In commercial real estate agency, the presentation or sales pitch will be critical to your listing conversions. In most of the presentations we do today are highly competitive. Three or four agents will be chasing the same listing and on that basis will be seeking to influence the client through incentives and enticements. You must have a strategy of relevance for the client to listen to you.
This then says that your sales pitch or presentation has to be of the highest quality when it comes to selling or leasing commercial property. In this property market, there is no point in being ordinary when it comes to presenting your services to the client.
Everything in your proposal and presentation should be of the highest quality and focus on the outcomes the client seeks. It is of interest to note that many agents will pitch for the listing without understanding the full factors of the client and the property. Complacency like this will lose the listing.
Here are some other ideas that you can apply to your presentation strategy.
Seek to understand the client first before you design your package of recommendations. Your client will have certain requirements as to price, rental, timing, and confidentiality. All of these factors can be identified through a comprehensive meeting with the client when preparing for the presentation.
Arrange to meet the client on site so you can both go through the property together. This gives you a significant opportunity to ask questions about the history of the property, how the client came to acquire the property, and how they see the property today. In a minor way, this is the start of your presentation. You can show the client how relevant you are to the type of property and the local area. You can also show your experience as it applies to the challenge that the client faces.
Client expectations should be identified. That will include the trends of the current market and where the client sees their property moving and at what price or rental. If the client has inflated expectations, you will need market evidence to help them understand the prevailing market conditions. Facts and figures, together with photographs will help with this process. Carry a selection of comparative properties in your marketing folder for this very purpose.
After the initial meeting with the client on site, ask for a period of 24 hours where you can prepare the final proposal and investigate the fuller market conditions. This then means that you will have another meeting with the client as part of a formal presentation. At that meeting you will be completely prepared with all the strategies and evidence that you require. If possible, have the presentation in your office boardroom. This allows you to control the environment and the distractions that could apply during your presentation.
The marketing processes that we apply to property listings today are quite unique and special. The days of generic marketing are well gone. Provide a marketing campaign to the client and their property that comprehensively taps into the defined target market. Explain to the client how you will reach the potential buyers or tenants that are required to get the best price or rental. Put yourself personally into the marketing equation so the client knows what you will do to promote the property individually in addition to any broad based marketing approach. That being said, you should expect an exclusive listing for the hard work that you are going to provide.
Choose the best method of sale or lease that applies to the property type and the client. The choice should be influenced by the competing properties in the same location. Don’t repeat the mistakes of other property owners and other agents with listings that have been on the market for a long time. Tell the client exactly why you are making your recommendations today.
One of the most significant tools that you can use in a sales pitch or presentation is that of a relevant story. The client likes to hear about other situations and circumstances that have been successfully handled; they will remember your stories more than your recommendations. Choose your best stories that illustrate the road ahead for the client. In some cases they will base their decisions on the relevant stories and experiences that you can share.
Summarize to the client the four or five factors that will drive enquiry to the listing. Those factors should be aligned to the target market and also be prominent in the marketing material. Show the client some examples of quality advertising and marketing strategies that will be applied to the listing. Give them some choices regards marketing costs and marketing solutions.
Seek an exclusive listing with vendor paid marketing funds. In this market, it is the only way to promote a property comprehensively and correctly. There are no short cuts when it comes to spreading the message regards a good property.
It is possible that you can add to this list. Importantly every presentation that you prepare for should be optimized for the client and the property. In this way you will be the relevant agent of choice to solve the client’s property discomfort.
It is a fact that the way you think when you are prospecting will impact the results that you get. This then carries through to the prospecting that you make in commercial real estate.
Has someone told you that you need to prospect and they have given you little facts on how to do it? Perhaps they have told you to get out of the office and start doing something to build your market, yet the facts behind the process seems to be a bit lacking?
It is a very common issue that many salespeople do not know how to prospect at all very well. They simply know that they must lift the telephone and talk to prospects and more new people to see if there is a problem that they can solve.
To help the process here are some rules to help you get better results in commercial real estate prospecting.
It is extremely important to start a contact and prospecting system that you can work to every day at the same time. As part of that process you will need a few tools to use and stick to such as a database or spread sheet to record your contacts.
Track your numbers of outbound calls to meetings arranged. Out of 40 or so calls, you should be establishing 2 or 3 meetings with people that you have not spoken to before. It should also be said that you will not reach 40 people in all those calls; you will be lucky to reach 20. Those that you cannot reach today can go into the system for call contact later.
Protecting your thinking in call contact is very important; many people will decline your offer or your request for a meeting. Over time your conversions to meetings will rise, however it is the first 3 weeks of making the calls where your thinking processes need to be protected. Read some good books on making calls so you understand the importance of the mindset and thinking process in commercial real estate.
Having a reason for the call will help your conversation. If you do not know the person, the best approach is to see if they have a need or an interest in commercial real estate of any type. It is a question that can lead into a telephone conversation. As the local real estate agent, you can keep them updated with market trends and property changes in the local area.
I have coached many salespeople through the barriers of making cold calls. Just about all of those barriers I have noticed are self-inflicted and self-generated with most salespeople. Change your thinking and you will open more doors faster with the people that need your services. Making cold calls professionally will fast track your career in commercial real estate today.
Many commercial real estate agents have a question as to exactly what the right commission should be when it comes to selling or leasing a commercial property. In most cases, the choice is yours, and should be based on the work required in the listing, together with the trends of the local property market.
Competitive pressures will always push commissions and fees lower. It may be that you have acceptable line in the sand drawn when it comes to fee calculation. In most cases you should have some leverage in your fee base. It is generally acceptable to move up or down 0.25 per cent as required.
There is no point taking on a listing if you are going to lose money. Given that time is money, a low fee will drive less interest from both your agency and yourself.
Here are some rules that I set regards fees and commissions.
Look at the fees that the other agents are charging through the local area. You can only compare agents to agents based on experience and relevance to the property type. A top agent will always command a good fee. A poor quality agency will always seek to reduce fee to attract the listing. The fact of the matter is that these poor quality agencies cannot service a high quality property with the required marketing and industry knowledge. The client will always get what they are willing to pay for.
Don’t focus on reducing your fees. Focus on unique and specialized marketing campaigns that produce more relevant enquiry. The client wants to move their property more than they may want a reduced fee. Focus on your points of difference and relevance to the client.
Show the client how other properties in the local area are struggling with some of the competing real estate agencies. Tell the client what those other agencies are doing wrong, then tell the client how you can improve on their efforts. Property marketing is not an experiment. It is a very specialised process for which your commission and marketing fees allow you to provide a very specialised service. It is more important for you to be known as the top local agent locally, than the cheapest.
As a general rule, all of your listings should be on an exclusive listing basis. In this way you can control your market place, client contact, and negotiations. Every exclusive listing should be supported by vendor paid marketing funds. Those funds should be paid in advance prior to the campaign commencing.
In the property market today, there is generally a good selection of properties for sale and for lease. Many agents are struggling to get results were some of the listings. Many of those listings are on an open basis. The media by you can see the problem and the solution that is required. This market requires dedicated effort on the part of the agent, and that will only be achieved by an exclusive agency for a long period of time.
Pitching and presenting for a listing should therefore involve a very specific process of information, knowledge, and marketing strategies. Refine your presentational system so that the exclusive listings become easier to achieve. Practice will get you there faster.
When you grab the attention of the property investors and tenants in the local commercial property market, you can rise to the status of a top agent locally. In this way you can attract more listings and clients. Every agent wants to do this; but you need a plan to get there.
It is not overly easy to rise to the top of the industry. It takes real effort from you personally and the establishment of your own marketing plan that you can stick to. Each and every day you follow the steps in your plan.
Here are some ideas to help you get started:
Signboards throughout the local area will be very important. Most of the deals that we do in sales and leasing are done with people from the local area. The signboard will help you get the message across the region of just who you are and what you have available by way of quality listings.
Direct marketing around every listing will be critical. Every listing is a great opportunity for you to talk to other business owners and investors in the area.
Success letters and flyers should go out into the local area from each successful marketing and listing campaign. Sell your successes into the region.
Prospecting requirements will always exist. They do not go away. Get on the telephone to make cold calls every day, and also visit people in your territory. Personal contact is really important.
Top marketing systems and campaigns will strengthen your profile as an agent to be watched. If you market a listing in an effective and special way, the people in the market place will notice you. That’s what you want.
The best listings will produce more enquiry than ordinary ones. Get the best listings on your books and market them comprehensively. Be known as the agent with the best properties to sell or lease.
Conversions of listings to sales or leases will be a factor of importance. You can have a lot of listings, but if they are not moving, then you have some more work to do. Promote each exclusive listing in a comprehensive and positive way.
Editorials for each good property should be encouraged where the media will cooperate with you. The fact of the matter is that the traditional newspaper media is fast becoming redundant in property promotion, however they do like to boost readership and a quality local property will help them do that.
Internet based marketing, Blogs, and Social media, are all parts of the more mainstream marketing effort in commercial and retail property today. Make sure that you have everything under control.
Today you must market yourself as well as your properties. When you get the balance right, it is much easier to rise to the top of the local property market as the agent of choice.
Commercial property management is a challenging part of the property business if you are going to do it properly. Complex properties require good managers that understand the property type and just how to keep things under control
It is hard to take up a position in looking after some properties without a qualified and experienced person to help you. Whilst the theory of property management can be studied, the practical experience will always help you greatly and fast track your learning curve. There are significant differences in the management style between industrial, office, and retail property.
Here are some of the things that are central to your job:
Watching the trends of the market with focus on market rentals, vacancies, competing properties, supply and demand for premises, and new developments.
Income and expenditure performance for properties in your area. Knowing the industry averages will help you a lot in keeping things under control. It should also be said that some properties will perform differently based on their property type and location. That is why specialisation is relevant in property management.
When it comes to properties of medium to larger size, the establishment of a budget relating to income and expenditure is quite normal. The budget can only be set with due regard to property history, location, and other properties of similar type. Getting to know the competing properties and other property managers will help you in establishment of the budget for your managed assets.
The current tenancy mix and the vacancy profile for the property will have direct impact on the income stream. That is why the market rentals, current lease profiles, and expected vacancies need to be carefully managed. Many managers will do their own leasing as part of the property management services. That should normally be the case however there should also be a separate fee for completed and successful negotiated leases. There will also be differences in leasing fees as it applies to leases of different types and different terms.
Many property owners will have specific needs when it comes to cash flow. They will need to service financial obligations to the mortgagee, as well as payment of expected outgoings to run the property. That is why your experience and control become part of the property management service. The manager should understand exactly what’s happening in the property today and how the expenses are going to change cash flow over the forthcoming period.
A good manager will bring stability to an Investment Property. Stability then allows the property to be improved over time to the plans and the priorities of the landlord. It should also be said that a reasonable fee should be charged for commercial or retail property management services. There are no short cuts when it comes to quality in this industry, hence a suitable fee should be paid for professional commercial and retail property management services.