Local people are the foundation of a successful real estate business. You can work with the key players of the real estate business locally and most particularly sellers, buyers, and business owners. There are plenty of opportunities in commercial real estate to be sourced in those groups as part of a prospecting model.
In this audio I talk about the importance of a ‘locally focused’ prospecting model and how that can work for you in your real estate business. Drive more listings and commissions your way through a bias towards the local area and the people in it.
In commercial real estate brokerage, you should be looking for the ways that you can match your VIP clients into the right listings and property situations. There will always be a good group of your clients looking for more investments or a portfolio change. (NB – you can get our free commercial real estate training right here)
So what can you do with this?
When you know lots of local people, you will find those key clients that you can work with in a productive way. You can move those clients across sales, leasing, and property management activity.
Understanding the clients situation is at the center of all of this. If you are connecting with your clients regularly, there will be things that you can help with.
In this audio based coaching session, John Highman, Commercial Real Estate Coach, talks about the ways that you can match your clients into the opportunities that you know about.
At different times of the calendar year there will be good opportunities to run a sales listing drive. As part of that you will be choosing the best methods of marketing and sale. Business and investor sentiment will also have something to do with the choices made here.
So you have some sales listings? Maybe you want more of that? Either way, here are the main factors of opportunity to tap into as you drive the sales momentum forward locally:
Timing for season and location – look at the property activity for the year, and reflect on the history for the area. Most sales calendars are best commenced just after the Christmas break and also just after the change in the financial year. In each case you have a few months to build momentum on listed properties, and the people looking to buy are not generally distracted in local business issues or holidays.
Best methods of sale for the time of year – you have a few methods of sale at your disposal. Choose the right ones that match the property and the client’s needs. At the basic end of the equation you will have auctions, tender, expressions of interest, and sale at a price. One or more of those methods will be the right choice for your listing. Talk to the client and get their commitment to your recommendations; explain the issue to them, and convert them. Match some vendor paid marketing into the right method of sale, and the exclusive listing process.
Talk to the right investors and property owners – every listing will be more or less attractive to certain segments of the local property market. Find those people by directly target marketing at an individual level. Get involved separately in doing that. Make sure that you meet with the right people in the right places. You want them to know you and remember you as the industry professional that they require.
Repeat contact 300/90 – in our industry, regular contact will always help listing momentum and conversion. All of the people in your database should be spoken to regularly. The 90-day cycle works well. The way to achieve that level of contact will be through deliberate calls, letters, and meetings. The database that you use should be adjusted to bring up that 90-day process of contact automatically.
Track your streets and location progress – when you have anything to sell or market, review the streets and the competing listings. Get very involved in local area marketing. Know what is happening in the streets and do something with that knowledge.
These simple strategies are all relevant and special in the sales drive that you may create in your commercial real estate business. Optimize the process of promotion and property momentum. The first few weeks of any sales campaign are the most important. Get involved and get active.
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.
The commercial property management segment of the market can be quite lucrative from a brokerage perspective. The clients that you serve in that way require specialized skills and services over an extended period of time. The complexity of the property can involve strategies and activities across the tenancy mix, leasing, vacancy resolve, maintenance management, asset planning, and income performance. There are many things to do and many ways to approach the challenges that the client may face.
So the message here is that you can and should develop a significant property management portfolio in your real estate brokerage. Take the time to develop a list of clients and prospects who will need your services in management at some stage in the future. Develop a prospecting process to open the doors to management opportunity.
The best way to attract commercial real estate clients and those needing management services is to directly prospect the owners of the best buildings in the best locations. It is always preferable to manage a building with multiple tenants in occupancy and multiple levels of income generation.
The bigger buildings and those with a complex tenant mix require expert management help. They also require complex software management programs to administer the required controls on leasing, maintenance, tenant mix, and income optimisation.
So there are some distinct advantages here to be optimised. In this audio recording, John Highman talks about the opportunities of commercial real estate property management in brokerage today. See if you can use some of the tips that John talks about to open up your brokerage opportunities in this way.
In commercial real estate leasing, there are plenty of lead generation opportunities to be had when it comes to tenant placement and leasing activity. In any town or city at any time, there are usually plenty of tenants looking to move for a number of different reasons.
Your job is to locate those tenants at the earliest possible time before they consider moving and changing premises. The relationships that you strike with tenants locally will help you grow leasing activity and opportunity.
There are two sides to the levels of new business that you create as a property leasing specialist. Firstly you should be working with landlords helping them with vacancy problems and tenant mix strategies. That in itself is quite specialised process. Secondly you should be working with local businesses and tenants to help them relocate at the right time as part of their business activities and growth strategies.
What’s it all about?
So the message here is that you should be focusing on lead generation with both landlords and tenants. Separate strategies are required. You should be connecting with these two groups in a regular and ongoing way. That is why your database and your prospecting activities are fundamentally important to lead generation in commercial property leasing. Tenants and landlords should be segmented within your database, and relationships should be growing with each qualified lead or prospect.
Specialist leasing services for a location and property type are always in demand. Consider your answers to these questions:
What is your specialist service?
What values and opportunities do you bring to the landlords and tenants that you serve?
How can you improve your professional service offering to both landlords and tenants?
Why are you the leasing expert for the area and the location?
How can you market vacant premises more directly and effectively?
An important factor to remember?
It is an interesting fact that your database and the people within it are perhaps the most important factors of leverage that you can apply to the lease negotiation process. If you are growing your database daily and regularly, the landlords and the tenants within your list will allow you to quote any property, vacant premises, or a new leasing opportunity quickly and directly.
If you are struggling in the property market now with leasing activity, take a serious look at your database and start to improve it and grow it through regular contact with new people.
CONTACT SYSTEMS: Keep in contact with all local businesses. You will find that businesses are moving and changing premises for many different reasons. Make sure that they remember you at the right time when it comes to changing location.
QUALITY CONTACTS: Network the tenants in high quality buildings. The tenants in high quality buildings are generally those businesses that can afford better quality occupancy and longer term leases. The commission you achieve from such a high quality property leasing transaction will generally be higher per unit of space under lease. Many corporate tenants today require the services of a tenant advocate to help them find new premises and other properties. You can offer comprehensive and specialised tenant advocacy services.
LOOK FOR CHANGE: Look for tenants moving premises or those that are under some form of business pressure. When you canvass through an area or a location, look for the signs of change. You will see some businesses that are under pressure to relocate. Levels of stock, lack of parking space, lack of storage, and growth of business activities are all signs of a tenant or a local business needing help.
SERVICE OFFERING: Establish some comprehensive tenant placement services. As mentioned before, tenant advocacy can be part of the services that you offer. In other words you will be locating a tenant into a new property. In that case the tenant will be paying your commission and they will be your client for the purposes of the transaction. The larger corporate tenants are generally quite comfortable in seeking out and using the services of a specialised tenant advocate. They are also prepared to pay the necessary fees for service.
FRANCHISE BUSINESSES: Establish contact with local franchise businesses. Many franchise business models focus on factors of location first and foremost. They generally need to locate a new franchise business into a zone or precinct after they have undertaken the necessary market research and study. Make direct contact with local franchise businesses to understand the preferred business locations and lease circumstances that they prefer. They may also share with you the terms and conditions of the typical franchise agreement at they use. The franchise agreement will need to be integrated into the lease terms and conditions that you may negotiate.
So there are some things that you can do here when it comes to lead generation in commercial real estate leasing. Understand the differences between landlord activity and tenant activity. You can offer specialised services in each case.
In commercial real estate brokerage I frequently get asked about how new agents can find the right people and clients to serve in their town or city. The question is so common that I just wonder why those salespeople do not know the obvious or take so long to understand it. The industry is similar to many others; diligent focus and work is required at a personal level to find new business, and when that happens, results occur.
The new business is always out there to attract and convert across sales, leasing, and property management. Yes, I know it takes time, but the diligence and actions of ‘top agents’ always shines through when it comes to finding the best clients, properties, and commissions.
It is my firm belief that you cannot be a top agent without some personal plan of prospecting action that you implement every day and refine over time. Regular actions create habits, and habits in our business change listing conversions and commissions.