Some listings in commercial real estate are quite slow to attract enquiry and move to the next level of an offer or negotiation. That is where our creative professionalism is so important for the clients that we serve.
Sometimes, you will find that the listing will stay on the listing books for too long. In such situations, it is necessary to try for a listing extension. Your skills in client communication at that time will be fully tested as you ask for more time. The client must believe that you are still the right person to continue to work on the property and handle the challenges that it or the property market presents. Are you the best agent to stay on the listing for the future?
Time on Market Problems?
Why will a property take longer to sell? Try some of these for starters:
The property market is slow to respond due to economic circumstances in the region or the business community
Enquiry is low for the property type or location
It could be the wrong time of year to market the property
The price range for the property is too high or it is out of the range of most buyers
There are too many other properties on the market currently and those properties are not moving.
The target market for the property is too narrow or wrong for the listing
Not enough marketing was done at the time of initial promotion
Too many new properties are coming into the market creating a situation of oversupply
The business community is moving from a purchase priority to a lease priority
There are plenty of reasons for listing ‘stagnation’. You may also have other local issues that are also evident in your location, and those that you believe are fundamental reasons for the slower listing enquiry. Either way, you must know the reasons behind a ‘stale listing’ and its failure to attract local property enquiry. Strategy then takes over; that’s your job.
Ask for an adjustment to the method of sale or pricing if you believe that change will attract more enquiry.
Change the method of sale to suit the preferred target market.
From these issues you can create a timeline of changes for the client to see and consider. The clearer that you can be in this communication with the client will help you in winning a listing extension.
The commercial real estate leasing process is quite special. You can work with tenants or landlords, but either way you will need some local area information and the tools to help you through any property inspection and negotiation.
In commercial real estate today, your contact system is critical to the results that you seek with listings, clients, and commissions. The property market will change throughout the year and your database list is the one consistent process that can take you across and into all types of properties and opportunities. NB – you can get plenty of client contact ideas here in Snapshot – its free)
There are plenty of ways to establish and run a contact management system in commercial real estate brokerage. Similarly, there are plenty of software programs to support the client list process. Whilst you can always choose a good and well proven CRM package to support your contact processes, everything still comes down to personal momentum and commitment as part of a prospecting model.
Growing your business?
If you are looking to build your real estate business, seriously consider your database activities and your prospecting model. Establish a system that works for you comprehensively and consistently across the location and your targeted groups of clients or prospects.
Understand who your clients are by type and by location. Understand the targeted properties that you should be working on overtime. Define your territory and your priority buildings. From that point on, your prospecting model can take shape and the database can grow effectively and directly.
In this audio, I share my thoughts about contact management and list creation. Grow your list of clients and prospects and put more ‘logic’ into the process.
Commercial real estate leasing is quite special in a number of ways. There are pressures to work through with tenants and landlords. In this audio program by John Highman, you can learn how to optimise the leasing process for better results. (NB – you can get plenty of leasing ideas in Commercial Snapshot right here – its free).
John talks about the property leasing market today and what needs to be done to convert better enquiries from tenants. There are some other ideas in the audio program about listing, marketing, and negotiating.
So many brokers and agents struggle with or fail to establish a new businesss prospecting model for themselves. That single fact then frustrates the progress of the brokerage with listings and commissions.
To get some traction in real estate prospecting and new business, there are some skills to be learned and implemented. There is a ‘fast track’ to the process that every person can persue. It is a bit like learning how to drive a car; you learn the basics, then you start practicing. Over a few weeks and months, the skills are refined and better results occur.
What are the real estate facts?
After some 35 plus years in the industry, I can safely say that I am always learning in so many different ways; skills can be refined. Any broker and agent can improve their professional approach to the industry.
Clients and properties set new boundaries and requirements that ‘push the boundaries’ on real estate skills and marketing. Nothing is ordinary. The internet is also shifting the focus on some property types such as ‘shopping centers’ and ‘retail shops’.
Setting prospecting skills in place
Having worked with many agents over the years, there are some ‘hurdles’ that most people strike. To help with that I have put those issues in a list for addressing and resolve.
In commercial real estate brokerage sales, the focus that you create on certain things will help you get results. Many agents and brokers get diverted and distracted away from the things that really matter. (NB – get more sales tips in commmercial brokerage right here in Snapshot – its free)
In this audio program by John Highman, you can learn some of the important daily tasks in brokerage sales that can give you more traction in your market place with clients and listings. Isn’t that what its all about?
Fast track your career in the industry by using some of these ideas.
When you are looking to establish or grow your career in commercial real estate brokerage, there are things to do in building market share at a personal level. In this podcast program by John Highman, you can learn the key facts of building a good database of clients over time. (NB – you can get more career tips in commerial real estate brokerage right here in Snapshot – its free)
It is always the case that a broker or agent must know lots of people in their location and across their property type. That is a deliberate strategy and focus.
In this audio recording, John Highman talks about the importance of focus at a personal level. Build your real estate business in real and relevant way.
You can talk about recent levels of enquiry, trends in prices or rentals, the best methods of marketing, and feedback from recent inspections. You can display your information graphically, as statistics in the form of the chart, and also pictorially. Recognise the different ways to engage your client in the listing presentation with valuable local property market information.
In this audio by John Highman, you can learn some of the very specific ways to improve your sales pitch and presentation with a new client when it comes to listing their property in today’s market. You can listen to the audio below, where you can download it as required.
There are many things to explore as part of a new property management listing on your brokerage books. In this audio program, John Highman talks about the factors to question and review. Most particularly key matters to look into will include:
You can listen to the audio program here to understand exactly how you can approach the handover process in commercial property management today. It doesn’t matter whether you are managing a retail shopping centre, or a commercial office tower. The same strategies and processes apply. Attention to detail will help you with the fact review and gathering process.
Having spent a lot of time working on and in various building and leasing projects over the years, I know that the opportunities of working with commercial tenants and landlords today will always bring in other business openings into the future. (NB – you can get more commercial brokerage ideas here in our Snapshot program – its free)
Everything in our industry is linked, and your clients locally will usually have diverse needs in leasing, sales, and property management at some stage. It is all a matter of timing and relevance. Are you ready for some property leasing action?
Landlord and Tenant Opportunity
Recognize that a simple property lease transaction can open the door for you with a key landlord or business owner. Relationships are important. It can also be said that if you know plenty of things relating to local rents, lease documents, occupancy costs, property performance, and fit-out improvements, you can add considerable value to a property in capitalized cash flow. Strategy and ideas can help facilitate an agreement between a landlord and tenant.
In this audio program, I talk about the importance of the tenant and landlord relationship and how you can tap into it as part of your commercial real estate career.
How involved are you with your database list currently?
How accurate is that list?
Are you building some pipeline of contact with all the people in your list?
The secret to finding and converting more commercial real estate tenants will always be in your canvassing and prospecting activities as a broker or an agent; those are the specific activities that you activate and deploy every day into the local business community and or the tenants in your location. Landlords and tenants will be critical to the growth requirements that you have in commercial real estate leasing. Grow your contact model, and grow your real estate business.
Consider these questions:
How many new tenants to contact each and every day?
Understanding your town or your city, and the local businesses to you connect with regularly each 90 days?
If you were to show the landlord your database to impress them as part of the property leasing presentation, how impressive with your database be, and would it attract the landlord to your services?
Ratios and Results
There is a ratio to know and respect here, particularly as part of this leasing and investment property process. The number of listings that you convert exclusively over time will be influenced greatly by the number of landlords that you know personally and connect with regularly. Focus on building trust and confidence with the landlords that you work for. Provide regular updates of the leasing market together with comments leading to market rentals, incentives, and lease strategies.
Audio Program about Tenant Attraction
In this audio program, john Highman shares some of the proven strategies and ideas that can help you find better quality tenants and better landlords to work for. Honing your prospecting activities with a bias towards quality and ongoing contact will always be a valuable strategy to deploy. Connect with the landlords and tenants using relevant local information and local market knowledge. Connect with landlords and tenants at least once every 90 days.
You can have rent strategies for the short term or the long term. You can boost property value in a rental lift.
You can encourage a tenant to lease a property using fair and staged rents, or you can ask for the highest levels of income from the leased space and run the risk of a vacancy occurring.
Don’t forget that you also have net rents, gross rents, and incentives to work with in any lease negotiation. The income or rent that you start with can be enhanced over time, so look at the bigger picture when negotiating with tenants.
Don’t focus so much on the start rent, but the income over time. Look at the rent reviews and how they can support stable occupancy for the longer term.
In this audio program, John Highman talks about the rent and leasing strategies that are so important in today’s property market. You can listen to the audio and download it here: