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List Effective of Communication Strategies in Commercial Real Estate Brokerage

commercial property agent meeting clients

The best agents in commercial real estate know how to communicate effectively and control their transactions from start to finish.  They do not lose control of the deal momentum.  They stay with their listings and negotiation positions to the very end.  Those focus points are quite important.

 

Things will change, and momentum will shift in any sale or lease, so expect that.  Understanding the momentum of the parties and their negotiation targets will help you effectively convert and control the transaction.  Set your rules to all the communication processes across listings, inspections, and negotiations.

 

 

Comprehensive Communication with Listing Control

 

Stay with the transaction and the involved people from the very beginning.

 

Here are some ideas to help with that transaction control:

 

  1. Know who your client is in the transaction, and don’t lose that awareness as the elements of the deal move and change. The client is the person that needs your help and will be the one that is paying the commission at the point of success.
  2. Make sure your appointment to act in the sale or property transaction is accurately compiled and legally correct. You don’t want any disagreements about commission at a later time.
  3. Get full property detail and title ownership correctly compiled for the transaction and the negotiations that may follow. Be prepared for questions and negotiation elements between the parties.
  4. Follow the client’s instructions to completion. Keep the client fully briefed as matters shift and change.  Information helps with negotiations.
  5. Take plenty of notes as the transaction evolves. Most property negotiations are complex, and the elements of offers, discussions, and agreements will vary.  Your notes are critical to transaction control.  Every meeting, telephone discussion, or direct instruction should be documented.
  6. If you need some ‘market awareness’ to help shape the thoughts of your client or the negotiating party, then gather plenty of comparable evidence from other local properties and transactions. That evidence should be statistical and visual, as well as verbal.  Verbal comments alone don’t count much when it comes to client or prospect conditioning.  Help your client or the other party to the transaction understand the elements of the local property market and recent prices or rents.
  7. Most parties to a property sale or lease want to get some ‘saving’ as a final element of ‘closure’ on a negotiation. What is the best alternative to no agreement for each of the parties?  They will be ‘holding out’ for their position and advantages, and somewhere in those facts will be a potential agreement.  Know the negotiation ‘variables’ for each party and then position the negotiation around them.
  8. Personal marketing for a top agent is a required process. It covers promotions and engagement across some different channels.  A top agent will be using all available marketing elements to build their business.  That will, for example, be websites, editorials, articles, social media, databases, telephone calls, and meetings.  That is how they can build a solid marketing profile as an industry expert.  The process of personal marketing never stops for a top agent.  Get involved in promoting yourself and your skills locally.  Engage with your target market.
  9. When the final transaction documentation takes shape, understand the facts and capture the elements of the deal. Know how all matters should be documented; do so with accuracy and timeliness.  All documentation should be served and prepared with full regard to local property laws and the instructions of the client.

 

With these things, you can control a property transaction most effectively from start to finish.

 

Communicate through your listing and property transactions with accuracy and timeliness.  That will help in creating ‘closure’.   Commissions are then easier to convert. That is how top agents do things.

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Podcast 186 for Commercial Real Estate Agents and Brokers

audio sound mixer and headphones
Tips and ideas for commercial real estate agents

Its the middle of the year and we all have plenty of things to do over the coming 5 months to the end of 2014.  Part of this podcast focuses on Goals and Targets; I hope you have been tracking your targets for this year.  Now would be a good time to assess the way in which you can get more results towards the end of the year.

In this audio file I am also covering leasing issues being ‘construction plans and drawings’, as well as how you can qualify and lease to more tenants in this market.

Thanks for being part of this online community.  I hope the audio is of use in giving you ideas and momentum.

Till next time, good hunting!  🙂

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Develop an Action Plan for Commercial Real Estate Prospecting

city buildings at sunrise

When you create an action plan for prospecting in commercial real estate brokerage, you have something to work with that can help you find the right clients and listings.  Most prospecting plans require modification and refinement given that most property markets will change throughout the year.  The important issue here is that you also change your approach accordingly, and keep new contacts and prospects flowing into your database.

So you need an action plan.  That plan is something that you can do every day to reach new people to talk to and connect with.  Have you got one of those plans now?  If not this will help you get started:

  1. Understand that you are the person to drive the prospecting plan and all the stages of it.  Diligence to the process is required.  You can’t take a day off or ‘cheat’ on the tasks required.  When you define the actions to take, they simply have to be done.
  2. Define your territory to focus on.  That will be ‘geographically’ so that you can concentrate on the streets, property owners, quality properties, and listings in a logical way.  Split up the area into segments to be covered and worked.  Ideally that will be in segments of 100 properties.
  3. Understand your property speciality in all respects.  Most of the clients that you work with require an agent that is really experienced in the property type and the market; the client must see that you are the ‘real deal’ when it comes to understanding the property and what to do with it.
  4. List high quality properties as a preference.  On that basis be selective in what you list and why you do it.  It is a fact that any quality property will create better levels of inbound enquiry.  In that way you can create more inspections and create leverage in negotiations.
  5. Letters should be sent to property owners locally and the required follow up calls should be done.  Don’t send letters and hope that the prospect or property owner will call you back; it is highly likely that they will not.  You are the key to getting momentum from your prospecting letters.  Only send out the required number that you can follow up in calls.  A good number to start with is 5 letters per day.
  6. Each day call at least 25 business people, tenants, property owners and any others that may have an interest in commercial real estate today or in the future.  Ask the questions to see what they are doing now with property.  Qualify them before you seek a meeting.
  7. Conversations are the secret to finding the leads and the opportunities that you require.  Talk to lots of people every day and leave your business card with all the people you speak to.  You really do not need much in the way of other marketing material.  Your business card is the key to the process.
  8. Other listings, sales, and leasing should be watched for action and opportunity.  Monitor your competitors and the factors of time on market.
  9. Track your momentum with a good database.  People of substance and relevance to commercial property should be spoken to frequently, and a database will help you do that correctly and specifically.

Your prospecting plan doesn’t need to be complex, but it does need to be done.  It’s not something that you can delegate.  Personal action is required.  The processes that you create can take you to the top of the commercial real estate market much faster.

You can get more tips like this in our newsletter right here.

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Do You Look Like a Packhorse When You Pitch in Commercial Real Estate Agency?

man carrying briefcase
Don’t carry too much marketing material to your sales pitch.

In commercial real estate agency your sales presentation or pitch should be simple and direct.  In saying that I still see so many agents front up to the client’s office for the presentation looking like a ‘pack-horse’ with every conceivable marketing tool imaginable.  What a big mistake!

Here are a few tips from our main commercial real estate training website ……

First impressions mean a lot in our industry.  As you enter the client’s office or work environment, the message you send must be simple and professional; you must look the part in every respect.  How you dress, what you say, and what you do in the first 2 minutes of the meeting will impact the remainder of the client connection.

Your sales pitch or presentation has to be simple.  The client has to grasp what you are talking about and see some clear and relevant solutions to their property challenge.  When you complicate things, you lose the clients attention.

Top commercial real estate agents know how to be relevant and real for the current property market.  They prepare the right information that connects to the current market conditions, the property, and solutions available to the client. 

The agent that wins the listing is usually the one that has fully prepared for the meeting with high level content and facts about the market.  They also offer specific strategies that go beyond the ‘generic rubbish’ that ordinary inexperienced agents provide.

Here are some ways to connect with the client in a professional sales pitch or presentation today:

  1. Ensure that you have seen the property before the meeting so you can relate to it in many different ways.
  2. Check out the other competing properties on the market nearby.  Be prepared to talk about them and how they are being marketed (successfully or unsuccessfully).
  3. The only tools you need for a presentation will be your marketing folder, and perhaps a laptop computer.
  4. In your marketing folder have listing forms, samples of marketing, maps of the area, subject property details (searched and checked), Gantt charts of sales and leasing processes, testimonials, and market research information.
  5. In your laptop (or tablet computer) have plenty of photographs of the property so you can run a slide show as part of the client connection.
  6. Have a brief marketing proposal ready with recommendations as part of taking the subject property to the right target market.
  7. Get away from long and tedious proposals for the client to read.  Use dot points, checklists, graphs, and photographs in the proposal.  That will help capture the client’s attention.
  8. Ensure that you have a few good stories to tell about some other property owners locally that have gone through the same pressures as the client you are talking to.  Stories always help the connection and will be appreciated by the client in the presentation.  Good stories will be remembered.

Simplify your strategies when it comes to meeting new potential clients. Take less information and clutter with you, but make sure that the things that you do have are of the highest and most relevant quality.  Practice your pitch beforehand.  Show the confidence that the client wants to see in the listing process.

Join our Newsletter at our commercial real estate training website and get more free tips for agents.

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Direct Mail Strategies for Commercial Real Estate Agents

commercial real estate agent climbing ladder
Direct mail systems and strategies will help you rise to the top of the market as a commercial real estate agent.

In this time of technology and e-mail, the traditional letter is even more effective and powerful as a marketing tool.  Far too many commercial agents rely solely or largely on e-mail as part of their marketing effort.  Develop a direct mail strategy to add to any other marketing activities that you currently undertake.

In saying all of this, the direct mail process should only occur if you are prepared to follow-up each and every letter sent.  When it comes to commercial property, most of the new business we create is through trust and personal contact.  For this reason the letters that you send should be focused on two things.  They are:

  • To introduce yourself as a local commercial real estate expert of relevance to the prospect.
  • To seek a meeting with the prospect and provide them with local market information and knowledge.

If you send a letter on this basis, you are not confusing the marketing message and you are simply introducing yourself.  This makes the telephone follow-up process quite easy and specific.

Here are some specific tips to apply to the direct mail strategy and letters sent today.

  1. The letter that you send should be simple in format.  Three or four simple paragraphs are sufficient to send right the message and request a meeting.  Keep the letters simple in every respect.  You want the person to take your call when you make it in a few days’ time.  The letter is really encouraging them to take your call.  When you make the call, you are then encouraging them to a allow you to meet with them.  Keep things simple and centered on these basic processes.
  2. The only thing that you should include in your letter should be a business card.  Far too many agents send bulky marketing material and brochures.  Most of that will be put in the rubbish bin fairly quickly.  If you send only a business card, that is likely to stay within the possession of the client for some time.  That is exactly the goal of your letter.
  3. Break your letter up into three simple paragraphs of two or three sentences each.  Tell the client about the local property market and recent changes that may be of interest to them.  Tell the client that you will be ringing them in the next few days to talk about those facts.  The primary goal of your letter is for the client to take your call.  When you make that call, you want them to remember you.  That is why the business card mentioned earlier is part of the contact strategy.
  4. When you sign off the letter, do it personally in blue ink.  That will then show the prospect that you have personally committed to the dispatch of the letter.  If your standard letter signature is somewhat illegible, it is better to develop a legible signing process for your marketing letters.  That will then show the client that you have taken time to identify yourself formally and correctly at the base of the correspondence.  You have a name; make sure the client can read it.

The traditional direct mail strategy is of importance and significance when it comes to marketing yourself today.  Make sure you follow the above points so that your correspondence can be converted to the meeting that you require.

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Commercial Real Estate Agents – How to Resurrect Old Unsold Listings

office building front door
Look at the commercial property for sale and see what you can change in marketing and repositioning.

Some commercial property owners start their property marketing campaign with a high price and a poor quality agent.  Some of those clients can also have tried to market their property themselves before the talk to an agent.  Either way they suffer lost time and little enquiry.

How many of those clients will tell you that their property did not sell because of the agent?  Most of the clients you talk to in this situation will believe that their unsold property is the result of the agent inaction, and not the high price or poor marketing effort.

The fact of the matter is that an overpriced listing will ‘kill’ its own enquiry before any enquiry is forthcoming.  The listing quickly becomes ‘stale’ very fast. If you take on one of these listings, you will need to have a plan to ‘resurrect’ the marketing momentum.

When it comes to property marketing today, ‘hope’ does not feature as a good tool or strategy.  Any marketing campaign based on ‘hope’ will go nowhere and the client should be made aware of that.

So how can you ‘resurrect’ these mistakes in marketing?   Here are a few ideas to help you.

  1. Take the property off the market for at least 4 weeks.  That means nothing should be advertised anywhere about the property.  You can then work on new marketing points and promotional strategies for the client.  When the property is advertised again it has to be done differently.  If you want to market the property inside the first 4 weeks, then do it personally in ‘one on one’ contact.
  2. Get an exclusive listing for the new marketing effort.  That exclusive listing should be for at least 4 months.  It will take you that long to create fresh interest in the property.
  3. Vendor paid marketing should be the rule when you revitalise the listing.  Create a specialised campaign using the marketing tools that you believe are the best for the property as you see it today.
  4. Assess the results that have come in from previous marketing efforts.  What worked and what did not work?  Understand those facts so you can avoid making similar errors again.
  5. What target market was used in the last marketing effort?  Was it relevant and did the property really connect with the target audience?
  6. Go through the property today and check out the improvements that are advantages in your marketing.  How can you reposition those improvements to get better enquiry?  How will they feature in the marketing effort?
  7. Check out the words that the internet search engines are seeing as common search terms for commercial or retail property in your area today.  Incorporate those terminologies into your new marketing activities.
  8. Get professional photographs taken of the property so any advertisements can appear fresh and revitalised.
  9. Have a serious discussion with the property owner about the previous price and factors that may have held the listing back from getting the required enquiry previously.  You will need to get a price adjustment before you go back to advertising the property again.
  10. Give the client a time line of strategies that will start on a particular date and adjust weekly until the property is sold.  Show them how things will progress with you and your marketing efforts.  Get them to commit to your recommendations.

Old listings can be resurrected.  It just comes down to the strategy that you adopt and how you condition the client.  Don’t let them repeat their earlier mistakes.  Be specific and drive the listing forward.

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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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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.