When you pitch and present your brokerage services to a new client in commercial real estate, the connection and engagement process should be well considered before you get to the property meeting.
In simple terms you only have a short period of time to capture the interest of the client and move them into and across your property recommendations. Clarity is really critical to getting the client to see what your saying and why that is so important to their property situation or resolution.
So what can you do? It doesn’t matter if you are pitching in sales, leasing, or property management, the same rules apply. You should have an engagement strategy that moves a client into your ideas and property recommendations.
In this audio John Highman talks about that very process of pitching and presenting your services to a client.
In commercial real estate brokerage, you can and should mix and match your prospecting activities to the market conditions and target market. You can get involved in networking events and meet new people that way.
In this audio program, John Highman talks about the important prospecting concepts that help brokerage growth and opportunity.
Make no mistake, the commercial real estate industry can be intensely competitive in so many different ways. That being said, most agents and brokers are typically ordinary when it comes to client contact and prospecting activities.
The fact of the matter is that new business growth and opportunity over time should be a central part of your business model for your location and your property type. Make sure that you have a specific prospecting model that drills into the investors and businesses in your location on a daily basis.
Here are some ideas to help you sweep aside the competition as you work towards more listings and an increase in sales and leasing transaction activity:
Ignore peer pressure and innuendo. There are too many so called ‘experts’ in the industry many of whom are quite average when it comes to business performance. Everything that you do and achieve in your individual real estate business is self-generated and has nothing to do with anyone else. If you deliberately ignore the other average agents around you, you can soon get traction within your own market share; build your confidence accordingly. You can then assess your own progress and opportunity. Judge the market yourself and understand with the market is heading for you. Make your adjustments based on personal experience and personal effort.
Be yourself and improve yourself. Understand your skills for what they are and how they can help you grow your real estate business with both listings and clients. Improve your strengths through practice and knowledge development. Any weaknesses can be removed through personal training and personal development.
It is best if you can specialize in a combination of specific services such as sales and leasing, or property management and leasing. There are distinct linkages between those services that will give you more business over time.
Know where you are headed in the industry and the location. Establish a business plan that deliberately focuses you into a specialized property type and a specific location. Beyond that point you can drill down into various strategies of personal marketing, database growth, and client contact. You need to be the best choice as an agent or broker when it comes to property activity locally, so that strategy needs to be at the centre of your business model. Understand your competitors for who they are and what they do. You can then differentiate yourself appropriately for the location, for the client base, and for the predictable changes in the property market.
The message here is that you can specifically focus your commercial real estate business for better results over time. It is a personal skill and it is a personal strategy.
Understand exactly where you want to go when it comes to property market activity, income, and market share. Develop your commercial real estate business through personal and deliberate efforts.
Its the time of year where we can still create some real momentum in the property market. There is still some 2 months of opportunity and transactions to be sourced. As you focus on that idea, understand and remember that how you work through the next 2 months will impact the way in which you start 2015.🙂
I have put 4 audio programs in this recording below. All different topics, but all very relevant to what we should be doing in the property market today.
Here are the topics:
The 3 common mistakes that most agents make, and how to avoid the problems.
Why you should think about your ‘opening statements’ as you work with new clients and prospects.
How to work more productively with property investors this year.
How to go about routing inspections in commercial property management and why the process is really important to the ways in which you help your landlord clients.
These are all parts of the eCourse ‘Snapshot’. You can get more of those eCourse ideas and templates by joining up right here.
When it comes to leasing commercial property today make sure that you understand the current market conditions, and that you convey those market conditions to your local clients, landlords, and the tenants that you serve. Our industry is not an experiment; it is a very specific process and it is established on set investment, marketing and negotiation principles.
Help the Client Understand the Facts About Leasing
Any misunderstandings or missing information when working with tenants and landlords from a leasing perspective should be realigned to current day market conditions with clear market evidence and relevant supporting material.
Your job is to have that ‘comparable’ material available and handy solve any negotiation, listing, or leasing challenge. Condition the people that you work with in the correct and the most professional way; use market evidence.
Your Message on Leasing?
The concept here is that you are the best person to ‘recondition’ your property market and the people that you work with; you understand the realities of the property market far better than they do. Help your clients and prospects realize that the real market conditions are here to stay and brief them on those conditions. Explain the prevailing market conditions comprehensively.
Gather the facts and then help the landlords and tenants that you work understand the prevailing market conditions across:
Rental activity – track and measure the levels of rental activity across all recent leasing transactions. Compare the differences between net and gross rentals in each case. Understand how they relate to the location and the property type. Provide the rental details to those that do not fully understand what is happening locally with property segments.
Market rentals – real market rentals are determined as a result of negotiation between willing and committed tenants and landlords. Some of those rentals will be impacted by local vacancy factors, the available competing properties, and the asking rentals applicable to each property and landlord.
Competing listings – where appropriate take your clients to see competing properties in the location. The visual approach will help them understand the influencing factors that impact levels of enquiry and offers.
Property improvements – with older properties there will be issues with the standards of property improvements. Do assessment of improvements, services, and amenities when it comes to every leasing vacancy.
Industry enquiry – understand where the levels of enquiry coming from today when it applies to particular locations and property types. If you are marketing effectively in an ongoing way then the enquiries coming to you should show trends and opportunities. Every inbound call generated by a quality listing should help you understand what tenants are looking for today. You can chart those requirements and provide recommendations to the landlords that you work with.
Methods of marketing – certain methods of marketing in commercial real estate will be more successful than others. A lot depends on the target market that you are chasing however choose the right marketing solutions to suit the situation, the current market conditions, and the target audience. The Marketing Solutions that you adopt will be somewhat subject to the amount of available funds and the prevailing market conditions. +
Inspection processes – some properties require specific inspection strategies allowing for the improvements, the property layout, the strengths and weaknesses of the listing itself, and the landlord. As part of every exclusive property listing process, establish the inspection processes that will feature the property correctly and directly at all times. In a complex property, establish the track or route that you will take across floors and through common areas.
So, all of this is informational and helpful when you are working with property investors, business owners, landlords and tenants today. Are you prepared to provide and explain all the elements of the property market to those people? Have you got all of the information to help ‘close’ on a leasing transaction?
Recondition the clients thinking and perceptions in leasing properties and premises locally. You are the specialist to do that.
In commercial real estate brokerage you need plenty of clients to support your listing and commission activity. You also need new prospects and opportunities to fill the gaps when some of your clients move on or leave the industry.
Given that we are soon to be starting another calendar year, it is time to have a look at a new and fresh approach to prospecting and client networking. This should be a personal priority for all real estate agents and brokers. This is the best time of year to get your client activities and database directions set for the next 12 months.
Here are some facts that relate to the market today and the clients we work with:
The ‘market noise’ from competing agents will always be significant. Many of our top clients will be working with other real estate agencies or at least know of some other top agents locally. This is a continual threat to our market share that can only be addressed by relevant and constant contact with the clients that we know. That is why property specialization is such a critical process in building listing opportunity. When the time comes for the client to move on a property matter they will usually choose the best agent with a dominant market share within the location and the property type. That is why general real estate agents and brokers never really develop dominant levels of business.
Winning a listing today is not entirely about providing discounts or inflating the property price to attract the clients business. Winning a listing is all about packaging the property to attract the maximum interest and facilitate inspections. High prices and higher rentals will not do that. Understand the prevailing market conditions and how you can work with that to solve the property challenge for your clients and prospects. Show the client the true facts of the market as they apply to the property type and location. Tell some stories relating to both successes and failures within the property category.
If you have a property that has been on the market for a long time, it is time to seriously adjust and reduce the price and or the rental structure in line with market conditions. Clients are not fools when it comes to true market conditions; they want results. They will usually understand that an inflated price or rental will make the marketing process quite difficult, so your pitch or presentation needs to tell the right story and provide the right market evidence. Any property with an inflated price or rental will soon become stale on the market; stale listings are usually quoted by top agents as marketing weaknesses. It is easy to show clients how other overpriced listings have been poorly marketed and overlooked by buyers and tenants. If the client is still unrealistic on price or rental expectations, it may be time to walk away from the listing and let some other agency or brokerage waste their time.
Every quality listing should be exclusively marketed. As part of that process, you should be asking for and attracting vendor paid marketing funds. Structure your sales pitch and presentations accordingly. Marketing dollars spent will have a lot to do with your real estate profile locally.
Working within these very simple and yet important facts, it is time to look at the ways you can attract new clients and listing opportunities. As I said earlier, the change in the calendar year is upon us and certainly will give us the opportunity for a new business direction and a freshening of our client connection process.
Here are some tips to help you with reaching out to new clients and prospects:
Visit the people within your current database with the deliberate intention of asking for referral business and opportunities.
Identify the bankers and financiers within your town or city that have an interest in commercial industrial or retail property. Get to know those people at a personal level.
Contact all local accountants and lawyers locally that appear to be reasonably successful with their business activities. They are likely to have many clients active or interested in commercial property.
Identify the entire listings list active with your competitors. Use those listings as leverage to talk to other property owners nearby. Some of those property owners may like to compete with the current listing in the same location.
Identify the people that have purchased investment property within the last 3 to 5 years. They are likely to be active again within the next two or three years. They may wish to buy, sell, lease, or develop.
Check out the property development activity at the local council. Also check out the changes to zoning and property usage. All of these things could be solid foundations for project marketing, future sales and leasing activity.
In our industry there are many leads and opportunities available at any point in time. It is simply a matter of digging deep enough into the marketplace, the people, and the listings. Opportunities in commercial real estate are always available and it is simply a matter of asking the right questions to the right people.
In commercial real estate agency and brokerage, the process of ongoing contact and prospecting will help you with market share in a significant way. You simply need to ‘turn the key’ on client contact and grow it at each and every opportunity.
To make this process work for you, ensure that you have the following tools in place and ready to use:
A defined geographical area defined on a map where you can focus your prospecting activities on a regular basis.
A database that is simple to use and easy to access. It is preferable that the database will be accessible from both the office, and when you are out in the sales or territory region.
A landline telephone system that you can use each day in privacy and without the distractions of a noisy and busy office.
A computer that you can have at your fingertips as part of making direct cold calls and prospecting research.
Travel through the main streets in your territory and visit the other listings that are currently on the market so that you can understand marketing strategies, prices, and rentals.
Create a system of calls to occur at the same time every day. Normally you can achieve 50 outbound calls in a period of 2 hours.
Build a simple prospecting dialogue that you can use in the early stages of cold calling and client connection. Over time this will become redundant as your dialogue will improve naturally.
So the process of ‘turning the key’ on client contact is to take the necessary prospecting action each and every day. In doing so, remember that the cycle of commercial real estate is relatively long. Most of the people that you talk to today will not have an immediate interest or need. They will however have some property challenges down the track and for this reason your database needs to allow ongoing regular contact each period of 90 days.
In connecting with new people as part of the prospecting model, remember the relationships between sales, leasing, and property management. Ask questions across each discipline to see if any pressures apply or any future needs could occur.
Here are some interesting numbers to help you understand how all of this works:
In a period of 2 hours, you can make approximately 40 to 50 calls. Those calls will need to be researched the night before. The Internet and the business telephone book will help you significantly at the early stages of your career with this process.
Eventually you will find some good clients and prospects to maintain contact with. You will need some selective criteria to understand exactly who you will be putting into your database and for what reason.
In making approximately 40 to 50 outbound calls, you will connect with about 15 people. The others that you cannot connect with today can be pushed to the next day or later in the week for another ongoing contact. You will need a system to maintain the flow of interaction and return call process. Organisation is the key to help you here.
When you connect with approximately 15 people per day, your target should be to create two new meetings. Those meetings should be established on the basis that the person will have a current or future need when it comes to commercial property.
From each meeting and from each positive outbound call, maintain a process of repeat contact at least once every 90 days. When you know the person is ready to act in some respect, you can shorten the cycle to bi monthly or monthly.
Many agents and brokers struggle with the rejection process that inevitably comes with prospecting and cold calling. That does not need to be the case given that you are a commercial real estate professional and that your services are highly valuable to the right people. The prospecting process should therefore be undertaken on the basis of identifying the people you can help now or in the future.