The fact of the matter is that leads are always available to those people that look and question the events, facts, and people in the property market. Asking questions at the right time, and noting the changes in the property market will help you find your next opportunities for listings and commissions.
In this audio program, John Highman, Commercial Real Estate Coach, talks about the different ways to generate leads for listings and property transactions.
In commercial real estate brokerage, you can find plenty of opportunity locally when you delve into the factors that support and drive the business community. When you understand the business community, you can turn that understanding into property leasing and sales activity.
Property Investments thrive and change when the local businesses are growing and relocating. As part of your brokerage prospecting model, get to know what businesses are doing and what they are thinking when it comes to growth and location.
Don’t be ‘Average’
Far too many agents and brokers wait for the listing opportunity to come to them through some inbound telephone call to the local real estate office; that is the slow way to grow market share.
If you want to get anywhere faster in our industry, then get out into the property market daily and talk to local business owners.
Find out what they are thinking about the pressures of their business and industry segment; some business segments are more active than others and that is what you can work with.
Ask questions about:
More or less space
Head office changes or merges
New businesses moving into the location
Improvements serving the business needs
Access to transport or end user markets
Lease duration or end of lease
The decision maker involved in finding new business locations
As an extension of this idea, you can work with particular types of businesses such as:
Bulky goods warehousing
So when you put these variables into a ‘local area equation’ of prospecting for new business, you can ask some valuable questions about business intentions, shifts, pressures, and requirements. Don’t be afraid to talk to new local people.
Local area business
Most of your new business will come from the local area. You want people to remember you so get out into your zone or territory and talk to the right people in a positive and direct way. Do these things:
Create a list of streets for your location where the better businesses are located.
Segment the businesses in size or type.
Research the leaders of each business before you make the call or contact.
Look for any property pressures in the location by travelling the streets and looking for the tell-tale signs of pressured property occupancy.
Somewhere in that owner/occupant awareness, you will find property change and churn requirements. Grow your property market on the basis of local area awareness. Talk to more people every day and build your business directly.
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 today there are many opportunities to tap into. In any period of 12 months, there will be changes to the sales and leasing aspects of the market that can open up into new listings and new clients.
Brokerage prospecting models should always focus on quality listings and quality clients. The word ‘quality’ is quite important here in that you will always get better inbound enquiry rates from quality listings.
It directly follows that a sales or leasing transaction successfully completed will give you the opportunity for repeat and referral business. It is also the case that those clients that have had business with you previously will give you leads and opportunities to tap into if you ask the right questions at the right time.
Consider the following rules that can apply to a referral lead generation system:
If you consider the last period of two years as a point of reference, identify the clients and prospects that you have successfully served during that time. Open up the contact process with these people again and seek a personal opportunity for a meeting and market related conversation.
You cannot ask for referral business over the telephone. Arrange a meeting in suitable circumstances where you can provide the client with a market update. As part of that process, ask questions about their current property interest and involvement, together with the appropriate referral questions.
Within your brokerage, you are likely to have a number of clients that are serviced in an ongoing way. That may be through project leasing or property management services. Keep in regular contact with these people as they may seek to adjust their investment portfolio. They will also know other property investors that may be leads or referral opportunities for you.
As part of your existing prospecting program, you should know plenty of local business owners and proprietors. Some of those people will own local investment property, or may seek to do so. Understand the intentions of these successful business owners as they consolidate their financial nest egg.
Track and measure all of the recent sales and leasing activity through your region. That information will be quite valuable when it comes to establishing new meetings with clients and prospects. It is not hard to get a meeting when someone respects your skills and relevance as an industry specialist.
As part of your weekly brokerage sales meeting, insert into the agenda the topic of referrals and leads. That will focus the agents and brokers on to the issue as part of a regular reporting process.