When it comes to leasing commercial and retail property today, franchise tenants are a special opportunity for property agents. These franchise tenants already have a proven business model, established business brand, and good track record. On a regular basis those franchise tenants are going to be looking for new premises as part of the expansion of their network of operations.
Landlords and Commercial property agents should work closely with these tenant types. To get that process underway, visit surrounding suburbs and towns. Look at the established franchise brands in all property types. See if those brands are already located in your territory or if they would consider a move or an expansion in that way.
So we need to set some rules here:
Franchise tenants know what they want by way of premises given that they understand their customer profiles and ideal premises configuration and location.
The leases used in these circumstances are likely to be a variation of the standard lease used by the franchise tenant.
The lease term will need to match the duration of the franchise agreement.
The branding and signage of the tenancy will require consistency that suits the property but also attracts customers. Brand consistency is really important when it comes to premises choices and occupancy with franchise tenants
Commercial and retail real estate agents can do very well in working with this segment of the market. Get to know the franchise groups and what they are looking for in property type and location.
Here are some questions to ask and issues to work with that can help you with this type of tenant:
What type of property best suits their operations now and in the future? Pay particular attention to expansion and contraction needs. The tenancy may have specific challenges when it comes to ongoing occupancy within their franchise agreement.
What locations are best suited to growth of trade and business? In can be that main roads or highways have something to do with property choice. Property and business exposure can help the franchise group within its branding.
Where will their customer be coming from and why? You will need some local population and business demographics to help you here.
Check out the competitors for the franchise tenant. Whilst the tenant you are working with will already have a good idea about their competitors, you also should seek to understand those market factors.
The rental structure for the tenancy will be a balance between the requirements of the landlord and the cash flow structures of the franchise group. The franchise fee will be an added cost in the viability considerations of the business in occupancy. The landlord will still want a market rental for the premises based on prevailing market conditions. Most franchise groups will take between 5% and 10% from the gross trading figures of the tenant. It is wise to ask the tenant for their cash flow projections based on occupancy costs, expected levels of trade, and local business conditions.
You can do very well as a commercial or retail property agent when it comes to working with these tenancy types. It is simply a matter of understanding and specializing with franchise brands. You can then identify the right properties that suit their business activities and projections.
In commercial real estate agency you need strict daily procedures and market knowledge to help you build market share. When you start your career in the industry it is very easy to develop poor or incorrect habits that can threaten to derail your career. This is certainly the case if you are modelling your activities off some other agent that is less than professional or somewhat ordinary when it comes to business skills.
Time in the industry does not always build the skills of an individual agent or salesperson. Personal effort is required. Learn and grow your skills and knowledge in every way possible.
It is wise to watch and assess the activities of the best people in the market. Find out what they do and why. Check out their marketing and prospecting skills; see if there is something that you can replicate.
To help you in building your commercial real estate business and listing focus, here are some tips and ideas to develop:
Define your sales territory by location and property type. You can then focus your prospecting into a zone on a ‘street by street’ and ‘property by property’ basis.
Organisation is the key; get a good database to help you with tracking information and leads.
Your ability to prospect will greatly impact the results that you get in listings and commissions. Top agents are great prospectors. This is a very specific skill and it can be refined to suit your market and territory. Practice in dialogue is the key.
Create a marketing folder that contains everything that you need in the field when talking with sellers, landlords, buyers, and tenants. You will need ‘visual’ material including charts, photographs, and comparable properties. Include with that a selection of listing forms and marketing proposals.
Create a set of 3 typical marketing strategies for the property types you work with. They can be used with the clients and prospects that you pitch your services to. The clients that we work with like to see and compare before they make choices in marketing and listing.
Start a weekly assessment of comparable properties, signboard counts, and current internet listings. From those facts you can check out the priorities when it comes to leasing and sale requirements from the market.
Quality listings will always give you better inbound enquiries from buyers and tenants. Assess you territory or sales patch for the best property locations and businesses. Those zones should contain the property targets and property investors that will help you with reaching market dominance.
Talk to more people every day. Always take the opportunity to fill your contact cycle and database with new prospects.
The commercial real estate industry has plenty of opportunity for those agents that work to a system and focus on growth of market share. Take charge of your career and get your systems and action plans in place.
In commercial real estate agency, the marketing process that you choose today will have significant impact on the outcomes that you require with new inspections and fresh negotiations. Every property that you take to the market should be carefully structured into a targeted marketing campaign.
It is interesting to note that most commercial real estate markets change throughout the year and will have seasonal selling and leasing cycles. This then says that the timing process and the method of marketing that you choose for a property will be quite important and seasonally adjusted.
Here are some marketing tips to help you with promoting a listing and optimizing the enquiry that you achieve from the promotion.
Review the property with the client prior to forming any opinion on marketing or promotion. Walk around the property together to look at the strengths and weaknesses that the property provides. Ask the client about the history of the property and the reasons for their actions today in seeking a sale or a lease. Get to the key facts of client motivation today.
Given the previous point, you can now relate to the other properties in the market that may be competing against the subject listing. Show the client some of those other properties and provide details of current marketing efforts, prices, and rents. Your new listing needs to be well positioned in comparison to other listings for attracting better enquiry. That can very well mean a particular method of sale or lease and choices about marketing.
At any given point of time, the enquiry coming into your office relative to different property types should be tracked. The tracking process will help you with conditioning clients in the listing and marketing process. When you understand what is working to get more enquiries, you can take better actions with each property type.
Will the property require any preparation work prior to marketing? The first three or four weeks of any marketing campaign are quite important. Your enquiry rate needs to be optimized for that time frame. Any hurdles or obstacles that can be seen in the property when inspecting should be removed prior to commencing the campaign.
Clearly define the target market for the listed property. Ensure that the choices you make in promotion are matched to the target market in every respect. Exclusive listings require much more effort when it comes to promotion. They also have a significantly higher conversion factor to a successful transaction. On this basis you should be encouraging the client to choose the exclusive listing process for their property.
Today we are blessed with the technology and the resources that will help us promote a property listing directly and effectively. Package the listing correctly for the client so that you can optimize the inbound enquiries for the property, and therefore gain more inspections and negotiations.
In commercial real estate advertising and marketing, you need to carefully consider the channels of media that you use for your agency and for your listings.
On that basis you should also be tracking the advertising responses that you achieve in all the different channels of media. Some will be more relevant than others for the listings that you take on and your region.
This then says that your promotional activity will have a specific focus of encouraging interaction with the buyers and the tenants that are in the market. You will also be encouraging interaction with the sellers and the landlords that are looking for property assistance. Tracking and measuring becomes a very specific process to help you see what is working from a promotional viewpoint. How and why are people contacting you? That is a really important question and key fact to monitor.
So your advertising and marketing efforts will encourage results and feedback from the right people looking for property assistance. They will come to you through various systems and processes that should and will all be tracked.
Here is a list of the things that should be utilized in most agencies and tracked for promotional feedback:
Out of every campaign for a quality property, you will get people looking for more information to be sent out. Each exclusive listing should be tracked for this. A follow-up telephone call should occur in each case after the information packet or email has been sent and received.
Understand the number of inspections that have occurred within property types and with particular listings. You will soon see the properties and the regions that are more popular than others.
Keep a tally of inbound telephone calls that apply to the agency and also to each listing. The same can be said for particular salespeople as some will be more successful than others when it comes to creating enquiry.
With some larger and more exclusive properties you will be sending out information memorandums to qualified prospects. These requests should be tracked and then followed through.
Each day you will receive requests via e-mail for property information. Keep a tally of email requests for all of your campaigns and exclusive listings.
Your newsletter should be sent on a regular basis to qualified prospects. Track the growth of your newsletter subscription list on a weekly and monthly basis. Keep in personal contact with the people on your list.
Put an offer on your website for a free report relating to the local property market. That free report will or should encourage subscribers to join your newsletter. Track the activity and the requests for this free report. Ensure that the report is of relevance and attraction to the local area and property market.
Track the number of website hits that you are getting each week. You will find that certain days of the week will be better for website marketing and property listing. Understand the differences between new visitors and repeat visitors to your website. Look at the bounce rate that applies to people coming in and moving around the pages of the site.
Track the numbers of people involved in your social media activity. You should have a social media platform for the agency and also for the individual salespeople in your team. It is questionable whether you will actually make a sale or lease as a direct result of social media usage. Social media is more effective as a community involvement tool. It helps people remember you for the future when they are ready to lease, buy or sell commercial and retail property.
You may add to this list based on your property type and your location. You can however see the importance of tracking numbers so that you can see and determine the things that are working for you. When something works well as promotional tool, it should be repeated or utilized on a regular basis.
In commercial real estate agency, it pays to role play and personally practice your listing presentations. Now it is known that many agents dislike ‘role play’ immensely, but it is still a fact that those that regularly practice are better agents and can convert the listings at a greater rate than their competitors.
When your income and your listings are at the centre of such an important process, wouldn’t you think that the matter is non-negotiable? With role-playing you can improve your client contact, sales pitch, and presentation skills.
Here are some facts that can be put into your sales pitch and listing presentation practice process.
Understand the client as to property priorities and pressures. They will have some key things that must be satisfied for a listing and subsequent sale or lease to occur.
Knowing the property prior to the presentation is essential. The property will have factors of location, improvements, presentation, income, and expenditure to be considered. Take plenty of photographs around the property to use as a simple photographic presentation on your laptop computer or tablet. Photographs can help a lot when it comes to connecting correctly with clients as you talk to them about the property.
Market facts and information should be checked and up to date. The client will have some perception of the prevailing market conditions. Invariably most clients really don’t have any understanding of the real facts that have the impact on their property.
Competing properties will be of concern, considering that there are so many properties unsold or vacant currently. Provide the client with clear information relative to the other properties located nearby and that remain on the market.
Show the client what is happening when it comes to inquiry, marketing, and inspections. Give the client some strategies that avoid the problems identified with the other listings.
A successful property presentation is really all about providing the right information in a confident way; showing the client how to move through the property challenges that they currently have. You can use a Gantt graphing process to show them the clear stages of property marketing, inspections, and negotiation.
It should be said that some properties are quite unique when it comes to the listing presentation. That is certainly the case when it comes to larger office and retail properties.
The complexity of the property will require an in depth evaluation prior to any sales pitch. Top agents tender specialise when it comes to property type and location. This helps the conversions when it comes to the listing presentation.
Start practising your sales pitch and listing presentation. Role play the process as part of your weekly team meetings. Every salesperson in the team can learn from the experiences of others.
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