If you have chosen commercial real estate as your preferred career, you have likely done so for a reason. Perhaps someone has introduced you to the profession, or you have seen what some agents do and achieve in their career and you want to get similar results.
Many ‘Roads’ to Take in Commercial Property
Certainly there are many ‘roads’ of focus and activity to take in commercial real estate brokerage; all of those ‘roads’ are specialized in some way for both property type and location. All of those ‘roads’ involve client contact, personal performance, commissions, and listings.
You have to be a person that will focus personal effort into all of those things, and that is certainly the case if you want to get more or improved results from your industry and from your efforts over time.
You need a plan as an agent or broker, and that plan when started can be refined over time. The commissions come to those that work with professional skills that are improved over time. Are you that person?
Get More Real Estate Traction and Focus
Here are some ideas to help you get more traction in your career as an agent or broker, and attract better levels of commissions:
Specialist skills – choose the property types that you understand and can match your professional skills into. Boost your skills through practice. There is no point specializing in something that sells or leases in low volume. Look at the end result of what could happen in your property specialization. Improve your skills through deliberate effort.
Local area – choose the local area that shows the best possibilities for your efforts over time. Review the streets and precincts. Look at the buildings and investment properties in the chosen location.
Owners, Tenants and Business owners – you can work for clients in all 3 of these categories, but in saying that, each category requires understanding and unique qualities of service. Given your location, how much business could you extract from the segments? You could be an agent for landlords, tenants, buyers, or sellers; match your services into the segments that you prefer and then prospect the segments comprehensively in an ongoing way.
Referrals – when you know a customer or client with reasonable familiarity, the referral process gets a lot easier. Encourage your clients to tell you about other people that they know who may be interested in property investment.
Repeat business – some clients will transact commercial property in a number of different ways over time. That is especially so if they own multiple properties or a portfolio. Review your clients on that basis.
Quality properties – work with the better quality properties as they will attract more inquiry and that will lead to a better churn of listings and properties. As you work with more listings piggy back your listings and inquiries so you can move an inquiry from one property to another and eventually find the right solution for the buyer or tenant.
A quality database – review the database software that you use an understand its potential for you in finding the right people to transact real estate in some way. Spreadsheets don’t offer a complete level of coverage; the larger that they get, the more difficult it is in finding the right people to match into a property listing or inquiry.
There are some special things that you can do here with a listings and commissions focus. If commercial real estate is your career, then the elements mentioned here will be vital to the outcomes that you seek. Refine them and improve them over time. Top agents are created and shaped over time; luck has nothing to do with the process. Your career and its results are influenced by deliberate choices and refined actions.
Many times I have seen brokers and agents change brokerage and property market location thinking that the change will bring them more opportunity with listings, commissions, and clients. Whilst that can sometimes be the case moving to that new brokerage, do not overlook the issues of personal performance.
Many agents and brokers struggle with the requirements of personal performance in commercial real estate. They are commonly not prepared to do what it takes, or disciplined enough to take the necessary steps with personal performance; they fail to develop the correct disciplines to improve their market share personally.
Like it or not, the results that you achieve in commercial real estate are largely personally generated. The brokerage and the real estate brand that you work for can only support you in a minor way with a small amount of enquiry and market share. Most of the sales and leasing opportunities created largely come from personal efforts and prospecting activities. Your database is so important in the process.
Know Your Personal Performance Issues as a Broker or Agent
Before you consider moving brokerage, have a serious look at what you are doing every day with prospecting, marketing, database activities, and your client list. Those four factors will have a lot to do with the results that you achieve. It is a lot easier to improve personal performance than to waste significant time in changing brokerage and a new sales and leasing territory.
Here are some ideas to question if you must move to a new location as part of a new brokerage structure.
Location – Understand the location and the territory that will be yours to farm and extract listings from. Get the history of the area when it comes to sales and leasing activity. Determine how much more new business can come from that area.
Other Agents – Consider the amount of competition and other agents in the location. Some of those agents will be well established and top performers in their own right. Would you be able to compete against those agents and on what basis? You will need a strategy of approach when it comes to marketing yourself in a new area.
Sharing Commissions – Look at the commission splits that apply to any sale or lease transaction that you create. The commission splits are likely to be influenced by the administrative costs and support services provided by the brokerage. It is far better to work for a brokerage that provides a comprehensive support structure, thereby allowing you to get out into the marketplace to generate leads, listings, and commissions.
Property Specialization – Determine if and how the brokerage will allow you to specialize in a property type within a defined geographical area. Can you be given exclusivity to work the patch and the property type?
Database Ownership – Who will own your database and the information contained in it? Given that you will be loading the database with fresh leads and opportunities, who will own that data in the situation where you want to leave the brokerage and move on? It takes months if not many years to establish a good database of buyers, investors, and tenants. In an ideal world, that database should be your property in all respects. Ask plenty of questions when it comes to the ownership of this valuable information.
Operational Costs – There are certain operational costs to be considered in working as a broker or an agent. Desk costs, telephone, administrative support, marketing materials, and stationery are commonly charged back to the agent or broker. Understand how these things work and how they will impact your commissions earned.
So the message here is quite clear if you are considering changing brokerage or location. Get all of the facts relative to the market, the brokerage, and the location. You can and should also assess factors of personal performance to ensure that you are fully committed to prospecting, client contact, and growth of market share. That’s how top agents rise to the pinnacle of the market in their location.
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