Posted on

The Perfect Cold Call in Commercial Real Estate Agency Today

commercial real estate agent on the telephone
You can perfect your cold call process in commercial real estate agency.

Most commercial real estate agents hate cold calling and will avoid it at all cost.  That simple decision costs them dearly in market share, leads, and opportunities.  If you are in the industry by choice, you will need to do some ‘hard stuff’.  Telephone prospecting is one of the most important to do.  Here are some tips for agents from our Newsletter.

Master Cold Calling

To work in commercial real estate agency you have to master the cold calling process.  Each day you should spend 2 hours on the telephone talking to new people that you have not spoken to before.  It is a time factor that requires discipline and focus.  If you can master the art of call prospecting, then you will rise to the top of your market a lot faster than most.

The big factor in moving ahead in the industry is for you to practice and refine your call contact processes.  Who should you call?  Here is a list:

  • Property owners
  • Property investors
  • Business owners
  • Owner occupiers of commercial and industrial property
  • Tenants
  • Property developers
  • Property professionals (solicitors, accountants)

When you look at a list like this you will soon know that some of these people are hard to find and contact.  For that reason you should call the people that are easy to find first and then research the rest on an ongoing basis.

Keep it Simple

Business owners are simply taken from the telephone book or by researching the businesses located in the streets in your territory.  You can call 40 of those per day quite easily.  As to how many you get through to, the number will be less than half; that being said, you simply make the calls and keep doing so.

In contacting property owners you will find that the process is slower and more tedious.  That is because the property owners can be hidden inside company structures or property trusts.  Allocate yourself a target of researching 1 new property owner per day.  At the end of the week you will have spoken to 5 new people that have a solid interest in quality property.  Over time that connection will pay dividends when it comes to leads.

Watch Out!

Making all these telephone calls is one thing, but you should be aware of the ‘Do not call register’ and legislation or laws that could apply in your area.  Do not break the law when it comes to making calls.  In most cases, the business people and owners that you call are not impacted in the same way that private people in residential situations may be.  Understand the calling laws and stay within them.

The perfect cold call is a systemised process that occurs every day to a plan.  You can develop your dialogue, call contact systems, database, and follow-up systems to take you forward.  Start practicing and you will get there faster.

You can get some more tips for Commercial Real Estate Agents in our Newsletter.

Posted on

Prospecting and Cold Calling Tips for Commercial Real Estate Agents

glass fronted office building
Prospecting and Cold Calling will make all the difference in your career as a Commercial Agent.

When it comes to commercial property sales and leasing, we all hear and know that you must prospect for new business regularly otherwise you will go poor very quickly as a salesperson.  The fact remains true and is much more evident today as the property market is slower and tougher for many salespeople. In this market you need lots of contacts and property listings to make things work.  The listings will give you the enquiry that you require and that is the fundamental rule to the business.    Here is an article from our Newsletter.

Quality listings bring quality enquiry. So you get two different groups of people in the profession at the moment.  You get those that prospect every day and those that really do not get to the process very often.  The latter is far more common and they are the majority of salespeople that I talk to; they are finding things a bit tough at the moment.  They need help.

So what can you do if the market is tough and slow for you right now?  You can get prospecting and do so to a system and direction.

Here are some rules for the process:

1. Make prospecting a daily event regardless of all the other things that you have to do in your job.  Prospecting is the number 1 activity in your diary.

2. To prospect well, you need to be prepared for the rejections that you will get.  Many people will not have an interest in what you have to say or offer.  Many people will not want to talk to you.  When that occurs you simply move on to the next call.  There are plenty of people to talk to in the property market.

3. Your focus on the task is more important than anything else.  If you simply do the calls without the focus and dedication that it requires then the process is harder and less successful.  You need a mindset to help you through this thought related problem.  The mindset is confidence and consistency based.  You have to believe in what you are doing.

4. If you need something to get yourself started, use a simple script for the first few sentences in the call, although move to conversational mode as soon as possible.

5. Preparation is the key to calling the right people.  Each day you have to research more of the right people to talk to and meet with.

6. Create at least one new meeting per day with new people that you have not met or contacted before.  This is critical to the growth of your business.

7. Each day make sure you have updated your database with fresh information and contact detail from the calls and meetings that you have created.

In running a commercial real estate office, I would rather have working for me 3 salespeople that prospect every day, than 10 salespeople that do not.  There is a huge difference in the income of those salespeople that prospect every day.

Need some more tips?  Join our online community and newsletter right here.

Posted on

Commercial Real Estate Agents – Protect Your Commissions and Fees from Shifty Clients

Whilst I may be biased, I have seen so many commercial real estate clients over the years take the advantage where they can to avoid paying full or any commission to the agent that has served them in a sale or lease transaction.  Some agents and salespeople that should have known better have been impacted by many tens of thousands of dollars after the client has avoided payments.

If the client wants to avoid something they just need to hand their agent’s appointment to their solicitor to look for a loop hole.  Solicitors are good at that!

So what is the message here?  Make sure that your agency appointments are ‘water tight’ and accurate.  If you do not know what that means or looks like, then find someone who understands just what a good listing document looks like and how it is completed.

All too often we see the media knock agents for an array of reasons; rarely  if at all will you see the reverse happen in the media when a client does the wrong thing by an agent when that client seeks ways to avoid paying commissions or fees.

We as agents have to be so focused on our documentation today.  Every appointment to act as agent on behalf of a client should be correctly signed and completed accurately.  If we do not do that we leave the door wide open for the client to avoid commissions and fees.

Here are my rules on that:

  1. Never trust a client no matter how long you have known them
  2. Question a client deeply and comprehensively regards their property and legal title
  3. If you are to introduce a buyer to another agent that has a listing of a property, make sure that they have legally been appointed to act as agent for the client and that your share of the commission is agreed to be paid by that agent at the time of settlement.  Get the conjunction agents written agreement to the process before you introduce your buyer.
  4. Get every appointment to act as an agent correctly signed by the client before you take action with the listing
  5. Get all instructions in writing from the client or in the case of verbal instructions evidence back to them in writing any instructions given
  6. Collect sufficient funds to cover your commission and fees before you settle a deal
  7. If you have a marketing commitment made by the client to vendor funded marketing, then get the money paid and in the bank before you lodge the adverts.
  8. Draw the attention of the client to the fees and commissions involved by getting them to sign the agency appointment and initial the clause relating to payment of costs and commissions

Remember that you are not a charity and that you provide some very special skills for the clients that you act for.  Do not provide those skills unless and until the correct documentation has been legally and accurately signed by the right property owners for the subject land or building.

If you want some more free tips on commercial real estate, visit our website at http://www.commercial-realestate-training.com/

Posted on

Evaluate Your Local Area Marketing

When you work as a real estate agent in commercial real estate it is important that you implement and monitor your local area marketing campaigns. Commercial real estate is a property type that is centred on the sentiment and activity of the local business community. Your local area marketing should be centred on three parts of the local property market. That is:

  • Property Investors
  • Business Proprietors and Tenants
  • Property Developers

Each year you should set aside funds for local area marketing. That is the marketing of the individual salespeople and also the real estate office. The marketing tools available for your promotional purposes should be systemised within the groupings that work locally. They will usually be:

  1. Signboards on properties available for sale or lease
  2. Internet Advertising on your website
  3. Internet Advertising on generic industry based websites
  4. Success letters to the local property owners and businesses
  5. E-mail marketing through specific newsletters
  6. Hard copy brochures and flyers specific to the property type or the individual property
  7. Direct mail to the local property owners
  8. Direct mail to the local business community
  9. Just listed letters to the adjacent and nearby property owners
  10. Referral business through previous contacts
  11. Established relationships with the older transaction clients
  12. Database pipeline regular contact
  13. Cold call prospecting in your local area
  14. Canvassing of the local streets relative to the commercial property zone

So these are all marketing tools to be used by the salesperson or real estate office. Any enquiries generated should be tracked to the particular originating point of contact. In that way you will know the marketing tools that work more effectively for you.

Today there is a tendency to take the easy road when it comes to property marketing. Electronic Systems of contact such as e-mail, email newsletters, and Internet Marketing are convenient for the salesperson to use, but they should not replace the traditional advantages of personal contact and physical meetings.

In simple terms, tracking your marketing activities will allow you to understand the processes that really do work when it comes to attracting enquiry. Each and every enquiry should be entered into the property enquiry database for regular ongoing contact given the desired property type or attributes needed. An up to date database is of high value to your real estate business and commissions.

When you evaluate your marketing you can make better decisions when it comes to attracting property enquiry for your clients. The agent with the best local database will be of high relevance to the property owners needing help with a property challenge. Use your database and your marketing tracking activities as points of difference in selling your listing proposals.

You can get more tips for commercial real estate agents at our website http://www.commercial-realestate-training.com/

Posted on

When Commercial Property Listings are Hard to Find

When the property market goes through a few shifts and changes it influences the property owners to hold off on any decisions of sale or lease until they know just what is going on. Some agents think the same way and do little to adjust their ideas and approach to the market. All of a sudden you get no stock on market and fewer sales or listings. Everyone then says that the market is ‘dead’. The reality is the reverse; when things are tough, the clients and prospects we represent need better agents that really do know how to respond in this time of challenge.

The reality of the situation is that listings are out there and some people still need help with property challenges. It all comes down to the mindset of the agent. There are also buyers and tenants for every property on the market; you just need to focus more on getting results and you will do that by talking to the right people.

If I was selling or leasing my property today I would not want an agent to list the property who thought the market was quiet! I would want the best agent that knew what the market was doing and how to tap into the shifting enquiry and the requirements of buyers or tenants today. Can you do that?

When things are changing, the marketing of the property for sale or lease becomes much more relevant. It is not just a matter of placing a few advertisements on the internet and in the paper. The marketing of commercial and retail property listings today is much more specific and driven. That is why exclusive listings are more important than ever before. Exclusive listings are locked into an agent so they can devote much more time to the process of direct marketing and target marketing.

So the moral of the story is this; there are listings in the market today that are screaming for a good property agent to take over and drive better results. Find them and work them.

If you want some more tips for commercial real estate agents you can get them here http://www.commercial-realestate-training.com/

Posted on

Does the Listing Agents Concept Work in Commercial Sales?

When it comes to commercial real estate agency activities, the concept of a listing agent driving new business opportunities is sometimes overlooked. The process of having one or two listing agents in your office does have merit providing you set the right rules and operational systems.

This is what a listing agent will generally do for you:

  1. They will generate more listings faster than the other agents because that is their speciality
  2. They will help you get more signboards into your territory
  3. They can drive new business in segments, property types, and locations

Not every salesperson will be a good listing agent. It requires a special type of person that easily builds relationships and converts listings. This says that the person or people that you put in this role should be:

  • Expert in time and task management so they are prospecting every day in the right way
  • They have systematic call processes to underpin call and database growth
  • They target quality new listings in locations that sell
  • They understand the processes and methods of sale so each listing is correctly established given the local property trends
  • They can present the agency and their listing offering well to customers and prospects of all types
  • They can list all types of property comprehensively and correctly with all types of prospects and clients
  • They can design marketing campaigns that tap into the right target market for each and every property type
  • They commit to the process of database collation and usage.
  • They build strong client relationships for the long term.

A good listing agent will generate listings more efficiently than other agents in the office. Given that listings are the lifeblood of the real estate business, it is essential that the listing agent is correctly paid commission from each and every deal. When you find the right agent for this role you have the potential to create more listing growth. Just ensure that the business relationship between the listing agent and the others in the team correctly protects the client connection for the long term. Give the client a great business experience in listing, marketing, negotiating, and follow-through of any sale transaction.

Posted on

Finding Commercial Tenants in Today’s Property Market

When you work in commercial real estate agency and property investment, you soon start to understand the high value of good tenants in a property investment. It’s in volatile and tough leasing markets like these that the pressure raises and the tenants that you have in the client’s property are just so important.

The reality of all this is you can make a lot of commission for yourself as a real estate agent in this market, if you work the leasing churn and the business tenants that need or want to move. Sure, sales are a bit slow and tough, but leasing is really active. Businesses are on the lookout for good premises to pick up and move to where they can improve their net position. Some businesses need to move and they need help.

Need to make some commission today? Start working the leasing market; you can go back to sales when times allow, but right now start picking up on the leasing of your local business community. Here is where you will find tenants:

  1. Call down the business telephone book for your area
  2. Work the businesses in the local streets by dropping by and leaving your card.
  3. Look for owner occupier businesses that want to sell and get their hands on some cash from the sale. Do a sale and lease back.
  4. Talk to more people locally.

Commercial real estate is not that hard; it is just requires knowledge of the local area and your ability to talk to many business owners and property investors in an ongoing and consistently relevant way. Quite soon the market will become friendlier for you.

My name is John Highman, check out some more of my ideas and tips for commercial real estate salespeople at http://www.commercial-realestate-training.com/

Posted on

Make Your Best Pitch for the Commercial Property Listing

When you, as a real estate agent, pitch for a property listing in commercial real estate sales or leasing, the reality is you will not win every property that you go for. You should however aim for a better average success rate than the other agents that you are up against. A 65% to 80% success rate is a good result. It shows that you are doing things in a way that is attractive to most of your clients and prospects.

Some clients and prospects will be motivated by things that you cannot change or wish to cooperate with as part of the listing; the reality is that you should not agree with all the demands of the client in a sales or lease listing pitch. Your confidence, market share, knowledge of the market, recommendations, and communication skills in the pitch will determine how successful you are. These factors give you leverage above the competition and through the soft demands of the client.

Whilst the client may demand discounts in fees, low vendor paid advertising, and open agency methods, the reality is that they are not dumb and will still choose the best agent to do the job. They want the agent that can market the property in the most efficient way to get the best outcome for them. When they try you on, you do not have to agree. In most cases they will take your offer and recommendation if you stick to the process and show them why you are the best agent to do the marketing and promotion of their property.

Do not be generic in your sales pitch. Be specific to the property and connect with the client’s dilemma. Show them how you can resolve their property pain.

You can get more tips for commercial real estate agents at http://www.commercial-realestate-training.com/

Posted on

A Word About Commercial Real Estate Career Success

Having been active in the property industry for over 30 years I have seen lots of people and real estate businesses come and go. I have also seen some good and some bad salespeople. I have seen 3 boom and bust cycles in commercial property.

A career in commercial real estate is like all other sales jobs; it takes personal commitment and focus, and only the very best survive for the long term.

The very best salespeople in the industry build the personal profile and the skills that the market wants and needs for the long term. These salespeople have a solid group of clients that follow them and trust them in any market and at any time. Business follows them as they move from agency to agency.

Right now the property market is tough and slow for some real estate agents; sales are slower and buyers are less active due to the restricted availability of funds hence pushing prices down. The main reasons for agency discomfort are:

  1. The larger corporate real estate offices with the big overheads have not adjusted their operational costs (rents and base salaries) when the commercial property market started to change from booming sales based enquiry to a less income (commission) generating leasing based market.
  2. Many salespeople have not adjusted upwards their personal efforts and prospecting focus

So everyone today has to work harder and adjustments still need to be made by some agencies. Unfortunately some salespeople are still working at the same old pace they are used to and the high base salaries are still keeping them comfortable at the status quo. The only person that gets upset is the boss of the agency as lower commissions are threatening the performance and viability of the office.

When times are slow or tough the first people to go from the office are the underperforming salespeople. There is a message here for all the salespeople in that underperforming category; get active and build your business right now. Find the properties that are selling and leasing and adjust your prospecting efforts around them.

Your success in commercial real estate is a personal thing that is driven from your own activities and focus. The office that you work for is only a small part of the equation. There is an old saying in business (the author I cannot remember), and it goes something like this.

‘The degree to which you feel you are under control is the degree to which you will be successful.’

Get yourself under control and sell or lease the properties that are active at the moment. The larger big priced properties are off the books for some time, so find something that you can sell and lease today. Understand one thing; your success in commercial real estate is personal, so make it happen. Work hard and the rewards will still come as long as you put in. You have the solution to the problem.

You can get some more tips for commercial real estate agents at my training and coaching website http://www.commercial-realestate-training.com/

Posted on

The Right Sales Pitch for Commercial Real Estate

When you are to do a sales pitch to try and win the commercial real estate listing, the preparation you undertake should be all about the property and the client’s immediate need. When you do this, the client will listen to you and your proposal more effectively. So how can you do this well? Let’s set some rules.

A sales pitch in commercial real estate sales or leasing should be totally about where the property is now, how the client needs a resolution, and how you can help them. The pitch should be composed as a story; you are the story teller. Your story should show the client that you really understand and that your solution is better than anything else around.

The more closely you align to the client focus, the more real your chances are of closing on the listing. The only way you can do this to an exceptional level is by understanding the client and the property fully beforehand. This means doing some listing presentation preparation work something like this:

  1. Inspect the property with the client a day or two before the final presentation
  2. Question the client comprehensively about their ultimate plan and requirement in going to market
  3. Show the client what comparable properties and situations are going to challenge them

From a base of issues like this you can move to your solution and strategy.

The best sales pitch or presentation is about the client and the property; it is not about you and your achievements over time. The client would normally have known about that before they asked you to quote on the listing.

You can see some other tips and tools for real estate agents at http://www.commercial-realestate-training.com/

Posted on

Where Are All the Buyers for Commercial Real Estate?

In property markets like this it is common to hear that question from most salespeople. Where are all the buyers exactly? Where have the buyers gone? What has happened to the property market?

Whilst it may seem that there are less buyers around, the reality is the buyers are still out there, but they are harder to find. They are watching and waiting for the right deals to come along. They are selective.

The buyers that can purchase property today are those with proven portfolio diversity and stability. Those buyers know what they want and are looking for the bargains. The banks will lend them money when the right property comes along.

This property market has changed the goal posts, enquiries to buy are less frequent, and negotiations are slower to evolve. Urgency has lessened on the buyers, so they can think the deal over before committing to paper. Pressure on the buyer has now moved to the seller. In many cases the seller may only get one offer for their property so ‘holding off’ for a better price is not an option.

As a property professional of many years in the industry, I know that the most important tools in your business right now are your database and the telephone. When you make the telephone calls every day and build your database with qualified people, the deals and opportunities will still come your way. It always comes down to you doesn’t it? Surely that’s a good thing?

One final comment; the most important skill that a salesperson in commercial property would have right now is the ability to condition and negotiate with sellers so that the sellers really do come back to reality on prices and processes to sell their property in this market.

You can see more free tips and tools for commercial real estate agents at http://www.commercial-realestate-training.com/

Posted on

Make Every Day a Prospecting Day

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:

  1. Street by street canvassing of five properties per day
  2. 50 calls to new prospects in the market
  3. Follow-up calls to existing prospects and contacts
  4. Review of the database of people relating to previous property enquiry
  5. 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.

You can get more free tips and training articles for commercial real estate salespeople and agents at http://www.commercial-realestate-training.com/