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How to Track the Valuable Commercial Real Estate Opportunities

Landmarks

Size and quality are the key elements to watch in commercial real estate brokerage. The larger properties in any town or city are likely to be the best targets for new business and property change or churn in commercial real estate brokerage. That is because quality and location will always drive market interest and activity.

The message is?  You will get more inspections from a good quality property, and your database of qualified prospects can grow accordingly.

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

So how do you get all of this property market trending started?

Research all of the local properties and build a target list of the better properties; who owns them and what are the factors of attraction with each of those properties?

Yes, I know that a good degree of research is required to get the right property facts, but if you sit back and wait for people to come to you, then the new listings that you really need will be hard to find.

Have a good look at your database. Can you match your skills into those properties and the relative owners?

The process?

Assess those properties for each of the following possibilities to see how you can service the requirements of the quality people that you know:

1. Drill down into an active property type for the location – From historic trending you will see what properties are more active than others. Split your analysis into office, industrial, and retail property. What do you know about each property type? Can you work the segments?
2. Tenancy changes – Some businesses have to move, expand, or contract. They usually consider their occupancy options at the end of financial years, calendar years, and also nearing lease expiry or option. Look at the local business community, and contact all the decision makers in all the larger businesses. I say ‘larger’ because you will typically attract a better quality of client and inquiry from larger corporate clients.
3. Market rent issues and weaknesses – Sometimes the rent in a location or in a building will be too high for a business to survive. In watching occupancy issues, talking to local managers, and door knocking local businesses you will find the people that are thinking about handling a property change.
4. Vacancy factors – Local empty tenancies will impact lease incentives. Either way you can work with tenants and landlords that have vacancy pressures or new leasing requirements. Assess the vacancy factors for your town or city on a monthly basis so you know what is available in space to occupy and what may be coming up in any new property developments.
5. Landlord pressures – Some tenants simply do not get on with the property owner or landlord. That discomfort can be a trigger for relocation.
6. Renovation and redevelopment – Properties that are going through change or getting older will be prime targets for tenant movement. Projections on supply and demand will help you move on the older properties and parcels of vacant land that are ripe for redevelopment action.

The deeper that you look into the property market, the more listings and property opportunities you will find. It’s always the right time of year to look deeper into any property market.

Drive and pitch your own real estate business opportunities through direct marketing. That’s what makes a top agent thrive in any location and economy.

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How to Segment and Grow Your Commercial Real Estate Business

city skyline
Segment your commercial property zones.

In commercial real estate brokerage today it is easy to get diverted and distracted when it comes to local area coverage and property specialty. It is wise for you to consider a process of systematization and segmentation that allows for you to determine the priority property types and priority locations that will drive a better commission return and client list.

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

Often you hear of inexperienced agents and brokers taking on a listing that can best be described as low grade or of poor quality; it may be the leasing of the corner shop, or the sale of a redundant property in a below average location. Yes, there are commissions to be had but the commissions are hard to achieve. Don’t make your real estate business too hard or too difficult.

Poor quality listings create little enquiry. They stay on the market too long, and they can potentially waste a lot of time and resources for any broker or agent. Steer clear of these low grade listings and clients. Focus into the better properties and the better locations.

Focus your resources correctly

Certainly everything will sell or lease in most property markets at any time, but the degree of work required in processing a low grade sale or lease can be significant, and those smaller poor quality transactions can take a lot of time and resources.

Typically, you can waste a lot of time in marketing and promoting a poor quality property; the end result will leave you poorer, with a smaller commission and a low quality client. Size really does matter when it comes to commercial real estate brokerage listings and commissions.

So what do you do here?

You need to remember and know where the better quality properties and listing opportunities are located in your town or city and particularly your territory. Focus your prospecting activities accordingly. Always bias your new business focus towards the best properties and the best locations. Quality should feature in your listing bank. Stay away from the listings and the clients that can waste your time.

Do the local assessments

Assess your property market and any potential transaction on the basis of size, location, and income. Remember where you can find the better deals and the better commissions per transaction; focus your prospecting efforts accordingly.

It is a known fact that you will always get more inquiry from a good quality listing. A small number of good quality listings in prime locations will always create more activity and inquiry for you than say 50 open ‘ordinary class’ listings. When you have the inquiry, you can generate the inspections and potentially the negotiations.

Link your transactions and relationships

Everything is linked in commercial real estate brokerage, and the best transactions start from the basis of quality first and foremost. Market yourself in and around quality listings and quality clients.

Be the best solution available when it comes to taking a prime property to the market locally. Make sure those clients and property owners remember you at the right time with their high quality property and its challenge.

Here are some ideas to help you segment your property list and property opportunities:

  1. Every good quality property listing should be exclusively listed. There is no other way to optimize inquiry and price (or rent) when it comes to a prime property in a top location. The exclusivity process allows you to delve into the objectives of the client, the targeted market, and the marketing strategy. In that way you can open up the inquiry base and the inspection potential a lot faster than any open listing situation may provide. You can also optimize the price or the rent as the case may be.
  2. Split your territory or property zone into priority streets and priority buildings. You can then focus your research and your prospecting efforts into those identified opportunities. Get your signboards onto the best properties in the best locations. The exclusivity process will allow your signboard to stand out as real and relevant to the local businesses and property investors.
  3. As you talk to more people in the local area, you will identify successful property developers and active property investors of high value. Generally, these groups will act on a property opportunity if the elements are appropriate and well timed; the direct contact process works well with these groups so take the time to understand who they are and where you can locate them. As high net worth individuals they will wait for the next good property listing to reach the market. Stay in contact so that you can convey the property details directly and confidentially when they are available. An off market property transaction will always be possible if you know the right people in the right way.

So there are some good things that you can do here to find better levels of business activity in commercial real estate brokerage. Develop the system that works for you and segment your property market accordingly. Desperate yourself too far when it comes to property research and prospecting.

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

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Exclusive Listing Strategies in Commercial Real Estate Brokerage

man standing out front of commercial office building.
Focus on Exclusive listings in Commercial real estate brokerage.

In commercial real estate and brokerage, the exclusive listings that you convert and create will help you build market share.  Open listings are generally a waste of time and any results that you get from the open listing process will be a process of luck more than anything else.

In some markets and with some agents, it is common to hear that the open listing process is the only way to build listing stock.  The problem is quite common when it comes to industrial property and with the newer brokerages or agents.  Those agents are quite generic in quality of service and marketing activity.  They have no point of difference to help their listing process and marketing plan.

Your conversions to exclusive listings will elevate when you are working as a property specialist, and are regarded as the local expert to solve the client’s property problem.  It is very difficult for a client or a prospect to walk away from or ignore the services of a top agent.

Generic agents take on open listings just to get the stock; specialized agents take on exclusive listings only.  If you want to improve your market share, you will need to practice your processes when it comes to pitching for an exclusive listing.  You will need more exclusive listings.

To improve your conversions for exclusive listings, here are some ideas:

  1. To convert more of these listings, you do need to feed your contact pipeline with a systematic prospecting process.  Every day connect with new people that you have not spoken to before.  Over time, repeating the connection process with the same people will allow you to convert more meetings and make more presentations.  On average, it takes about three or four telephone calls to get a meeting with some property owners and property investors.  Establish your call contact system, and implement it every day so that your pipeline of opportunity is growing.
  2. There are two reasons why you will get an exclusive listing.  The first will be that you are regarded as an expert in the local area, and the second will be that you are regarded as a marketing specialist.  It directly follows that you will need to build your brand and prospect model accordingly.  Every pitch and proposal that you make should be structured with those two issues in mind.
  3. A good quality property will always create more enquiries from your marketing efforts.  Top agents will usually focus on the best properties and the best clients.  Those top agents walk away from poor quality listings, open listings, and unrealistic clients.  Protect your time and your agency procedures as part of that process.  Don’t take on a listing that you regard as unnecessarily difficult and unrealistically priced.

As mentioned earlier, the exclusive listing process will help take you to the top of your market with a commanding market share.  Practice your pitch and your proposals accordingly.  Role-play your presentations in each sales meeting so that both you and the team can provide special services and solutions for the clients that you serve.

You can get more tips like this in our Newsletter for Agents and Brokers.