The cold calling mindset is really important in commercial real estate brokerage if you are going to get traction with reaching people and creating meetings. I have put this audio together to help the process.
The commercial or retail property management process can be time intense and quite frustrating. The observation is quite common. Most property managers will be intensely busy every day of the working week. On that basis they need to be organized to the tasks that really matter as part of providing quality professional services. Here are some tips from our Newsletter.
It is worthwhile noting that an experienced property manager will bring significant skill and opportunity to the landlords that they serve. That will be across the property in a number of ways including the specialized disciplines below:
- Rental growth
- Expenditure control
- Vacancy minimisation
- Tenant mix strategy
- Property performance
- Lease documentation
- Safety and risk management
- Property value improvement
- Renovation and refurbishment
So there are plenty of ways that the manager can bring growth and opportunity to the clients that they serve. It is just a matter of understanding the plans and the targets of the client as they relate to the future of the property in the region. It is a wise process to create a property business plan on an annual basis to manage the variables of property performance for the client.
So let’s go back to the tasks and activities of the property manager. If the correct person is chosen for the portfolio and the client, the other balances required will include the following:
- Be aware of the amount of time it takes to manage a property for a client. Some properties and clients will require significantly more work than others. If that is the case, the intense workload should be reflected in the fee. One way of calculating a fee is to consider the amount of time each week a property will require for ongoing control. Consider the factors of the tenancy mix, lease documentation, maintenance, customer involvement, vacancy issues, and rental collection. The larger the property, more intense these issues will be.
- With quality clients and properties, the reporting process can be quite specific and tedious. The factors of income, expenditure, lease management, maintenance, tenancy mix, and documentation will require special processes and established guidelines. In a large property, it is not unusual to be reporting to each of these factors on a weekly basis. That written report will support any verbal instructions given or communications made with the landlord.
- The best way to get your job and portfolio under control is to work to a daily and weekly plan. It can also be said that the end of each month will be busier with reporting requirements and property analysis. So look at the factors of work that apply to each day, each week, and each month. Split the working day into two segments. The first half a day should be devoted to documentation and reporting issues. The last half the day can be devoted to clients and tenant contact. Obviously there will be some variations and pressures that apply.
So you work in a busy segment of the market. At least 80% of your time should be under control. In that way you will preserve the quality of performance and control that your clients require in commercial and retail property management.
In this property market it pays to work with the clients that are open and honest with you. Secure those clients on an exclusive listing. You will find all types of clients in the market today. Those clients that give you an ‘open listing’ are quite likely to be more difficult to deal with; so understand the differences and pressures of the listing types.
So what is wrong with an ‘open listing’ approach? Most of the time you will see that it is influenced by other agents and brokers talking to the client; frequently a client in that type of agency relationship is ‘closed’ to the realities of the market today. They want their price and fail to accept the facts of the recent market evidence.
So what does a ‘good client’ look like? Try some of these:
- Open and honest
- Ready to act
- Understanding the current market conditions
- Are motivated to make a decision
- Will keep you fully advised of their intentions and changes
- They give you some leverage in negotiating and closing on a deal
It is a fact that clients of this nature are more likely to be secured on an ‘exclusive’ listing for a reasonable period of time. Providing you get that listing, you can really drive the marketing process at a personal level. Exclusivity helps you believe in the listing and marketing process. You can then easily see the results at the end of the marketing ‘tunnel.’
It is worth noting that prospects and clients will come to you in a couple of ways. Some will feed to you through the office or brokerage leads. Others will respond to your prospecting activities. Lastly and most importantly many more good clients will convert to you by ongoing contact and relationship building. They are the ones that will likely be the ones to give quality to your market share and new business. For this reason your database and prospecting model is really important.
When you serve a top client well, it will ‘open the door’ on referral and repeat business. Look at those clients that you have helped over the years. Have you placed them into a ‘VIP’ process of contact in your database? Have you differentiated them from the general contacts and people that you have in your pipeline?
So the message here is quite clear. Focus on creating great client relationships that encourage ‘exclusive’ listings. Over time that will give you traction in building your market share with quality listings.
You can get more tips for commercial real estate brokers in our Newsletter right here.
The marketing process for commercial real estate brokers today has become very special. The online marketing process at a personal level is more important than ever before.
I have put this chart together to help commercial brokers and agents connect with their market on a professional business level.
It doesn’t matter if you are in sales, leasing, or property management, the same promotional and marketing rules apply.
You can get the free wall chart right here.
Any opportunity in commercial real estate today should be acted on quickly and effectively. If you ‘sleep overnight’ on the issue you will likely find that is not going to be there in the morning. There are many competing agents and brokers waiting to jump on the listing opportunities around you.
Here are some important rules to understand:
- Real estate today is becoming a global business that is traded on any day of the week at any time. You must be prepared to talk to a client or prospect on the telephone when he rings.
- The marketing process for commercial property has become timeless. Internet listings promote properties globally and across the country. Be prepared to take the enquiry when it occurs. Carry some standard forms as part of capturing inbound enquiry. Also carry a full set of current property listings ready to take the questions and inspections at short notice.
- Quality listings and good properties will create significant enquiry in any market. When you take a quality listing to the market today, be prepared to respond to the enquiries as they occur. A quality listing will create a significant amount of calls, and as a consequence, a good number of inspections. Time can be a precious commodity when you have a few high quality listings on the market are the same time. That being said, you still need to take the required actions and capture the enquiries effectively and efficiently.
- If the person wants to see you later in the evening or over the weekend as part of progressing to the next stage of a property enquiry, then create the meeting and let it occur. Far too many brokers are selective when it comes to critical meetings and property inspections. Certainly you should qualify the prospect before you arrange a time to meet, but be prepared to work the longer hours and over the weekend. A career in commercial sales is totally different to a standard 9 to 5 job. The rewards are many; however you do need to work hard.
- Every property inspection is an opportunity to get information. The person you are showing the property to may not necessarily move to the next stage of offer; however you will get valuable market intelligence from the connection. Ask the questions, and put that information into your database.
- In every property inspection, build a degree of urgency to encourage the buyer to move to the next stage. Local property knowledge about competing listings, prices, and time on market will help you with the urgency factor. Understand the other listings that are available and the differences that exist between those listings and your property. I go back to the point that a quality listing will always encourage and create a good number of inbound enquiries. Be prepared to work on those leads and opportunities as they occur.
From these points, it is easy to see that a commercial real estate agent or broker should be focused and diligent. A lead or an opportunity today needs to be actioned as soon as possible. In that way you will grow your market share quickly and beat the competition.
You can get more tips like this for commercial real estate brokers in our newsletter.
In commercial real estate prospecting some people will want to do business with you and others will avoid any real connection. You will get the feeling that some people really do not care for a connection or information. Look for the ‘signs’, and understand what is going on (or not going on).
You can spend far too much time in chasing people that are ‘not interested’. Whilst it is great to have a good degree of professional persistence in prospecting, the fact of the matter is that you must protect your time. If someone is not receptive to your genuine approaches and communication you should remove them from your contact process and simple move on to talking to others.
In any town or city, there are plenty of people to talk to. Momentum is really important when it comes to growing your market share and your contact database. In most towns or cities you will have several thousand business owners and property investors to talk to. Finding them remains the challenge; however diligence will get you there over time.
Here are some guidelines to help you with a system for prospect and client communication:
- Set some daily prospecting goals that you can relate to and believe in. That will usually involve a mixture of outbound calls, personal meetings, and property inspections. From that contact process you will find the people that really want to talk to you and build a relationship.
- If you are at the beginning of your career and prospecting activity, start with some achievable numbers so that you can grow your momentum easily and effectively. Ultimately you should be prospecting for 3 hours every day. In that time you should be making 40 to 50 outbound calls. That can be a daunting target for many people. If you are at the early stages of your professional career and prospecting is a developing habit, then make 15 outbound calls every day until that becomes an achievable habit and target. From that point onwards, you can grow the numbers at five extra calls per day to reach the level of 50 calls. When you reach the level of 40 to 50 outbound calls, your prospecting time will be saturated with activity and meeting opportunities. At that level you can sustain reasonable activity and attract new business. From 40 or so calls you should be able to connect with 15 people. From that connection you should get 2 meetings per day. That is how you build your prospect list.
- Practice your dialogue so that you can improve your connections and conversations progressively. In approaching a new person for the first time, the conversations should be based on trust and information. There is no point in pitching your professional services or pushing for a listing opportunity over the telephone; that can occur when you meet with the person and truly understand their needs in property today. Help the person trust you by providing valuable market intelligence and genuine property solutions.
So the key message here is for you to establish a contact and prospecting cycle based on trust; understand the necessity for filtering out the people that will not do business with you over the long term. Read the signs in any conversation, and avoid time wasting people. When you look at your sales territory and property speciality, there are likely to be many more people for you to research and connect with.
You can get more tips like these in our Newsletter right here.
In commercial real estate brokerage it is not unusual for agents to struggle or have a slump in business from time to time. The matter is resolved when they focus back on building market share and client base.
So why does a ‘slump’ in business happen? Whilst the market may change and the tenants or buyers could be slower to respond to a deal opportunity, everything comes back to the volume and quality of listings held by the broker. A good quality listing that has been correctly marketed will sell or lease most of the time.
So how can a broker or agent get out of a ‘slump’ in commissions and listings? Try some of these:
- Simplify the day so more of the correct things get done. It is a sad fact that diversions occur each day and far too many brokers let those diversions take over. Focus on the things that must be done; understand the importance of those things in business generation at a personal level. An agent that is struggling is usually well ‘off the rails’ when it comes to important business tasks.
- We are the products of our habits. Only our habits will help change the market and our commissions. Start a new habit per week and develop it to a high level. Focus on the key things that mean a lot to building market share. The question will then be what are the most important habits to develop? In most cases they are a mixture of the following; prospecting, presenting, inspecting, and negotiating. Take one of these habits per week at take deliberate steps to improve the process. When you have got the new skill underway, move on to the next one. I go back to the point that ‘habits’ are really important in our industry.
- Track your progress each day in the things that mean something to where you are headed as a broker and agent. In tracking the numbers you can improve your results in the things that matter. What would I track? Try these; cold calls, meetings, presentations, listings, inspections, and closed deals.
We must control the working day. We have work choices throughout the day and the choices that we make will build our market share or destroy it.
If someone wants a slice of your time and asks for an appointment, understand that only the most important people get time with you. Unimportant issues can wait to later in the day when the key issues in your business plan have been done.
You can get more tips like this at our main website right here.