When you work in commercial real estate, the principal focus for success is better listings and more generating enquiry. To achieve this, you have to dominate your territory and be better than the other agents in the same area. Everyone knows that, but not everyone achieves it. This is for the simple reason that they lack the focus, commitment, and persistence to the personal prospecting process.
Prospecting and cold calling are the critical components to build your levels of success and enquiry as a real estate agent. Making the telephone a major part of your daily prospecting activity is critical.
It is remarkable just how many agents do not prospect every day. After a period of time in the industry, they tend to believe that referral business is sufficient for the level of success that they require. Nothing could be further from the truth. The agent or salesperson that stops prospecting is on the slow slide to oblivion.
When prospecting and cold calling becomes a significant part of your business activity, the property market and the opportunity opens up in a major way. This is the case in any economy and at any time.
Having been a real estate agent in the commercial property industry for many years, here is the checklist that I used each and every day to talk to many people:
Street by street canvassing of five properties per day
50 calls to new prospects in the market
Follow-up calls to existing prospects and contacts
Review of the database of people relating to previous property enquiry
Approaching business leaders in the area to check on occupancy needs and lease expiries
These five things produce more genuine enquiry than anything else. Yes they require commitment and focus, but the successful salespeople in the industry are prepared to do that.
As a real estate agent myself of many years, I hear the words ‘territory domination’ used in many ways. Every experienced sales person and agent wants to dominate their territory and the competition agents in the area. So what does it mean? You can check out some of my thoughts below and also at http://www.commercial-realestate-training.com/
Here are a few things that it means to me:
Getting a greater share than anyone else in quality enquiry for property to buy or rent
Having more landlords coming to you to rent or lease their property
Having more sellers coming to you to sell their commercial real estate
Having the best quality listings in the local area on your books to sell or rent
Having no problem at all in converting new business to exclusive listings of a reasonable length of time
Attracting other agents unsold or unrented listings to you for a fresh listing
Having the best salespeople with other agents ring you up to look for a job
Every agent would like most of these facts and events in their business. So just how do you get to the pinnacle of territory domination as a real estate agent? After working with the top agencies and with some great people over the years I have set some rules or secrets to the process:
Work hard personally at prospecting each and every day in your business
Get as many quality signs into your territory as possible on good quality listings
Service your listings with great attention to detail and target market every single listing
Monitor your marketing efforts so you know what works and what doesn’t
Use the internet as a massive marketing tool and keep abreast of the changes and systems evolving from it
Send out success letters to property owners and businesses around every property you sell or lease
Concentrate on two markets of people, the business owners and leaders, and the property owners and investors. Both of them will give you significant opportunity
Set up a constant contact process of keeping in touch every 90 days with prospects so you are top of mind.
Be honest, trustworthy, knowledgeable, and skilful in your commercial real estate talents
Great salespeople create great market share. Start working on these things right now. Great salespeople take control of their own destiny.
As you promote, sell and then document the property transaction you will soon come across the fact and event of ‘due diligence’.
This element of the commercial real estate sale is very common and will be the subject of most contracts with the exception of those that adopt the auction method.
As you would expect the process of due diligence can make or break a sale. For this reason, it is wise to question a seller well in the listing stage of the sale to ensure that no ‘deal breakers’ or problems are hidden in the cupboard. Due diligence will likely find most problems on and with the property.
What is Commercial Property Due Diligence?
So what can be looked at in ‘due diligence’? Consider these:
Due Diligence is simply a detailed checking process that is undertaken prior to sale and settlement by ‘experts’, to review all relevant data involved in the sale.
Usually, solicitors and/or audit specialists are the nominated parties to undertake the work on behalf of the purchaser.
The concept of Due Diligence is that the sale and settlement of the property will only occur if the Due Diligence process is successful.
On large commercial properties, it is not unusual for Due Diligence to continue for days if not weeks. A special condition of the contract will allow this to occur.
The process is undertaken under the strict control of the Seller. It usually occurs in the Seller’s property management office or at the Sellers solicitor’s offices and is usually in a controlled environment (locked room). Only authorized parties are allowed into the room so as to preserve security and confidentiality of documentation.
A good Agent or Broker will provide total support to the Due Diligence activity. Expect Due Diligence to check just about everything involved in the sale.
The five professional areas usually covered are:-
Cover These Property Issues Plus More
Expect questioning and document discovery to include the following:-
Engineering: Includes verification that the property structures and building services comply with the Building Code of Australia and Local Government building Approvals. Questions will cover safety risks or non-compliance of structures, fire protection, air conditioning, electrical supply, hydraulics, lifts, escalators, and stand-by emergency power. Expect the questions to involve adequacy of structures, mandatory service compliance, remaining life expectancy, capital expenditure, and sinking fund requirements for future major repairs or replacements.
Environment: Includes a wide range of issues such as identification and analysis of environmental and physical risks to the property or land and its use. Issues will include site contamination, dangerous goods and hazardous substances, asbestos, hazardous industrial waste, trade waste, stormwater management, occupational health and safety, heritage factors, and statutory requirements.
Finance: Includes all actions and dealings associated with property financing, review of taxation implications, substantiation of income and expenditure statements, arranging mortgages, financial analysis and modelling, company or entity investigations, plus all other supportive or related documentation.
Legal: Includes all conveyance documentation, easements, permits, titles, contracts, leases, searches, incentives to tenants, site details, compliance with any legislative requirements, outstanding litigation, and any town planning issues.
Management: Looks at any issues associated with ongoing asset management, facilities management, building management, lease management and negotiation, rent collection, arrears, financial reporting, insurance, car-park supervision, cleaning, pest control, landscaping etc.
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