Month: September 2012

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Commercial Property Agents – Checklist for Advertising Commercial Real Estate For Sale or Lease

High rise office tower looking up from the ground level
Every commercial or retail property should be uniquely marketed to the special target audience that it suits.

The process of advertising a commercial property for sale or for lease may have changed somewhat over recent years, but the need to promote the property remains as important as ever before.

Every property listing is a great excuse to talk to local business owners and property investors; in this way you will get more market intelligence and opportunities to work on as a commercial real estate agent.

Decisions and Strategies

Before you start to advertise a property, a few decisions and strategies should be set.  In this way you can optimise the enquiry that you create for the commercial or retail property.  Here is a checklist of some of the main things and ideas that you can use in establishing the advertising program and campaign:

  1. Inspect the property comprehensively to understand the factors of presentation that should be addressed prior to any inspections.  If something doesn’t look good then it should be removed or fixed; we have limited qualified enquiry today for most properties that are taken to market, and every enquiry should be optimised.  You do not need ‘hurdles’ when it comes to property marketing.
  2. If the property is already tenanted and therefore to be sold as an investment, you will need to comprehensively review the lease documentation to see how it will impact the marketing efforts and the target audience that you wish to attract.  It may also be that you will need to address any weaknesses in the lease and occupancy documents (such as rent reviews, options, and vacancies) prior to marketing.
  3. Determine the 4 things that the property clearly offers a buyer or tenant.   Will these things influence the enquiry rate that you could create?  If so, they will need to feature prominently in the advertising copy.
  4. Get some professionally prepared digital photographs of the property that can be used in the marketing effort.  It is remarkable just how these photographs will help you create enquiry as the property is advertised.  Most agents do not take photographs of sufficient quality to help generate property enquiry.  Ensure that your vendor is encouraged to have a portfolio of professional images taken of the property before the campaign commences.
  5. What will be the best timing of the property promotion?  In saying that, have due regard for seasonal and business pressures that may impact your target audience; on that basis, choose the right advertising material and how it is initiated into the market.
  6. Some marketing efforts will be more successful than others.  For this reason you should have a process of ‘test and measure’ when it comes to monitoring all of the marketing for a particular property.  If something is not working, change it before you waste too much precious marketing effort and funds.

It pays to have all drafted advertising and layouts checked by others in your business team before the material is lodged with the respective media.  Get these people to tell you of any weaknesses in message and presentation.

When you take the right steps in preparing your marketing, you will find that the outcomes from each property promotion are more genuine and specific to the property.  In this way you can optimise the outcomes that you require.

Do you want some more tips on this?  If so, join our Newsletter on this site.

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Embrace Retail Tenant Mix Analysis in Shopping Centre Leasing Today

woman shopping for groceries
Retail tenant mix analysis is a special skill for specialised property agents.

A retail property is quite special when it comes to tenant mix.  In many ways the tenant mix will shape the future of the property.  The success of the market rent for the property will come from the relevance and stability of the tenant profiles and the anchor tenants in the property.  Are you an expert in all of these things?

In saying all of this, if you are a retail property manager, shopping centre manager, or perhaps a retail leasing specialist, you really should spend time on understanding the factors that strengthen a tenant mix profile in a retail property.  In this way you bring better value and knowledge to your clients and property owners.

Retail property leasing and performance is really the pinnacle of skill and speciality in investment property today.  Most of us that know the retail shopping centre industry well, find retail property very interesting and challenging.

A successful retail property is a balance of many things; as a retail specialist, you need to know what those things are and how to work with them.  Good clients pay well for top retail property agents to help them.

Here are some of the important factors that come into a tenant mix plan and tenant retention plan for a retail property today.

  1. From the outset you must know what your customers want and how the property interacts with the local community.  For this reason it pays to survey your customer base and find out what they think of the property and its tenant offering.
  2. Talk to the tenants in the retail property.  They will have factors that they can share regards shopper requirements and buying patterns.  Also note that some tenants will have different ‘stories’ to tell in this regard given their retail offering and position in the property layout.
  3. Work closely with your anchor tenants so you understand just what they are seeing in shopper buying patterns and movement.  Integrate the anchor tenant to the specialty tenants in the property to optimise mutual trading advantages.
  4. Do you have common areas in the property where people and shoppers are encouraged to congregate and spend time?  Do you have a food court in your common area layout that will help the shopper retention factors in the property?
  5. Look at the lease terms and conditions for all the tenants.  As part of the tenant retention plan it pays to negotiate any lease renewals early so you know just how much vacant space is coming up for renewal; then you can plan how you want to use it.
  6. Expansion and contraction factors in a retail property are always happening.  Some tenants will need more or less space; that is why you should create and how you should manage your tenant retention plan.  Look after the good tenants in the property and manage the poor tenants out of the property at the end of their lease term.  Over time the market rental can be underpinned by better tenants working in cooperation with each other.
  7. Should you give tenants any options for a further term in a lease negotiation?  Not necessarily is the right answer.  The final decision on lease options will be based on the overall tenant mix, the property renovation requirements, and the landlord’s investment plans.  Most large shopping centre owners do not like giving options for a further lease term given that it takes away a lot of control that they would otherwise have in a shop location and its position in the tenant mix.

Some of these factors can give you real control on the future of a retail property.  Formulate your tenant plan and put it into motion.  Over time this will help your retail property perform more effectively as the retail trading environment and economy shifts and changes.

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Super-fast Cold Calling Success in Commercial Real Estate

business woman making telephone calls
Get your facts and research ready to make great cold calls in commercial real estate.

In commercial real estate sales and leasing, you need results when it comes to cold calling.  There is no doubt that the cold call prospecting process is a significant part of the business generation system that you should be running.  That being said, you still need to get results from your telephone contact processes.  Tracking your numbers as you make the calls is really important.

To get the call system up and running for you I have provided a number of tips that will help you with establishing the right mindset, and building the processes to support the results that you will achieve.

  1. The first two or three weeks in the call prospecting system are always the toughest.  That is because it takes time to develop a new habit, and you have had years of other activities to break or reshape.  Developing new habits are part of the commercial real estate business and certainly part of the prospecting process.
  2. Every day you will be contacting many people in the local area.  The key to the process is in making lots of calls in the easiest possible way.  When it comes to commercial and retail property, the best place to start is in the business telephone book.  Every business will have a relationship to commercial or retail property as a tenant or an owner.  When you ask the right questions, you will get the market intelligence that you need.  Local business owners will also tell you more about the local area and their immediate location.  It is very easy to telephone 50 businesses from the telephone book on a daily basis.  As you do this, you should track your findings and the comments from relative prospective business owners.
  3. To telephone 50 businesses, it takes about 2 hours.  You will not get through to 50 people during that time or establish 50 reasonable telephone conversations.  Those people that you cannot contact today should be put into the pipeline for a return phone call.  Out of 50 telephone calls, you should get through to approximately 15 to 20 business proprietors.  It is then simply a matter of asking the right questions.

Many salespeople look at the cold calling process incorrectly.  In our industry, it is very difficult to pitch over the telephone.  On that basis your initial call should simply be to find out if they have a need or interest.  Following that point of qualification, you can generate a meeting with the right people.  On that basis you will not be wasting your time.

The super-fast process to cold calling is simple and straightforward.  When you stick to the rules above, you will find that results are achieved.  Keep yourself focused and detailed when it comes to capturing information.

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Prospecting Rules for Top Commercial Real Estate Agents

Business man walking in street
Set your own prospecting system to win more business in commercial real estate agency.

Without a doubt, prospecting is the most important tool in your commercial real estate toolbox.  Without a good prospecting model your commissions and listings will flounder.

The ‘golden rule’ to establishing a prospecting model is to make it a daily event.  You cannot look for new business once per week.  When it becomes a central part of your diary on a daily basis, then and only then will you see results.

If life is that simple, why is it that so many commercial real estate salespeople really do not prospect well, if at all?  Most salespeople suffer from a mindset issue that holds them back from making ‘cold’ contact to people that they have not spoken to before.  They just ‘hate’ the process.

When you start anything new, the process does take time to ‘settle down’ and gain momentum.  Setting new habits over old habits that you have established over the years is quite difficult.  Persistence will however get you through if you set up your model of prospecting.

Here are some rules to help you get a good prospecting model together:

  1. From the very start make sure that the prospecting time in your diary is the same time every day.  So often salespeople break this rule and a habit of prospecting is not created.  It is best to do the process in the morning first thing before anything else takes over.
  2. You will need a simple script to use as part of making cold calls.  The simple script should be an ‘opener’ to a conversation.  It should not be a pitch for new business; a conversation is what you want when you reach new people.
  3. Start your contacting model with local businesses.  They are easy to find and approach.  You can use the business telephone book to help you here.  Those businesses will tell you a lot about the local area and be a great source of market intelligence.  In some cases they will tell you who owns the property.
  4. Define your boundaries and your streets.  In this way you will know the ‘priority zones’ where you think the main properties are located.  Opportunity starts to show itself when you focus and dig into a zone to extract all of the local information.  Systems like this are really important.
  5. Use a good database that is easy to use and backed up to the internet.  So much work today occurs out in the field.  You need to get to your database from a mobile telephone or laptop computer in the field.

Our industry is built on established ‘face to face’ relationships.  Getting in front of the right people is a big part of building your market share.  Remember, you are a self-promoter of your experience and relevance to the prospects that you talk to.

Sign up for our newsletter if you would like more information on prospecting.

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Industrial Property Agents – Leasing Tips With Heavy Industry

man working on pipes
Industrial leasing must allow for the special plant and equipment in an industrial property.

The customization of an industrial property is achieved through the integration of the real estate, its established and new property improvements owned by the landlord, and the machinery and inventory of the tenant.  This relationship can occur as part of the lease negotiations between the tenant and the landlord.

If the customization of the plant and equipment is going to be extensive and elaborate, the terms of the lease will need to be suitably and carefully constructed.  It is important to identify the different levels of plant and equipment that are owned by each party.  The lease document is the place to do this.

If costs are to be incurred by the landlord in modifying the plant and equipment and to help the tenant in establishing occupation, then the initial property modification costs should be amortized across the lease term.  Any money outlay by the landlord should be built back into the income recovery.

You can calculate the cost recovery alternatives through a discounted cash flow with appropriate rental recovery assumptions across the initial lease term.  The rent reviews and the market rentals to be charged during the initial lease term can be modified for recovery of amortized costs.

Distinguishing the Differences

It is often difficult to distinguish between the plant and equipment owned by the tenant, and that which is owned by the landlord.  For this very reason, any new lease should clearly detail the ownership factors and the maintenance factors that apply to the existing plant and equipment within the property.

The landlord may own some of that plant and equipment; however the maintenance may be passed across to the tenant as part of ongoing occupancy.  The lease document is the way to detail this factor.  It is then up to the property manager to ensure that the appropriate levels of maintenance occur during the lease term.

Clear definitions and relationships need to be set when it comes to leasing a complex industrial property with complex cross ownership structures of the plant and equipment.

Taxation Considerations

Generally speaking, the costs incurred in establishing new plant and equipment within an industrial property will have some advantage in depreciation when it comes to taxation.  Clear relationships need to be set between the tenant and the landlord as to the initial cost outlay and the application of depreciation.

Any property landlord should consult with their financial adviser before they make the final decisions on capital costs incurred in a new or established industrial property.

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Commercial Property Agents – Set Your Targets in Sales and Leasing

businessman giving thumbs up signal
Start to focus your career in commercial real estate agency. The results are great in any market providing you work hard on the right skills.

When it comes to working in the property industry, commercial real estate can be very special and unique.  The knowledge required to be an expert in your field is quite specific.  For this very reason it pays to specialize in a property type and a location.  All the ‘top agents’ do exactly that.

You can be a sale and or leasing expert, or perhaps a commercial property management and leasing specialist.  The important thing is that you are very good at what you do and you can talk to the service you provide in a comprehensive way.

I should also make a special note here about ‘retail property’; retail is much more specialized than office or industrial property.  If you are a true ‘retail expert’ then focus on the special issues of retail property performance such as tenant mix, leasing strategies, and increasing sales performance for the retailers.  All of these things lead to a great property performance.

Our clients like to deal with ‘property experts’ that have a very good command and control of the market.  Whilst your office can have a good marketing position and perception in the local area, you personally should also have the same.

Here are some tips to help you get the right focus in your career and steer the process forward.

  • Find a top agent or mentor to help you with ideas and focus.   Experience is a great thing and those that have been working successfully in the industry for a long time will have ideas that they can share with you.
  • Watch the good people in the industry to see what they do.  Some of your competitors will be better than others in market share and closed transactions.  Some salespeople in those competitor businesses will be ‘top agents’.  How did they get to that position and what do they do every day to build their market share?  Look at their marketing efforts and their property speciality; are there any differences in what you are doing?  How can your mirror their ‘good’ processes?
  • Systemise your day so you stay on track and move ahead in your plan.  The only real resource that you have in the industry is the time that you use every day.  Don’t waste a minute of time on things that do not matter.
  • Personally create a database that grows through your daily prospecting efforts and directed action.  You will capture a lot of information in that database that can take you forward into new property opportunities.  The capturing and recording of the right information is a personal skill; ensure that you do all of this work yourself so you take ownership of the information and use it to the fullest of its circumstances.
  • Avoid poorly organised salespeople that make excuses.  There are a lot of these people around.  Negative comments and ideas from these people do nothing for your momentum and market share.  Whilst the property market may appear slow or sluggish, don’t let the comments of ‘poor performers’ hold you back from trying something new and relevant.

In any property market there are always opportunities to be captured.  In most cases your results are driven by the number of relevant people that you know and maintain contact with.  It always comes back to who you know and how you keep up the contact.

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Goal Setting in Commercial Real Estate Agency Today

business woman climbing ladder
Set your goals and targets to achieve results in commercial real estateagency today.

In commercial real estate sales and leasing, the process of setting goals will help you stay on track in your personal business and marketing plan.  In this property market one thing is certain, everything changes quite frequently.  For this very reason, a good goals focus system will help you maintain your momentum to the market share and commissions that you require.

When the property market is slow and tough, it is very tempting to absorb the negative comments of underperforming salespeople in your office.  Excuses are very common in this industry.  It is best to shut out these people from your business practices and your social activities.  They can offer nothing to your end result as a professional commercial real estate agent.

Here are some tips for setting stimulating goals that can drive your business ahead.

  1. Understand the market that you serve both geographically and by property type.  When you narrow your activities in this way, you can be far more specific in your marketing efforts.
  2. Look into the history of the area over the last few years.  Make sure that you are working on the market segments that are attractive and active.  Also make sure that you are specialising in a part of the market that is growing and vibrant.
  3. Your goals should be specific to your end result.  That will normally be commissions, listings, closed transactions, and active clients.  All of these things are personally controlled through your prospecting efforts.  On that basis you should build prospecting into your daily diary activities.
  4. Given that our industry changes so frequently, set goals for a period of 12 months that are quite specific.  Beyond 12 months is almost like a wish list where the goal posts will change subject to property market conditions.
  5. When you set goals for the period of 12 months, they should be reviewed on a weekly and monthly basis.  In that way you will know if progress is being made, and on that basis you can make adjustments.
  6. Measuring your success towards your goals should be achieved through ratios and results.  In the first instance, you will need to know where you are right now.  That is in the number of listings, commissions, and percentage of market share.  Beyond this current point, everything will be an improvement.

One of the biggest problems in setting goals is that most people will forget the process after a short period of time.  Other issues take over and daily events become more random.  If you want to proceed in this industry, your goals become points of the compass to keep you on track to your business plan.

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Commercial Property Managers – Security Tips in Managing Commercial and Retail Buildings

Security control room in office building
Devise a security system that builds better tenant and customer comfort.

When you manage a lot of commercial or retail properties you will know how frustrating and diverse the issue of security can be with many different property types.  Each property will have factors of security that should be managed and optimised.  Every tenant has to integrate into the security plans and systems for a managed property.

There is a lot of difference in security systems and procedures that are utilized in retail, industrial, and office properties.  On that basis you really do need to know each managed property very well when it comes to security needs and responses.

A well-managed and operating property will be a reflection of the good property management systems that are implemented on the property.  Security is part of that.  Here are some security concerns and aspects that could be considered as you manage your portfolio.

  1. Fencing around the property should be reviewed for effectiveness.  That will include any breaches, lighting issues, modification, and stability.
  2. Many properties will have car parks that require special security considerations.  Customers and tenants using the property should be provided with a secure car parking environment both in office hours and out of office hours.  The location of the property will have some bearing on this car park issue.  Do not forget to look at how the car park is used at different times of day.
  3. Loading docks in the property will be accessed at special times and with differing types of vehicles.  How is this done and what security concerns evolve from this?
  4. The entrances and exit points to the property should be looked at.  As part of that process consider the door ways and the exit points that are involved in emergency evacuations.  It is likely that you will need expert consultants to help you with planning workplace health and safety issues as they apply to property use and access in times of safety or emergency events.
  5. Lighting in a property will always be of concern.  Lighting should be checked frequently to ensure that it does the job it is required to do.  If the building is used after hours by customers or tenants, the lighting will need special consideration.
  6. Guards and security patrols may be required in a managed property.  It really depends on the property location and the tenant mix.

The age, design, and location will always impact the way that a property is used by the tenants and the customers.  It should be noted that a retail property will usually have greater levels of security coverage and response to keep the property safe and secure for occupants and customers.

Security is a valid need in property performance and function, and on that basis should be structured into the outgoings costs recovery for the property.

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Tips for Inspecting Commercial Properties for Sale or for Lease

commercial agent holding folders
Prepare for the property inspection with all of the relevant information. Take plenty of notes.

In commercial real estate you will be inspecting many different properties for many different reasons.  Over time this can become second nature, however complacency in the property inspection can see you overlooking an important item or fact that can have a real impact in your property transaction.

Given that there are a few different property types that you will work on, you can have a checklist approach to all of them.  In other words you can a specific checklist to work on each property type.  For example:

  • Office property single level and or single tenant
  • Office property high rise with multiple tenants
  • Retail property single shop
  • Retail property multiple shops on single level
  • Retail property medium to larger size with multiple tenants
  • Industrial property of various sizes including warehouse and office configurations

All of these property types can be quite specific when it comes to inspecting and listing.  Respect the differences and have a selection of listing checklists and questions that you would ask relative to the property type.  When you do this it sends the right message to the client that you really do know what you are doing and that you have the knowledge to handle this property well.

In many situations you will be inspecting the property with the client in preparation for potential listing.  For this very reason it pays to have a comprehensive approach to documenting and questioning as you move through the property.

Here are some things to incorporate into your inspection checklist:

  1. Get the title search and legal property description before you meet with the client.  This will help you will the facts of what the property is and how it is positioned in the location.
  2. Check out the zoning and the permitted use of the property relative to the existing local development plan.  If you are going to sell or lease a property, it pays to know that it is ‘legal’ in its function.
  3. As you move through the property with the client, take notes of what is said as you may have to fall back on those notes later in evidence or in support of key negotiations.  Some clients are well known for selectively telling you things about the property, and not all the issues that you should know that could impact the sale or lease.  Look at the property with a questioning mind; look for the issues and the problems that a property presents to you in marketing and negotiating.
  4. Take digital photographs as you move through the property as this will help you remember the conditions and configurations of the improvements.
  5. Services and amenities should be documented as tenants or buyers to the property will want to know those details.

As a general rule, you should not ‘price’ a property until you have had time to consider the property detail, reviewed the competing listings, and looked at comparable sales or rentals.  If you do this effectively it will help make the listing of the property more relevant to the market and the current levels of enquiry.

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Commercial Property Agents – How to Find Tenants for Your Property Clients

business man reading newspaper
Reseach will help you find tenants for your properties today.

Selecting a tenant in a commercial or retail property can be a challenge.  Vacancies can occur within the property from time to time throughout the year.  Some of those vacancies will be expected, whilst others will be the result of a tenancy default.

When you manage or lease a commercial or retail property, it is wise to incorporate a lease management and tenancy mix strategy into the property business plan for the property each year.  The lease management plan will help you when it comes to finding and negotiating with new tenants to the property.

Given that each particular property is unique, and every landlord has special priorities relating to their property investment, the selection of a tenant to fill a vacancy is quite important.  Here are some tips that can be applied to selecting a new tenant for your commercial or retail property:

  1. In an ideal world, you want the tenant to be of good quality and high profile.  The tenant of this type will bring stability and benefits to the overall tenancy mix.  Other tenants in the property can benefit from a new high profile tenant entering the property precinct.  For this very reason, franchise tenants and the associated branding they take with them will be quite desirable in the tenant selection process.
  2. The landlord for the property should be encouraged to establish a standard lease that matches their property intentions and property investment.  This lease can then be easily used when you negotiate with a new tenant.  It should be noted that many solicitors acting on behalf of property clients do not understand the property, its location, or its functionality.  Encourage the client’s solicitor to visit the property first before any standard lease is put together.
  3. The age of the property and the intentions of the landlord will have impact on the refurbishment and renovation activities to occur.  The lease for the tenancy should be prepared with due regard to tenancy renovation, and property refurbishment.  It is not unusual to ask the tenant to renovate their tenancy every three or four years as part of occupancy.  A condition can be placed in the lease to this effect.
  4. Any tenant seeking to occupy vacant premises should be able to provide some history occupancy in another property.  It is desirable to talk to other landlords or property managers to ensure that your intending tenant is of high quality.  If on the other hand the tenant is a new business, then you will need to satisfy yourself when it comes to business stability and long term occupancy.  When that is the case, the form of guarantee or bond that you use in the leasing arrangements will be quite important.
  5. The prevailing market conditions will have impact on market rentals, rent reviews, and lease options.  It may also be the case that a lease incentive will need to be provided to attract a tenant to the vacancy.  Assessing market conditions will therefore be critical to the leasing negotiation and finalization.
  6. Every commercial or retail property will have standards that apply to hours of trade, and terms of occupancy.  They in turn will have impact on property access, security, customer access, and operational costs.  Any property that is closely geared to higher traffic flow such as that in a retail shopping centre, will have higher property operating costs to consider and structure into the lease rental.

When you create a good lease for a property and the landlord, it strengthens the overall investment for the long term and helps the property sell if and when that is to occur.  Taking shortcuts when it comes to lease documentation will reflect badly when it comes to property performance and tenancy mix stability.

If you want more free tips for Commercial Property Agents you can get them in our Newsletter on this site.

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Commercial Real Estate Agents – Negotiation Tips for Commercial Sales and Leasing

man standing by reflection of office building in window
Top Commercial Real Estate Agents are great negotiators.

In this commercial property market, the process of property negotiation is specialised and refined.  Top commercial agents build their negotiation skills over time and know how to transact a sale or lease with a reasonable chance of positive result; even in these tougher market conditions.

In this property market, buyers and tenants are in short supply.  It is a buyer’s market and a tenants market in most locations.  When a good and qualified property enquiry comes your way, it may be the only enquiry that you get for that particular listing; the property owner should be aware that they must not hold out for some high price or rent that the market would not entertain today.  Yesterday’s prices and rents are just that; today’s property market is where things are at, and the client should be helped to understand that fact.

If you have a genuine buyer or tenant for the property, then the negotiation with your client has to be factual and supported by relevant market information.  Here are some ideas for that:

  • Current listings that are not sold and remain on market. These listings will frustrate the marketing of your clients listing.
  • Find out the prices of properties that have sold recently and where they are located.  Why did those properties sell?  Is your client’s property anything like these other properties that have sold (or rented)?
  • A summary of improvements in sold properties that make them more marketable today
  • A list of the improvements and configurations that buyers and tenants are looking for when it comes to buying or renting a new property.
  • A summation of supply and demand as it applies to commercial and retail property locally.

When it comes to starting any property negotiation it should be assumed that you will qualify the parties to ensure that they are valid and can act in this time of economic pressure.  There is no point in wasting time with people that really do not have the ability to transact.

So here are some negotiation tips that you can apply to most property transactions today:

  1. If possible get the parties to meet you in your office or territory.  Get them out of their traditional business environment.
  2. Get offers in writing at all times.  That also applies to counter offers.  Unless the parties are prepared to put something on paper, you have little of substance to work with.
  3. If you strike any hurdles in the discussion moving to an offer, ask questions and move to a deeper level of discussion on any sticking points.  In most cases the questioning process will help the other person display their fuller intentions or concerns.
  4. You can back-track in the negotiation to things that are in mutual agreement, so you have a base of agreement to work with.
  5. Seek to fully understand the other party before you open the negotiation.  Use market knowledge and facts to move the conversation forward.  It is always hard for the other party to refute evidence or established facts from the market.

So how does a ‘top negotiator’ achieve that tag or brand?  They close more deals because they practice their craft and know the market.  Does that sound like you?

Want more free tips for commercial real estate agents?  You can get them in our Newsletter on this site.

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Commercial Real Estate Team – Sales Success Rules

two business men walking and talking
Plan your commercial real estate market activities and market strategies.

When you work as an agent in commercial real estate, it pays to understand where you are going and where you have been in relation to commissions and listings.  In only that way can you tap into the better ideas and changes that will help you get more market share.

The property market is always changing, both seasonally and economically.  Planning for those seasons and changes will help you find the sections of the market that are really active (or potentially so).

Gone are the days of waiting for a call or a prospect to walk in the door of your office to seek your help.  There are far too many agents around for that to be of any benefit to you.  In this property market you must:

  • Prospect every day via the telephone (this is a critical habit in our industry)
  • Call into businesses in your area to introduce yourself and your services
  • Reconnect with old clients that you helped with other transactions over the years
  • Watch the time on market of your listings so you know when changes are required to freshen the listing
  • Track the other agents listings to see if you can help those property owners when the listings expire
  • Market every listing that you have personally into all the adjacent businesses and property investors

It should be said that you cannot advertise a property in the newspaper or internet and hope that a deal will be forthcoming.  The only listings that should get the ‘random’ service approach are the ‘open’ listings in your books.  Exclusive listings are to be given priority marketing.  When you control your market through ‘exclusive listings’, you control your progress and market share.

The industry is all about people and how we connect with them.  Rarely will you win commercial real estate business from people that have only just met you for the first time.  Relationships are the key and your ratios of meetings and calls will help you understand just where those ratios are improving or could improve.

So here are the key ratios to track in your team and for yourself as a property expert:

  1. What is the average commission that is paid per transaction?  This information will help you understand the quality factors that apply to your existing listings.  In many cases, salespeople just need to lift their listing quality to get more commission.
  2. What are your conversion rates between presentations, to listings, to converted and closed transactions?   These ratios will help you understand just how you can improve your outcomes.  You may have a weakness in presentations, or negotiations; when you find a weakness you seek to improve it through practice.
  3. How many prospecting calls must you make each day to get 2 new listings per week?
  4. Are you closing and completing at least 50% of your listings?  If not, then you have a problem and you should look at the client conditioning and your listing negotiation skills.
  5. What is the average time on market for your listings and how does that compare to the other agents and listings in the area?
  6. What is your ratio between exclusive and open listings?  You should be listing in the majority exclusively.

You may be able to add to this list, and importantly you do so to keep on top of the market trends and opportunities.  The top agents of the market understand just what is going on with local property and how to tap into it at any time.

If you want more tips for commercial real estate agents you can get them in our Newsletter.