Over many years, I have worked for and with many commercial real estate customers. In saying that, the variation of customer focus and interaction was sometimes large, unexpected, and challenging. (NB – you can get plenty of commercial real estate tips here in our Snapshot program)
Not all clients and prospects are ‘equal,’ and should be respected for the individuals that they are and the property ‘challenges’ that they face. The fees that you set for working with some of these ‘high end’ clients on a complex project or property challenge should be well considered based on your predictable time and effort.
Understand them first and foremost
The message to remember with some if not all clients and prospects is in the need to get to know them comprehensively first and foremost; that is in their thinking, targets, challenges, and investment goals. You can only provide ‘help’ when you understand the ‘big picture.’
Look for the patterns and strategies that you can provide help with. Only offer the client your fullest services and commitment when you fully understand what they are doing, what they are facing, and what they are looking for in solutions.
High value clients
Some clients are better than others from a ‘value’ perspective to you. Have you set your ‘value’ criteria? Try some of these for starters:
- Repeat business over time
- Property portfolio by size, location, and type
- Services variation (sales, leasing, and asset management)
- Commissions by amount and frequency
- Referral opportunity from friends and acquaintances
In looking at the list, it is easy to see how some clients will be higher ‘ranking’ than others. Categorize the people that you know now, and can connect with. Communicate with ‘locals’ for the ‘right reasons.’ Focus your prospecting and communication efforts into the best individuals in a location.
So, where can you start with all this?
Look at your database of clients and prospects, and then split that list into VIP’s and ‘others’. Most of your prospecting and new business efforts should focus into the VIP’s in your client or contact list. When you know the value that these people can bring you, then you can know what to do in communication and connection.
Here are some facts about clients in commercial real estate brokerage today:
- They are always out there looking for properties to act on. If you have a good selection of high-quality exclusive listings, you will find other ‘high quality’ investors approaching you about listing information and inspections. The ‘quality’ rule is easy to follow and understand.
- They require market evidence. Keep abreast of local property trends and changes so that you can use them in an informational and relevant way. You should capture the facts of the larger deals in sales and leasing so you can use those points in your client conversations, presentations, and listing pitches. Market evidence is hard to refute or dispute.
- They like to work with ‘specialists.’ Most clients like to work with the established and active property experts for a location. Real estate is not an ‘experiment’; put yourself into a ‘specialization’ category and help your clients and prospects understand that fact.
- They know what they are doing when it comes to local property. So, take your time in helping them, and show them respect as you move through their asset challenges and known issues. Seek to understand them first before you pitch your ideas and strategies.
- They will generally listen to logic. When you work from a basis of local market evidence, the clients and prospects will listen. Have some visual and informational tools to use in the customer conversation or meeting process.
- They like to have a ‘win’ with a listing, negotiation, or inspection. Some negotiations can be lengthy and complicated. Let your clients feel as though they are in control as you move them ahead, and that they are at the ‘winning’ end of the equation. A small ‘win’ will usually be a valuable tool to closing off on a negotiation or transaction. In saying all of this, remember who your client is in the transaction, and help them move on the right opportunity.
Property clients are at the center of everything we do in commercial real estate brokerage. Market yourself, your knowledge, relevance, and skills into your customer list. That is how things work in commercial property today.