Month: August 2012

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Commercial Property Management Handover Tips

woman wrestling with cables
Choose the right information in any commercial property management handover.

When you take over another commercial property from another property manager, or perhaps even a landlord, it is really important to ensure that you capture all of the right information that has an impact on the property today and into the future.

Any errors that are made in the property management handover process can impact the property significantly into the future, and make your job significantly harder as a property manager.  Unfortunately the previous records relating to the property may not be complete or accurate.  Your questioning process needs to identify this challenge and work through the issues that it provides.

So here are some tips that relate to the handover strategy and your systems.

  1. Ask for complete and accurate financial records relating to the income and the expenditure activity in the property over the last 12 months.  You will need a detailed breakdown of the income and expenditure records for the financial year to date.  This will be essential when it comes to reconciling the property at the end of financial year.  The integrity and accuracy of those records should be questioned and checked.
  2. It is always desirable to get records of previous property reconciliations and budgets for the two or three years prior to your appointment.  This will help you in budget analysis and creation in the forthcoming financial period.  When you create a budget, keep detailed records of your assumptions and findings.  This is best done on a spreadsheet that is archived for future use in other financial years.  All of your assumptions will be critical to your budget tracking process throughout the year.  Simple things can be forgotten and complicate the overall property performance.
  3. Get copies of all lease documentation that apply to the current tenants and the tenancy mix.  Those documents should be checked against the current rental invoices as they apply to the property.  Copies of correspondence relating to previous rent reviews and options should be obtained.
  4. Look for situations of rental rebate, incentive, or discount.  Some of these things can exist for a number of years under an original lease agreement.  If that is the case, they will need to be merged into the new income budget for the property.
  5. Meet with the tenants as quickly as possible during the handover process.  The meeting is a personal process to be undertaken by the property manager, and will remove any uncertainty from the ongoing relationship with tenants.  They should understand who you are and how to contact you if any property matters occur from the date of handover.
  6. Every property is unique and special when it comes to maintenance matters.  It is wise to meet with the maintenance contractor’s for the property as soon as possible after the date of handover.  These contractors’ can tell you of the events to look for when it comes to property performance, repairs, and break down.  They will also give you a summation of expected future property performance within their specialty of plant and equipment.
  7. When taking on any new property, give special care and focus to the subject of essential services compliance to the current building codes.  Some properties will have issues of compliance that will need to be addressed.  Also look for any orders or notices relating to property occupancy or usage.  Failure to address any of these items can see the property lose its ability to function as a property investment.
  8. It should also be said that the terms and conditions of each particular lease should be checked to see if any matters of occupancy remaining outstanding or need to be policed.  Obligations can exist on either the tenant or the landlord in a variety of ways.

So these are some other main things to look at when it comes to a commercial or retail property management handover.  You can develop a checklist of the process which will keep you focused on task and allow you to maintain accuracy in any new property management portfolio.  Always keep notes of the handover process so that any misunderstandings or omissions can be proven at a later date.

If you want more free tips on commercial or retail property management you can get them in our newsletter or at our website http://www.commercial-realestate-training.com/

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Specialised Commercial Property Management Services and Fee Strategies

reception area in commercial office building
Commercial Property Management is very specialised. You need top property managers and reasonable fees for service.

They say that commercial property management is a service part of the commercial real estate industry.  Certainly it is that however it is very specialised, and the knowledge required behind the job is extensive.  It requires top property managers that really know what they are doing on a daily basis.

When you take on a new client or a new property management it is tempting to give a base service fee that is set on the passing income.  Whilst the formula is useful, it pays to understand what the landlord owner of the property wants regards reporting and service in the management of the property.  If you adopt the base fee approach, you also have issues of the fee reducing when the property vacancy level rises.

Here are some ideas about working with new commercial property management clients and setting your fees:

  1. Whilst you may want to set a fee based on passing net income (or gross income if that is your priority), always set a base fee that will be a minimum fee if the vacancy level rises in the property.  The base fee will protect you when the vacancy level rises.
  2. Your ordinary management fee that you charge should cover the general activities that are required for financial and physical management on a daily or weekly basis.  It does not have to cover the extra activities that may be considered special in the property.  They can be for the unusual things such as leasing upcoming vacant space, market rent reviews, attendance at court, lease assignments, lease subletting, and annual budget or reporting activities that take a lot of time and effort, beyond what you consider the ordinary property management tasks.  You have a choice here so set the right fee for the work involved.  Understand exactly what the property will throw at the property manager.
  3. Ask questions of the client before the management agreement is signed just so you know exactly what they want regards reporting and control from the property manager.  Rarely will you find that two landlords are the same.  Consider the time involved in giving them the reports and the feedback that they require.
  4. Look at the complexity and the age of the property.  Older properties require extensive control and management.  The maintenance activities in the property may also be higher on a regular basis.
  5. The size of the tenant mix and the complexity of the lease documentation will place pressure on the property manager from a time and knowledge perspective.  More tenants in the property will lift the time requirement.
  6. Assess the vacancy factor for the property now and in the future.  Is the property manager required to market the vacancies and what fee will they get for that?

So there are some special considerations here that should be worked through.  When you carefully consider the property and the time involved you will soon see the property management fee that you charge in a different perspective.

If you need more tips for your commercial real estate career you can get them here http://www.commercial-realestate-training.com/

 

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How Top Commercial Realtors Thrive in This Property Market

two business men talking in the street
Set your rules for a better commercial real estate business and agency today.

In this slower commercial property market, there is a lot of pain and discomfort being experienced by some of our clients and local property investors.  That being said, we as the local agents and realtors are the pain relief behind the equation.  We can solve a lot of problems for our clients.  We have the market processes and tools to do that.

Here are the typical frustrations of property investors in commercial and retail property today:

  • Higher vacancy factors and selective tenants
  • Protracted vacancy periods
  • Poor tenants in the tenant mix and unstable market rents
  • Less quality enquiry for a property that is taken to the market for sale or lease
  • High property outgoings in maintaining the property for occupancy
  • Extended time on market when it comes to selling or leasing a property
  • Reduced price or rent outcomes from a contract or lease
  • Difficulties with finance requirements and lenders

Rest assured that the property market does change and will get better.  Remember that just 5 or 6 years ago we had just come through a huge boom period of commercial and retail property sales and leasing.

In these more challenging times, we as the local commercial agents and realtors are best placed to solve property problems for our clients.  We have the tools and the ideas to move some of these challenging properties over a slump or hurdle.

Top agents can thrive in this market because they have the contacts and the database to do a lot of good things for their clients and property listings.  When the market gets tougher, the top agents simply focus with more action and relevance; they know what is required to help their clients and they set about doing just that.

So here are some tips to work with focus in this property market today:

  1. Work with a focus on the local business community.  They are likely to need property change or relocation.  Some businesses will be more successful than others; sort through the local businesses to see who wants help with expansion, contraction, or relocation.
  2. Some local property investors will be needing help with tenant retention plans and occupancy changes.  Your database of tenants will help them.
  3. Look at the older buildings that tenants are leaving.  Those buildings may be a case for renovation or redevelopment.
  4. The methods of sale or lease in this market should be carefully considered with due regard for the property and the surrounding area.  Exclusive listings for a lengthy period of time are the norm and not the exception.
  5. Vendor or client paid marketing should be obtained for every listing that is made exclusive.
  6. Take every listing into the local area personally to the business proprietors within regional proximity.  A current listing is a reason to talk to others.

In this property market, we are the specialists that can solve many issues for our clients.  It is just a matter of how that is to occur.

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Timeline of Leasing Commercial Property Today

facade of commercial office building showing windows
Establish timelines that can help you lease commercial properties quickly and effectively.

When it comes to leasing commercial or retail real estate today, there is a distinct timeline to the process that should be optimised and driven by the commercial agent or realtor.  Failure to drive the process can see the landlord or the tenant slow the entire process down.  When the property market is tougher like that of today, a slower lease transaction is not a good outcome for any of the parties.

As a special note it is worthwhile observing that many a solicitor working on the part of the landlord or tenant will also be a source of slow action or response.  Yes, I know solicitors are busy people, but the landlords lease document and transaction is really important.

So here is a timeline to develop and use in the marketing and leasing of commercial or retail property today.  These are the main issues to consider in leasing, and you may be able to add to the list based on your location and property type.

  1. Inspect the premises to be leased so you really know the features of the property and just how you will take people around the premises.  A well-considered inspection process will help in negotiations and conversions from initial enquiry to the creation of lease.
  2. Remove any hurdles or presentational issues in the property before the marketing starts.  That may mean renovation and carpeting or similar upgrades.
  3. Define the target market for the property to be leased so that you really capture the right people from your marketing efforts.
  4. Establish a targeted marketing campaign to attract the right enquiry.  As part of that process, choose the right factors that help you promote the property on the internet and in the newspapers.  What features exist in the property that will help lease it?
  5. Get a signboard on the property early in the marketing campaign to send the message to all the local business owners and property investors.  When the signboard
    goes up, take brochures to the local nearby businesses to spread the word about the property availability.
  6. Qualify the tenants coming off the marketing efforts before you show them the property.  The same rule applies when someone rings you off an advert in the newspaper or on the internet.  Ask the questions; in many cases the call may not be genuine and could be competitors seeking information.
  7. From a good property inspection, any lease negotiation should be evidenced and initiated in writing.  This will be by way of a well-constructed letter of offer or lease agreement.  Get the parties to show their intention on paper.  As part of that process ensure that you get a good deposit commitment from the party making the offer.  That should also include an agreement to provide a bond or band guarantee to the landlord as part of taking a lease from the tenant.
  8. If agreement is reached between the parties to do a lease, then documents should be prepared quickly by the landlord’s solicitor.  There should be a follow up process to ensure that the signing of the lease can occur quickly and effectively.  Add to that the necessary paperwork and deposit or rental money and you have a complete cycle of lease.
  9. When all factors of the lease agreement are correctly actioned by all parties, then and only then should the keys to the premises be made available to the tenant for fit out works to commence.  As part of that, the landlord should be approached to obtain the approvals of the new fit out construction and configuration.

So there are a lot of things to do here.  Be well prepared and use a checklist to the process.  Your leases will then be more effective in both negotiation and completion.

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Top Presentation Tips for Commercial Realtors

boardroom of an office
Be prepared for those tougher commercial real esate presenations in boardrooms.

When you do a commercial property presentation today to win a listing, the competition agents are likely to be ‘breathing down your neck’ and connecting with the client with all types of bonuses and ideas.  On that basis your presentation just has to be the best and most relevant to the client.

Why are you the best agent to market this property?  The client has to see the answer quite clearly and efficiently.  Your presentation will do that.

Here are some common problems that we see in today’s market.

  • The competition agents will be chasing your client or prospect constantly for a listing.  They will be filling the clients head with misinformation and ideas to destabilise your listing or opportunities.
  • The price or rent that you offer the client is likely to be different than that which they require.  Show them some relevant market evidence to help them understand the circumstances of the market today.
  • The listing type that you need may not be what the client wants to give you.  Always go for an ‘exclusive’ listing.  Open listings are a great waste of your time and effort; if they sell or lease, it is more from luck than anything else.
  • Your fees in both commission and marketing can be a hurdle.  Set fees that are based on a quality service and the time that you are going to apply to the listing.  Tell the client how you will take their property to the market.
  • The method of sale or lease can be of concern to the client.  They may not want to take too much risk in the sale or lease process.  That being said, if you know the right way to sell or lease the property then have strong evidence to support your arguments.

Here are some presentation tips to use as you present your ideas to the client about their property and their needs today.

  1. Do not use a fixed or written script that is likely to limit the presentation.  Be open and natural as you talk to your prospects to show your confidence and knowledge that can help them.  The confidence that they see from you will come from the body language and the words that you use.
  2. Use all the clients’ senses to convey the message.  Bring together two or more senses in your presentation so the client is involved and connected to your story.  You can do that by giving them something to hold (a proposal) whilst you show them some images or photos of the property, and as you explain your ideas and strategies.  Fully connect at all levels.
  3. Have solid recommendations that are innovative and relevant to the best outcomes for the client.
  4. Show them the competition properties that they are up against and how you can adjust around those issues.

Know the market and the relevant property solutions that are applicable to your market.  It is notable that many agents and realtors are too general in the presentation.  You must build your presentation on relevance and speciality that is connected to the property.  The client has to see that you are the best choice of agent to help them.

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Income Optimisation in Commercial Property Management

female commercial property manager reading file
Optimise your income in commercial real estate today.

When it comes to managing commercial and retail property, it is very important to optimise the income for the landlord.  The income for the property should be looked at both individually with separate leases, and across the entire property and the tenancy mix.

At the beginning of every financial year, there should be some form of budget created for the tenancy mix and the potential property income.  All of the leases currently existing will have rental strategies and rental increases to merge into the income budget.  This income budget can be incorporated into the business plan for the property for the upcoming year.  The best time to do the budget is in the months of April and May, just prior to the beginning of the financial year.

Here are some tips relating to income optimisation in commercial or retail property management:

  1. Always allow for some measure and method of adjustment given that the property market is always changing in your local area.  When you set a property income budget, it should be reviewed on a monthly and quarterly basis.  Any established trends in the local area should be tracked and then be used as a form of rental adjustment for the landlord if those trends are firm and established.
  2. The vacancy factor in your local area will change based on the supply and demand of available property.  To monitor this process, you should track down the changes to the property development plan in the region.  Look for any new developments that could have an impact on your property.  Those new developments will have a timeline of construction and occupancy; it is likely that those developers will also have an allowance for rental incentive to attract tenants into their property.  That incentive will have an impact on your property leasing strategies.
  3. Market rentals will change from time to time.  They do not always go upwards, and more commonly will stagnate or slightly reduce when the property market slows.  To help you with the levels of market rental, you will need to understand the impact of incentive in the market rental structure as it exists today.  If an incentive exists in any market rental negotiation, it creates what is called a face rental.  That face rental will be discounted by any property valuer back to a level that is truly aligned to the effective rental and the market.  Incentives create a false level of rental.
  4. Business sentiment will change from time to time based on the local and regional economy.  Some business segments and business types will be more active and successful than others.  Track those business segments and monitor the needs for property change or occupancy.  Some of those tenants could be relocated to your property if the opportunity arises.
  5. Existing tenants in the property should be categorised into long-term tenants and short-term occupants.  Some tenants will be more attractive to the landlord and the performance of the property over time.  They may have a tenancy profile or business identity that encourages other tenants to the property.  Reviewing the tenancy mix is called tenant retention.  You can create a tenant retention plan as part of your business planning model.
  6. Pressures of expansion and contraction will change from time to time with all other tenants in your tenancy mix.  Look for those changes, and keep close to those issues through the business year to identify any pressures of change that may need to be accommodated in the building.  It is better to have a tenant in your property that you understand and appreciate, than find a new one that is unproven and costly in occupancy changeover and leasing costs.

The income for a commercial or retail property can be enhanced when you fully understand all of the above factors and adjust the property accordingly.  It is not unusual to adjust the business plan or for a property three or four times during the financial year.

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Laws of Prospecting and Cold Calling in Commercial Real Estate

business woman on a telephone headset
Build your commercial real estate prospecting into your diary and do it every day at the same time.

In today’s commercial property market, listings and commissions can be a bit challenging.  That being said, top agents know how to prospect on a regular basis and build their pipeline of opportunity.  It is the pipeline that helps them with quality listings stock and qualified buyers or tenants.

In any property market, the prospecting process or system that you adopt should be well managed and implemented on a daily basis.  Prospecting is not something that you can do once a week, or when you get sufficient time.  It is also something that should not be delegated over to someone else; far too many agents are remote and distant from their market for this very reason.

It is interesting to note that so many agents and realtors will overlook the prospecting process if they have other things to do that they consider more important.  This single one decision impacts their future business in a major way.

Top agents prospect every day regardless of market conditions.  They know that the prospecting process will reap benefits over time.  Developing the habit of prospecting and cold calling takes significant effort on a personal basis.  That is where many salespeople struggle and give up.

Here are some tips to help you establish your prospecting model in your local property market place.

  1. Take charge of your time and commit to prospecting for 2 hours every day.  Choose the same 2 hours where you believe you can connect with your group of prospects and business owners.  In the space of 2 hours you should be using the telephone as the primary and introductory point of contact.
  2. When you make the cold call over the telephone, you are simply seeking to understand if the person has a need or an interest.  Many people will not require your services now or in the future.  The cold call that you make should filter those people out of your database list.
  3. As a general rule, you should never pitch or sell your services over the telephone.  That does not work in commercial real estate given that the services you offer are quite complex.  To help you here I go back to the point that your telephone call is simply to see if the person has a need or an interest.
  4. The dialogue that you use in the telephone call should be friendly and conversational.  To achieve this advantage you will need to develop your script and practice the words.  When the words you use become natural as part of the conversation, your conversions to meetings in and from the telephone call will escalate.
  5. Set yourself some targets to be actioned as part of the call process.  That will normally be the number of outbound calls, and the number of meetings achieved.  Typical ratios will be one or two meetings from 40 or 50 calls.  In making 40 or 50 calls you will not get through to that many people.  In fact you will only get through to maybe 20 people at the most.  On that basis you need to be prepared for the well-known rejection factor.
  6. Keep your prospecting and call processes organised so that you can follow up old clients and people spoken to previously.  At some stage in the future, they are likely to be prospects for active property activity.
  7. When you have done your daily calls, you can get out of the office and into the sales territory for any meetings that can occur.  Meet more people at every opportunity.

The prospecting process in commercial real estate is quite specific and specialised.  That is why it never pays to pass the task on to someone else.  Passing the ‘buck’ and avoiding the issue simply doesn’t work.  Top agents do their own prospecting on a daily basis understanding that they can achieve significant market knowledge and advantage from talking to other people.

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Commercial Agents and Realtors – Sales Presentation Tips for Your Next Listing Pitch

business man thinking
Think about your commercial real estate sales presentations and make them better in every way.

When it comes to you the agent connecting with the client or prospect and pitching your commercial real estate services, practice and relevance will help you convert more listings in the right way and at the right time.  In a tough commercial property market, you really do need top presentation skills to match your sales pitch.

Most quality property listings today are achieved through a competitive sales pitch or presentation process.  Many other agents will be doing their variation of presentation to the same client before any agency appointment is decided and signed.  Some of those other agents will also be offering discounts and incentives to influence the clients thinking.

In many cases, the client will have already decided on a particular agent before the presentations are made from all agencies.  They will use the presentation process to satisfy their choices and make a final decision.  It is the early relationships with the client that influence the decision they make in any competitive presentation.  Top agents build relationships on a continual basis for this very reason.  You need to do the same.

Here are some tips to help your presentation strategy in today’s property market.

  1. Ensure that you have complete and comprehensive local market knowledge relative to the property type.  You will need to know about prices, rentals, supply and demand, time on market, and current levels of enquiry.
  2. Take the time to review the individual property and inspect it comprehensively before the presentation.  That will also include a review of the other properties adjacent to and nearby the subject property.  Look for any issues or relationships that will have impact on the subject listing.
  3. Review all the other properties currently on the market in the local area.  Look for challenges relating to quality, price, method of marketing, and availability.  Your property listing may need to be adjusted around these other competing properties.

I’m not a big believer in the use of laptop computers as part of a commercial property presentation process, given that they are usually poorly handled by the relative salespeople.  If anything they can be a big distraction to the client and confuse the message or sales pitch about the property.  That being said, there is one strategy that really works with the use of a laptop computer.  It is quite simple but very effective.

Take a significant number of photographs in and around the property together with other competing properties in the immediate adjacent area.  You need probably 30 or 50 photographs for this process.  Set the photographs up on the laptop so that you can run them from one folder as a continual automatic slide show.

When you get to meet with the client for the presentation, you simply let the slide show run automatically in the background as you talk to the client.  The photographs help you in two distinct ways; they keep the attention of the client given that the photographs relate mainly to their property, and they also allow you to move in and out of points of discussion relative to any property matters in the photograph.  Do not focus too much on the laptop and allow the client to glance at the photographs as you talk.

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Commercial Realtors – Leasing Opportunities with Franchise Tenants

blur of people walking through shopping centre mall
Franchise tenants can work well in your tenant mix in a retail shopping centre.

In commercial and retail real estate today, there is a significant shift in leasing to franchise tenants in the tenant mix.  The reason being, that franchise groups bring a brand name and a business model to any vacant area in a property.

Not all franchise tenants are the right choice for a commercial or retail property.  Due regard should be given to the existing mix of tenants and just how the franchise tenant will integrate into the overall property.  Some of these franchise tenants can create extra demand on the property such as:

  • Security
  • Access to the premises
  • Rubbish and waste disposal
  • Car parking
  • Customer access
  • Hours of operation
  • Marketing and display of signage, etc.

So a lease for a franchise tenant should be carefully considered and negotiated.  That being said, many franchise tenants will have their own lease to submit to the landlord of a property.  Whilst that is convenient, the landlord should carefully consider the differences between the franchise tenant lease and the standard lease for the property.  In most cases the lease provided by a franchise tenant focuses on just one thing; the running of the franchise business.

Here are some tips for negotiating leases with franchise tenants today:

  1. Meet the tenant on site and walk through the factors of occupancy that are critical to the operation of their franchise business.
  2. Understand that the franchise business will have a business agreement that will need to integrate with the duration of the lease of the property.  Some landlord flexibility may be required to make that match.
  3. Ask questions about special occupancy needs such as grease traps, air conditioning, cleaning, refuse, and customer involvement.  If there is a cost to be considered, ask about who pays.
  4. The make good provisions at the end of the lease will always be important.  The landlord requires clean and reinstated premises.
  5. Understand just how the tenant will be integrating their marketing into the property and what signage they will require for the process.  They will need to position signage where consistent branding messages are conveyed to the customers and passing traffic.
  6. If the tenant operates outside of standard property hours of operation, it will be necessary to consider the costs that occur as part of that process.  The costs should be directed to the tenant to pay as part of the lease structure.
  7. As to who will be the lessee in the property will be a valid and important question.  Normally the franchise group does not want to lease a tenancy space unless it is of prime importance to their business model and operation. That is why they only directly lease the prime locations.

A franchise type tenant is a good tenant; they just need extra attention to ensure that the lease in the property works for both parties.

Asking questions in the lease negotiation will always help with the future occupancy for both parties.  Look for any issues of challenge and deal with them upfront.

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Commercial Realtors – Get Referral Leads from Old Clients

business man and woman talking
Ask for the referral business with your old clients. They know valuable people to make contact with.

In commercial real estate we need leads and lots of them.  Every avenue of opportunity should be taken to see what listing or transaction is possible.  In this market we should leave no stone ‘unturned’.  A sale can lead to a lease (or vice versa), and either can lead to a property management appointment.  Good service and quality follow-up with our clients always positions us for the future.

One of those very valuable sources of opportunity is ‘old clients’ from closed and completed transactions.  If we served those clients well from the very start, it is likely that two things will happen:

  • We will get some referral business
  • We will get some repeat business from the same client

We can do a lot with established relationships with clients and old clients.  It is just a matter of deliberate focus.  So the question is how do we keep the relationships active and fruitful?

Here are some ideas to help you build a ‘pipeline’ of relationships with clients and keep the ‘doors open’ for the long term.

  1. Industry briefings are always useful.  So much is going on in the market that clients find up to date information on trends and strategies very useful.  Guest speakers can be sourced to speak at quarterly events or evening property briefings.  Those speakers could include a property solicitor, accountant, developer, financier, and taxation specialist.  When you add people from your team to the group of speakers you have a very powerful selection of experts to talk about the local property market today.
  2. Newsletters should be sent monthly to all clients and contacts.  That will also include new people that are being contacted as part of the teams prospecting activities.  The newsletters can be sent by email or post.  The choice is yours and should be based on what works for you.  Quality is the key to maintain readership.
  3. Property listings should be sent weekly by email to those people that have agreed to get the information.  It is best to send no more than 8 listings in each email sent.  In that way you have a greater chance of the content being read.  If you work with different property types, you could send the property emails in groups based on the interests of the reader (retail, industrial, or office property).
  4. Constant contact every 90 days with clients and previous contacts.  It has been proven that the constant contact approach every 90 days converts to meetings quite well if you keep the contact up.
  5. Cross sell your services from sales, to leasing and property management at every opportunity.  One transaction will lead to another if you keep the doors open and the discussions on track.

If you have not kept in contact with your old clients, then now is a good time to start.  In difficult property markets every lead should be encouraged and built on.

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Commercial Realtors – The Secret to Better Market Share

business men outside office building
Take the right steps to build market share in commercial real estate and property.

Here is an interesting question to ask any commercial real estate salesperson.   ‘What are you not doing today that you should be doing?’   In the answer that you get you will likely find the big problems that are holding them back from achieving more from their market.

Here are the things that most commercial sales people do not do enough of:

  1. Prospecting for new business and new clients.
  2. Inspecting the competing properties so they know what they are up against in the local property market.
  3. Keeping in contact with those clients that have the really tough listings to market and sell or lease.
  4. Touching base with all the local businesses on a daily basis to see what property ‘needs’ they may have in the future.
  5. Personally taking each property listing to the local business community through a street walking cold canvassing process.
  6. Finding and connecting with new property investors that may want to expand their property portfolio.

I could go on but I think you get the message here.

Step Up to the Challenge

Salespeople avoid the things that are hard or challenging.  Reluctance soon sets in and the salesperson is then about the same as all the others in the local area.  I don’t know about you, but being as good as the competition doesn’t thrill me too much; better is a good target and a benchmark.

Many, if not all salespeople join the commercial real estate industry knowing that the opportunities are huge in both income and lifestyle.  That fact is always there in all markets, good or bad (even now).  The good results that we get are driven from the actions that we take.  It is the big and important things that we do not do each day that hold back the results that we get.

So opportunity exists right now today in your property market; you just need to tap into it.  The best place to start is with the really important things that you are not doing.

Some underperforming salespeople just move from agency to agency every 18 months or so, thinking that the move will solve their market share and listing problems.  Other salespeople of similar type stay with the same agency and just go nowhere special when it comes to listings and commissions.  The income ‘pain’ just goes on. 

Enough is enough!  It is time to make a change and take charge of the future.  A better time in the industry is available for all; the key lies within all of us.

Top agents take charge of what they are doing.  They move strongly ahead with a consistent plan of attack.  They are prepared to take the difficult steps forward every day.   Soon they set new habits as part of taking action and dominating the property market.

In just a short time things can change in a major way.  Are you up to the challenge?  Are you ready to rise to the top of your market?  Now is the time to get started.

Need more tips to help your commercial real estate business?  You can get free tips at our website right here.

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Commercial Realtors – How to Get More Exclusive Listings and Why You Should

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Get more exclusive listings as a priority in your commercial real estate business.

In commercial real estate, there is a lot of difference between the servicing requirements behind exclusive listings versus open listings.  Any open listing situation is virtually an experiment on the part of the client and they will have minimal commitment to you as the salesperson or agent helping them.  The client will generally be listening to many agents and trusting none.

So it is the exclusive listings that will bring us better quality stock and trusting clients.  That being said, it is important that we give our clients reasons to choose the exclusive listing method of sale or lease.  As part of the sales presentation or pitch process, you should have some solid reasons to recommend an exclusive listing process with your agency. Why are you better than other agents?

Many agents will choose or recommend the exclusive listing method to the client, and then make some fairly generic statements regards the reasons to choose an exclusive listing process with their agency.  Just about every experienced property investor has heard a variation of the following:

  • We know the local area very well.
  • We have sold or leased a lot of property recently.
  • We have been in the area a long time.
  • We are the best agent in the local area to sell or lease this property.
  • We have the property knowledge to do the job for you.
  • We have good people in our agency that will move the property for you.
  • We have relationships with the other agencies across the country and they will also market your property.
  • We will market the property at our cost.
  • We will fully target your requirements of price range and timing.
  • We will lower the commission because you are a good client.
  • I will keep you fully informed.
  • We are the best agency to sell this property for you.

None of this will make an impact on an experienced property owner or business proprietor.  The listing decision will be made on your relevance to help them and the confidence that you give them.

It is quite disturbing when you look at this list to understand how generically similar a lot of agents and salespeople are when they do their sales pitch.  Top agents will go a lot further than the generic sales pitch approach.  Top agents will drill down into the matters that really count regards the property and its position in the local area.  They will also come up with very specific strategies to market, inspect, and negotiate the single listing.  Clients really do know when they are dealing with top agents.

So here are some tips to help you service your exclusive listing clients.

  1. Tell them how you will be marketing the property and show them some solid examples of that process.  Give them some choices in the marketing approach whilst still making your recommendations.
  2. Take the client to the property and walk them through the inspection process as you see it, explaining how you will build on the features of the property and the improvements.
  3. In each week of the exclusive listing marketing campaign, you will need to be connecting with the client with updates regards inspections and enquiry.  The client should be spoken to at least every two days throughout the entire listing agency period.  If nothing has occurred from any part of the planned marketing activity, it is still important that the client knows that.  Lack of information will turn them against you and make any future negotiations difficult.
  4. When an inspection has occurred with the property, direct feedback should be given to the client.  This third party feedback will be valuable in helping you condition the client to the prevailing market conditions.

Clients are always important to a commercial real estate agent.  In times of a slower property market, is imperative that we provide high levels of interaction and service at all times.  In this way you will achieve better results with all of your listings, and the chance for referral business at a later time.

You can get more ideas for commercial real estate agents and realtors at our website right here.