A sales team in commercial real estate brokerage is typically (or should be) a group of like minded sales professionals in control of their market, their clients, the territory and their special property types. When you look into the team there are special indicators to watch and track as the team gets results in listings, clients, commissions, and referrals.
Commercial property today is as competitive as ever; top sales teams should be working to a plan and strategy for their location. The real estate ‘year’ is most commonly between February and November each year. Most of the sales and leasing transactions will be done in just those 10 months.
In this audio program, John Highman talks about the importance of tracking and monitoring the performance of the sales team.
In commercial real estate brokerage today there are some very common mistakes made by agents and brokers. The real estate market is always under change, and these changes require absolute and total focus on client and listing activity. Don’t make the mistakes or repeat the errors of others in your industry. Understand what works in your location when it comes to new business generation, and start to build your career accordingly.
Ultimately you need a good group of clients to help you build your real estate business over time. Through establishing professional relevance with each of your clients, you can grow your commission opportunities at the right time through your career.
In this audio program, John Highman talks about the common mistakes that brokers and agents make. You can avoid these issues through a simple set of professional controls and focus points.
The skills of your commercial real estate team will help you drive opportunity from the broader property market. Every client and every property will have various challenges when it comes to positioning or preparing the property for sale, lease, or management. On that basis the fuller services of the team can be put to good use.
The suggestion here is that you involve the other members of the brokerage team when it comes to working with larger properties and top quality clients. Take other members of the team with you as part of the property presentation or client discussion. Help the client understand how other team members will be providing valuable input when it comes to marketing and selling or leasing the subject property.
You will see this process happen with many of the top brokerages in major cities. They understand the need to comprehensively service the clients and the properties they list in today’s market; that is how some of the brokerages successfully convert highly complex listings and challenging properties to a marketing campaign.
Some agents and brokers just do not have all of the skills required across sales, leasing, and property management. Other members of the team can help fill that void. Don’t lose a listing because you did not have all the ‘answers’; use other team members to help you build a professional presentation and listing pitch.
Use the Full Team in Your Pitch for a Listing
Here are some ideas to merge into that pitch and presentation process:
OUTGOINGS: A property for sale can be subjected to an outgoings review prior to the marketing process commencing. When you look at any property locally, there will be averages that apply to the outgoings cost structure for and sale or lease. The property that you take to the market should be within the ‘averages’ for the property type when it comes to occupancy costs and expenditures. Any property with excessive outgoings will be difficult to market and lease; in that case enquiry is likely to be slow and difficult. The property management team can help you analyse weaknesses in the outgoings structure. They can also tell you how some expenditure adjustments can be achieved given the age of the property and local activity.
TENANT MIX: The leasing team can review the leases and the tenancy mix prior to any investment property sale. Leases can also be reviewed annually to position the property for income improvement and enhancement. In a property with a number of tenants and leases, the differences in lease structure will require review and assessment. The existing leases in a multi tenanted asset will influence the overall buyer interest at the time of sale. Involve the leasing team or the property management team to help analyse the existing lease documentation and make recommendations towards lease change or tenancy mix upgrade.
NET INCOME: The net income from the property can be optimised through an outgoings assessment and property upgrade. Some properties will have weaknesses when it comes to outgoings performance and net income levels. On that basis any small adjustments in the outgoings strategy can produce a better net income which then leads to an improved property value. Senior property managers will be very familiar when it comes to analysing and resolving outgoings performance issues to help a sale occur.
PROPERTY BUSINESS PLAN: A business plan for the property can be created as part of a specialised service for your top quality clients. A plan of this type can help when it comes to building a strategy behind existing vacancy factors, lease structures, tenancy mix issues, and property performance.
MARKETING PROCESSES: You may have a person within your team specifically controlling the marketing process with new listings and property types. That person can be a specialist in advertising layout, market coverage, photography, brochures, and campaign structures. With any property of reasonable quality and size, they will be invaluable when it comes to specific marketing strategies and target marketing. They will know exactly how to reach out to the audience in a productive and structured way; use their marketing skill to help you win listings. That can then improve the marketing campaign and attract more enquiries at the right time. A person of this type when talking to your clients will add value when it comes to marketing structure and campaign momentum. In simple terms, that allows the listing to be converted with the correct levels of vendor paid marketing funds to suit the current market conditions and the property. Property marketing is a very special process and many agents are quite generic at in. Help your promotional campaign stand out by involving other people in your pitch and presentation.
These simple strategies will help you greatly when it comes to pitching and presenting to clients and winning the new business. Involve other members of your team with the appropriate and necessary specialist skills to provide ideas and strategies with your new listings.
In a commercial real estate team, you cannot have negativity in any way or form. Individual agents performing poorly can easily influence the activities of others simply through sharing their negativity in the office and during sales meetings.
If this is a problem for you, the particular team member will need to be personally managed and redirected to solve their listings slump or commission problem. If the problem cannot be solved quickly, the person should be removed from the team.
It is a fact that most under-performing agents in any property market will have created the problem for themselves through lack of planning, a lack of action and poor focus. Training and skill development can help redirect those agents back to the important tasks and industry standards to build the business. That being said, any agent or broker with a negative attitude needs to be willing to learn and improve under the pressures of poor performance. That is where the leadership skills of the sales manager or team leader become very relevant.
Here are some good ways to control and remove negativity within the real estate agency team:
Whilst the property market will have variations of enquiry and seasonal change, there will be listings to attract, properties to market, and deals to negotiate. The attitude of the team and the actions of individual people within the team should be encouraged and promoted to a high level. You can do that through regular role playing, team meetings, and industry updates. Every sales meeting should be a positive event encouraging feedback from every team members and discussing market opportunity; high performing team members can be encouraged to share their experiences with others. The story of success goes a long way towards building ideas and momentum across the team.
Agents and brokers that are struggling with any part of their business may need to work with high performing agents for a period of time to experience and see the successful ways of working in the industry. Whilst every top agent or broker will do things differently, it is the advantage of a personal system that takes them forward; their system takes them into the opportunities of the property market in sales, leasing, and property management.
Every broker or agent should have a specific business plan relating to personal performance, territory management, prospecting, and new business focus. The plan should set the momentum for the financial year and be tracked on a monthly basis. It is unfortunately common to see agents create their plan for the year and then forget about the document and its application from that point onwards. Top performing agents structure a plan based on their skills, the property market, the location, and the identified opportunities of the property segment. In the case of top agents, that plan will be formulated prior to the beginning of the financial year and will be pursued vigorously each week and each month through the year. Adjustments will be made by the agent when necessary to ensure that growth of listings and commissions occur efficiently and directly in any property market.
On a weekly basis, every agent and broker should be tracking their results when it comes to essential activities such as cold call prospecting, meetings, listings, negotiations, and commissions. The best way for them to track the results will be through a chart or graphing process. That information can then be shared with the team leader, and on that basis by compared across the team. The team leader can then see areas of poor performance in agents that are struggling with certain segments of property activity. In identifying problems early, it is easy for the team leader to provide the necessary guidance and professional training. For
So the message here is that any negativity can be removed from a commercial real estate brokerage team through direct action and close monitoring. The skills of the team leader will have a lot to do with the results achieved.