercial real estate today, it is quite important to make the marketing campaign unique and special for each and every property.  Given the limited numbers of people enquiring for any property purchase or property lease, each listing has to be target marketed.  Generic marketing processes do not work and are more of an exercise in luck than anything else.

That being said, the process can only occur with exclusive listings.  Openly listing properties in such a tougher property environment is virtually a waste of time.  Dedicated marketing campaigns with specific processes to attract enquiry should occur in conjunction with vendor paid marketing funds.

It is interesting to note that some property owners still insist on openly listing their property.  It is also interesting to note that the most successful salespeople in this market are those that selectively list property with a majority of those listings been taken on an exclusive basis.

Here are some marketing tips that can be adopted quite easily with each and every marketing campaign.

  1. In most cities and towns, the majority of enquiry coming from most advertising and marketing efforts of commercial real estate usually occur between the days of Wednesday and Saturday each week.  For this reason the marketing efforts should be concentrated into this time frame over the full duration of the campaign.
  2. The Internet is increasingly becoming the best value marketing tool for commercial properties today.  We do however see an abundance of properties being listed on the Internet and it therefore becomes more difficult for a single property to reach the top of the search engine rankings when it comes to certain suburbs or locations.  Other strategies can be adopted to give the property placement a particular premium or special location.  Invariably these strategies to cost money and should also be part of the vendor paid marketing process.
  3. A signboard on the property will always create enquiry from the local business community.  A good signboard with specific details relative to the subject property will be of great advantage to the enquiries you are trying to create.
  4. When you first release a property on to the market for sale or lease, fresh and listings create reasonable interest for a period of three or four weeks.  On this basis it is desirable to focus most of the marketing effort into this early window of time.

Do not rely just on the traditional marketing approaches today.  Most properties require specific effort and direct marketing in addition to traditional marketing.  This means getting on the telephone and scrolling through your database to find suitable prospects to talk to.

Commercial and Retail Properties will sell in this market but specific effort is required on the part of the agency and the salesperson.  Take the time to map your marketing campaign with a reasonable balance of direct and indirect marketing processes.

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

Posted on

Point of Sale Marketing Material for Commercial Real Estate Offices

Reception area of real estate office
Place 'point of sale' material into your commercial real estate office reception area.

When a client or prospect comes to your commercial real estate office for a meeting or to make any property enquiry, there are different ways to extend your services and advertise your property solutions.  ‘Point of sale’ advertising is normally thought of in retail shop situation, but it can also help you in attracting enquiry, listings, and more commissions over the long term.

Think about what you can do in the reception area of your office.  How can you spread the news about what you can do as local commercial property specialists?  Exactly what do you do for property owners, landlords, business owners, and tenants?

Your services can and should be promoted in your reception area as well as in any meeting with prospects and clients.  Your business marketing material should support the process.

Ideally you should have a reception area that contains ‘point of sale’ brochures and information about your current property listings but also the various services offered by you and your team.

Here are some ideas for development and placement of that ‘point of sale’ material:

  1. Local property agent profiles of all your team will be of interest to the people as they wait in the reception area for any meeting or in making an enquiry.   All of your staff should have personal profiles on specially prepared marketing material in reception.  Add to this a business card stand for all members of your team.
  2. All of your exclusive listings should be displayed in the reception area on display cards or similar featured display stands.
  3. Have a few specially prepared guides to help the different types of people that come to your office.  The guides can be written from the angle of sales, investment, leasing, tenant advocacy, and property management.
  4. Research material relating to the local property market will be of interest to most people.  Include details of sales, rents, supply of space, demand for space, and vacancy factors locally.
  5. Remember to provide a few examples of great marketing campaigns and quality properties that you have worked on in the past.  Show that you have been successful in the past and that you are agents of skill and knowledge.
  6. Plenty of quality photographs of local well known property will also keep the reception area interesting.
  7. All your marketing material should be consistently branded in colour and form.
  8. Include some forms in your reception area for clients or prospects to fill in their contact detail; make it easy for them to request information in both email and hard copy form.  All genuine contacts need to get into your database with the supporting information of what property type and location is relevant for each person or group.  The standard form should reflect the essential local detail and ask the right questions.

A real estate office can really be a vibrant place that sells your knowledge and expertise.  Use these ideas and others to spread the impression that you truly are the great property people that you claim to be.

You can get more free tips and articles on commercial real estate agency practice at our website http://www.commercial-realestate-training.com/

Posted on

5 Keys to Marketing Commercial Real Estate Today

Office Tower in City
Reach your target market for each commercial property with creative marketing.

The marketing of commercial real estate today is more important than ever before.  Limited levels of enquiry from buyers and tenants mean that the local real estate agents need to capture, inspect, and close sale or lease transactions from less numbers of people.  For this reason a systemised approach to marketing is the best way to promote every commercial or retail property.

Here are some ideas below to help you with marketing and also get more tips and ideas on commercial property marketing at our website http://www.commercial-realestate-training.com/

Systemised marketing generally only occurs with exclusive listings.  In this way the agent can devote sufficient time and energy to the promotional process.  Properties that are openly listed across a number of agencies are really an exercise in luck and agents should not devote excessive time with these properties.

Here are some rules to the property marketing process:

  1. Vendor paid marketing is more important today so that sufficient momentum can be built into the promotional period.  Many vendors find it difficult to part with extra cash as part of the listing process.  If they are genuine, the decision will not be hard.  The real estate agents need to be prepared to sell their services around this model.
  2. You can provide the vendor with alternative marketing packages.  Generally three marketing packages are sufficient to provide suitable selections to choose from.  The alternative proposals provide different levels of costings.  The property owner can then choose the package that they can afford and yet still receive adequate impact in marketing the property.
  3. The best methods of marketing should include Internet, newspapers, direct mail, signboard, brochures, cold calling, e-mail marketing, and database.  Your choices here should be based on the defined and chosen target market for the property.  Understanding the best ways to reach the target market will allow you to formulate the campaign correctly.
  4. The methods of marketing should match the methods of sale or lease.  If you choose a timed method of sale (such as auction, tender, or expressions of interest), then the first three weeks of the campaign will be very important to build momentum.  At least half of the marketing funds will be spent during this time.  Do not commence the marketing campaign without the vendor funds being paid by the client and received by the agent.
  5. Track all the responses that you get from the marketing methods implemented.  You will then know exactly what works well and then you can use that marketing method to more effect.  As part of that process, you can report to the client every few days to give them a progress report on the marketing and any inspections that are arranged or undertaken.

The marketing of commercial property when undertaken correctly will shorten the time on market and optimise the levels of enquiry from suitable buyers or tenants as the case may be.  Commercial real estate agents today need to be very skilled in the marketing process.

Get more tips and ideas on commercial property marketing at our website http://www.commercial-realestate-training.com/

Posted on

Commercial Property Agents – Provide Real Marketing Solutions to Clients

Commercial Office Fitout
Consider the commercial property and all its factors before you take the listing and release it on the market for sale or lease.

When you list a commercial property for sale or lease on an exclusive basis, it is important to offer real marketing solutions to the client.  The time and the effort that you dedicate to the marketing process will help you lift the rate of enquiry and generate more inspections.

It should be said that any listings on an open list basis should not receive the same amount of marketing treatment from the commercial agent.  Open listings are just a process of random marketing when and if you think you may have a buyer or tenant as the case may be.  Open listings are something you get when the property owner really does not trust you, or is not fully committed to your agency; either way they should not get much of your precious time.

So lets go back to the marketing solutions that you can provide.  As a general rule each listing should be looked at with a focus on a specific target market and how you can tap into it.  When you know what the target market is, you can design a great marketing campaign.  All of this takes effort, and that’s why an exclusive listing process is a preferred method of property listing.

Here are some ideas to help with marketing commercial property:

  1. Take a walk through the property with the client as part of the familiarisation process with the listing.  As you do this, consider the best ways to take prospects through the property and how you will explain the features and improvements to them.  It may be necessary for you to have some form of property information brochure to comprehensively detail aspects of the building, site, or improvements.  Look at the property from the aspect of a buyer or tenant and tell the property owner what you see.
  2. At the start of every marketing campaign, the property should be comprehensively and personally marketed into the local area.  This means getting some brochures prepared that fully detail the listed property information, and then taking them to all the neighbouring businesses and property owners.  From this process you will soon pick up on a lot of market intelligence that you can use in many different ways.  Every good property listing is an excuse to get further market intelligence from the local area.  Personal contact is a key to the process.
  3. The traditional signboard on the listed property remains one of the most effective marketing tools you can use.  The signboard should be the first thing that is undertaken in the marketing campaign.  If you can get a signboard that is specially designed to incorporate details of the property, then this will give you added benefit and more enquiry.
  4. The process of listing the property on the Internet is an essential part of the property marketing campaign.  That being said, there are specific things that you should be doing personally to build your Internet profile with regard to your property type speciality and local area.  You can write blogs and post them on the Internet in a blogging site where you can talk about your experiences with quality property and what people are looking for in todays market.  If you do this regularly, the Internet will soon see your name and associate it with the local area and particular types of property.  That will help your personal rankings in the search engines; regularity in the process is really important.
  5. As a general rule, vendor paid marketing is the normal approach with exclusive listings.  In this market there is no other way to comprehensively promote each and every quality property.  To help with selling this concept to the property owner, it is wise to have three alternative marketing packages separately costed.  In this way the client can make a choice; invariably they usually choose the middle priced package.

To market a commercial or retail property today, the expertise and capabilities of the agency and the salesperson are really quite important.  Marketing a property today is not an experiment with inexperienced people.  Any genuine client will accept your recommendations and allow you to promote the property well.

Need more help on this or some tips for commercial real estate sales and leasing agents?  You can subscribe to our free newsletter at http://www.commercial-realestate-training.com/

Posted on

Commercial Realtors – Use Quality Photographs on Commercial Property Marketing

Commercial and Industrial property marketing
Use quality photographs and different angles to attract the enquiry to your property advertisements.

When it comes to marketing commercial property for sale or lease, make sure you as the agent have quality photographs taken of the property, and that you feature them on all the marketing material that you use.

You only have one chance to attract the attention of the buyer or tenant as the case may be.  The photographs should be taken so they show the property at the best angle and in the best way.

Commonly today you see many ‘top end’ agents and realtors using professional photographers to take the photos.  The cost of the process is carried by the vendor paid advertising, but the benefits far outweigh any concerns that the client may have on spending a bit more money in marketing.

To sell the extra cost of the photos to the client, show them some samples of quality photographs of other properties and then compare them to ordinary photographs taken by salespeople.  Given that photos of properties usually feature on the internet and in the newspapers and brochures, the photos are really important to first impressions of the property.

To take good photographs of commercial and retail property today, there are a few rules that can be used:

  1. Use a good quality SLR digital camera that allows you to take a photograph of at least 12 megapixels.  When you work with a camera of this quality, the photos you take will be clear and colourful.
  2. Take the photos of the property in the early morning or late afternoon depending on which way the building faces.  You will then get the right colour reflections on the front of the building from direct sunlight.
  3. Use elevated overhead photos to show just how big the property is and the boundaries.
  4. The photo should be taken at an angle to make the image interesting.
  5. Fill the photo frame with the building at its best angle.  Do not waste the foreground of the photo with expansive vacant space such as that with a car park.
  6. Give the photo some perspective by having an object or person in the foreground.
  7. Look for and avoid the obstacles that appear in photographs such as telegraph poles and power boxes.  You can generally take photographs at angles to avoid these things.
  8. Besides the main photographs of the front of the property for the marketing, take many more photographs in and around the building and the greater property surrounds.  You can use these in a slide show on your laptop with the client or any prospects.

When you adopt some of these processes, you make the marketing process all that easier.  Buyers and business owners then take more attention with your advertising and with the property details.  Isn’t that what the property owner wants?

Want some more free ideas and tips for commercial agents and realtors?  Check out our website at http://www.commercial-realestate-training.com/

Posted on

Commercial Property Agents – Questions to Ask a Seller Before You List and Sell

How to qualify commercial property sellers
Agents need to fully qualify sellers before they list property today.

There are many factors that prompt a seller to market and sell their property.  In most cases they will seek an agent to help them, and rightfully so as the agent should have a comprehensive knowledge about these things below and others:

  • The best method of sale to attract solid and qualified enquiry
  • The ways to take people through the property so the features of the property are correctly shown
  • How the particular property is positioned in comparison to other nearby similar property
  • The right ways to price a property given the prevailing market conditions
  • The most effective ways to market a property for sale today across a number of marketing solutions.
  • The right ways to document a sale contract given the particular property

So let’s say that a seller comes to you to market their property and that you have all these issues under control; you can give the client real solutions for their property concerns and pain.  The only other thing to be concerned with is the intentions and motivations of the seller.  To help with this there are some essential questions to ask the seller before the listing is accepted.

Here are some of the big issues to ask the seller about before you list the property:

  1. How do they want to sell the property today?
  2. Do they have any perceptions of prices locally and if so what?
  3. Have they spoken to other agents? If so who and when?
  4. Have they had the property on the market before and if so when?  What was the outcome of the property promotion?
  5. How long have they owned the property?
  6. Why did they purchase the property?
  7. Are there any issues relating to the property that could impact the purchase, inspection, or marketing?  If so get the detail.
  8. What do they know of other property sales in the same area?
  9. What is the main outcome that they must achieve from the sale process?
  10. What is the ideal timing of the sale for the seller and why is that?

When you know these things you can move to discuss the methods of sale and marketing that are available to the property owner; importantly you should have solid recommendations and reasons for your approach to selling the property.

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

Posted on

10 Top Facts on Commercial Real Estate for Realtors

Commercial Realtor in office
What Commercial Realtors should know about today when listing commercial property

When it comes to you as a commercial agent, selling and leasing commercial or retail property, there are certain things that you must understand so you can comprehensively attract the right type of property enquiry and negotiate effectively.

It is hard for clients and prospects to refute the real facts of the market.  They will however have a real opinion regard prices and rental.  Sometimes there is a real difference between their opinion and the real facts.  This is where the professional commercial agent will use market evidence to effectively negotiate and close the listing, sale or lease as the case may be.

Here are some of the most significant facts and evidence that need to be tracked and controlled; when you do this, every listing and negotiation will be far easier for you as the real estate agent.

  1. Prices achieved and evidence of the local market comparable properties will always be important.  The advertised price or rent has nothing to do with the final achieved contract price or lease rental.  Real estate agents can generally track down the final terms of the deal through other agents or real estate valuer.  Use this evidence in your discussions with your clients.
  2. Rents achieved in property leases will be variable and contain different elements or components that require analysis.  For example the main ones are gross rental, net rental, outgoings, incentives, and rental holidays.  Get full evidence of each lease transaction so you are not guessing about the final leases that apply locally.
  3. Other listings in the local area will be marketed at a price or rental.  As part of that process, you should inspect these comparable properties to understand just how relevant they are to your listings.  Get details of the asking rentals and the asking prices.  Compare them to your property.  Identify the best value and adjust your prices and rents if appropriate.
  4. Time on Market will always vary from location to location, and property type to property type.  In some property markets the time on market can be extensive before a suitable contract or lease is achieved.  It pays to track the time on market for all the quality properties in your local area.  As part of that process, you will need to understand the best methods of sale or the best methods of lease that should be used in each case so your time on market factors are not excessive.
  5. Improvements deemed essential for occupancy should be understood.  The buyers and tenants of properties today understand what they are looking for when it comes to commercial or retail property occupation.  For a commercial property to be competitive be improvements should be of a suitable standard, type, and design.
  6. Best marketing methods should always apply to the particular property type available for sale or lease.  There is no point marketing a property in a way which will not attract the right levels of enquiry.  This is where the local agent can provide real value to the property owner with expert opinion on the marketing methods to be used.
  7. The best inspection processes should always apply when taking a property buyer or tenant through the building.  Each property will have a special way to approach the inspection process.  The features of the building and the property should be identified and incorporated into the property inspection.
  8. The best method of sale should be chosen relative to the property type and the prevailing market conditions.  The local agent should understand the best way to promote the property and take it through the sale system.
  9. The best method of lease will apply to the commercial or retail property based on the property improvements and the overall configuration of the fitout and the floor plan.  These factors will dictate the ideal tenants to occupy the premises.
  10. Services and amenities will apply for each and every improved property type.  Importantly these services and amenities should satisfy the demands of a modern business.  Ask questions about the electricity, telecommunications, water, gas, internet, the main roads, and property access.

When you really know your local property market, you can really negotiate well and bring your contracts and leases to a close more easily.  You can get some more tips for commercial realtors and agents at our website http://www.commercial-realestate-training.com/