In commercial real estate brokerage there are plenty of things happening in most property markets in a continuous way.
Businesses are looking to change or relocate their activities to improve corporate performance and income generation; property investors are looking to expand or change investment portfolios. On that basis there are some good things for every broker and agent to tap into providing they spend the time in looking for the indicators and the pressure points of the local property market.
Spend the time in researching your local area and the properties contained therein. In a logical and direct way review the property market, the changes, and the churn factors that are likely to bring about new business opportunity.
In this audio program John Highman talks about the importance of understanding your property market and the things that are changing across sales, leasing, and property management activities. When you know what is happening within your region and within your targeted property types, you can position yourself for further commissions and listing opportunities.
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.
When you work in commercial real estate sales and leasing, the amount of market knowledge that you can gain in the local area will give you a significant advantage in any listing situation. The property market knowledge that you need is relating to current transactions both in selling and leasing. They are interrelated and will have bearing on each other.
Get to the Sources
The best sources of market intelligence come from:
The local news media
Other property listings and the time that they take to sell or lease
Signboards placed on properties denoting market share and coverage
Sales and leasing outcomes
Zoning and demographic changes in the local property market
Buyer and tenant activity by property type
Feedback from Sellers and landlords
Feedback from parties as they inspect properties
Competitors activities with the listing property
Time on market
Methods of sale and success rates
The best salespeople in the industry are not only good sales, but also very good at leasing property. It is the leasing knowledge that makes them exceptionally good at packaging a sales deal at the right time and in the right way.
So the best sources of market intelligence come from the actual deals being made and current listings, as you talk to plenty of people. That says that the salespeople, agents, and property valuers working on commercial property should be sharing information regards property deals. In only that way can the true impression of market price and market rental be maintained.
All of this information allows you to determine the strengths and weaknesses of the market as they apply to each property type. That can then be a significant advantage as you create the marketing campaigns for each property promotion. It also helps the client to commit to your services based on experience and proven evidence.
A retail shopping centre is a unique property type and there are a few things to look at and understand if you are to take a retail property to the market in sales, leasing, or project activity. Each of these three retail categories will give you trends to capture and monitor as part of your […]
When you manage and or lease a shopping centre, the vacancies in shop leasing can be a real drag on shopping centre performance and retail sales, particularly so over time. It takes time to boost shopping centre performance, and similarly so to remove leasing and tenant mix problems. Any current or upcoming shop vacancy in […]
So, the equation to retail and shopping centre property performance goes a bit like this…. Strengthen the tenant mix so that all the demands of the customer base are encouraged and served with a variety of goods and services Attract customers to return to the property frequently for all of their retail shopping needs […]
Every broker or agent should have a sales plan in brokerage. That plan will give momentum and focus to listing growth and client contact. In this video today, we share some specific ideas behind creating a successful sale plan in your career. Something that you can build momentum around. Here is the video:
In today’s commercial real estate podcast we share some ideas across some very practical and useful strategies in sales and leasing. If you are wanting to boost your results as an agent or broker, there are plenty of things in today’s program that you can do locally in your town or city. There are five […]