Commercial real estate brokerage can be a highly profitable industry to work within. In saying that, it can also be a difficult industry if the right people and processes are not applied correctly as part of a plan and targets process.
There are some rules skills to develop across sales, leasing, and property management. There are some real knowledge challenges to address and resolve with office property, industrial property, and retail shopping centres.
Here below are some ideas from our eCourse Snapshot.
What are your targets?
The message here is that you can and should develop some real targets in your business to define and improve the outcomes of your commercial real estate brokerage. It really doesn’t matter if you are part of a large team, or if you operate individually. Here are some valuable targets to work towards:
- Commissions written per transaction
- Listings generated within a defined area
- Exclusive listings vs. open listings
- Signboard presence within a defined territory
- Referral business created from every successful transaction
- Repeat business from existing clients
Everything in commercial real estate today comes back to results and activities. The right activities will always produce momentum, and the best activities can then be tuned over time to achieve some real momentum in listings, clients, and commissions.
Understand your local commercial property industry
Nothing remains the same in our industry, and the activities that you undertake each year should be shaped and changed based on current market activity and trends. In other words, every broker and agent should be tracking personal efforts and property indicators.
Through a simple set of key performance indicators every broker and agent can monitor their activities across prospecting, listing, time on market, and deal conversions. A focus on quality listings and better clients will always help boost enquiry levels; database growth can be part of that process. A good quality listing will always encourage the players within the local property market to display their hand and connect with you.
When an agent or broker is struggling in the property market it is usually because they have not focused on the best listings locally. They are also avoiding the importance of exclusivity in listing conversion. You cannot dominate the property market without exclusivity. You must control the quality listing stock and the clients that you work with. Those simple rules need to be remembered at all times.
Identify the strengths and weaknesses in your property market, and then adjust your business efforts accordingly. Improve your skills were required, and start talking to the property owners locally. You must control your listing stock and your clients.
Where are the opportunities?
Look for the opportunities and look for the weaknesses in your local area. Understand what’s happening when it comes to property investment, occupancy, and business sentiment. Consider the following questions:
- What segments of the market are showing the most enquiries?
- What are the tenants and the buyers looking for when it comes to property occupancy or purchase?
- What is the supply of property today and how is that being impacted by current and future demand?
- How are prices and rents trending in today’s terms?
- Are there any threats on the horizon when it comes to commercial real estate in your town or city?
So there are some valuable questions to consider here as you establish your commercial real estate business. Undertake a regular assessment of market conditions and relate those market conditions to your personal skills.
Practice and improve your processes at every opportunity. Soon the commercial real estate precinct in which you operate will start to present opportunities that other agents and brokers have overlooked.