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Commercial Real Estate Agents – Networking Local Businesses for Real Market Opportunity

commercial real estate agent looking to the sky
Local business owners are a great source of leads and opportunity for commercial real estate agents.

When you work in a commercial real estate agency you can get a lot of valuable information from the local business owners.  For this reason they should feature in your cold calling efforts every day.

Many agents will focus on just property owners as part of their networking process for new business; whilst that in fine, the reality is that the process is hard and slow.  It takes a lot of time to find the right property owners and chase them down for a conversation.  I am not saying that you should not do it; I am just saying that you should mix it up a bit and add the local business owners into the networking process.

Talking to new people every day is part of building your business and your market share.  When you do this regularly you will find that the property market and opportunities within it will open up for you.

How do you do it?

So how do you get to these local business owners?  The easiest process is in using the local business telephone book.  You can also door knock the businesses locally on a street by street basis.  Either way the process is easy.

Many commercial real estate salespeople tend to analyse the process of networking far too quickly and critically.  They think that they should get results from just talking to just a few people.  That is not the case.  On average, you do need to talk to perhaps 40 people to get one opportunity.  For this very reason, the networking process should be a daily event and continue throughout the year.  Keep yourself organised as you speak to new people; gather any leads and information into your database.

Not interested?

Many of the people that you talk to will not be interested in commercial real estate. For this reason, you should simply be asking a few questions to see if they have a need or a future interest in commercial or retail property.  There will always be plenty of business owners and property owners to talk to providing you get yourself organised and talk to lots of new people.

Commercial real estate is a specialised part of the property industry.  Landlords, tenants, and business proprietors will need your assistance from time to time providing you show them your relevance and provide local market knowledge.

When you establish the initial connection with new people, and have satisfactorily qualified them as relevant to you, keep the contact open so they can find you when the commercial real estate need arises.  You should be networking all of your contacts at least once every 90 days.  That is the secret to building market share.

Through this connecting and networking strategy, the following information will help you with future business opportunities.

  1. The business owners will tell you what is going on in the local area.  They will likely know the intentions of some of their neighbouring businesses when it comes to property activity.  They will also have observed changes and pressures that exist with their neighbouring businesses.  Asking the right questions will help you here.
  2. Some of those business owners will be tenants in occupancy.  For this reason they will one day require potential relocation and or market information relating to rental and leases.  Building a relationship over time with these people will help you tap into that opportunity when the need arises.
  3. Some of those business owners may share information with you regards the landlord that owns the property in which they are located.  That can then short circuit the process of finding the property owner.
  4. Some businesses today will own the property in which they are located.  Over time they can have pressures of occupancy, expansion, contraction, or relocation.  They may also consider a sale and leaseback strategy.  You can help with all of these things.  It is simply a matter of building the right relationship.

Sometimes we tend to complicate the networking and cold calling process.  It is not hard or difficult, it is simply a system.  When you understand that, and develop your own processes within the system, you can create massive opportunity in your local property market.

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Commercial Property Agents – Set Your Targets in Sales and Leasing

businessman giving thumbs up signal
Start to focus your career in commercial real estate agency. The results are great in any market providing you work hard on the right skills.

When it comes to working in the property industry, commercial real estate can be very special and unique.  The knowledge required to be an expert in your field is quite specific.  For this very reason it pays to specialize in a property type and a location.  All the ‘top agents’ do exactly that.

You can be a sale and or leasing expert, or perhaps a commercial property management and leasing specialist.  The important thing is that you are very good at what you do and you can talk to the service you provide in a comprehensive way.

I should also make a special note here about ‘retail property’; retail is much more specialized than office or industrial property.  If you are a true ‘retail expert’ then focus on the special issues of retail property performance such as tenant mix, leasing strategies, and increasing sales performance for the retailers.  All of these things lead to a great property performance.

Our clients like to deal with ‘property experts’ that have a very good command and control of the market.  Whilst your office can have a good marketing position and perception in the local area, you personally should also have the same.

Here are some tips to help you get the right focus in your career and steer the process forward.

  • Find a top agent or mentor to help you with ideas and focus.   Experience is a great thing and those that have been working successfully in the industry for a long time will have ideas that they can share with you.
  • Watch the good people in the industry to see what they do.  Some of your competitors will be better than others in market share and closed transactions.  Some salespeople in those competitor businesses will be ‘top agents’.  How did they get to that position and what do they do every day to build their market share?  Look at their marketing efforts and their property speciality; are there any differences in what you are doing?  How can your mirror their ‘good’ processes?
  • Systemise your day so you stay on track and move ahead in your plan.  The only real resource that you have in the industry is the time that you use every day.  Don’t waste a minute of time on things that do not matter.
  • Personally create a database that grows through your daily prospecting efforts and directed action.  You will capture a lot of information in that database that can take you forward into new property opportunities.  The capturing and recording of the right information is a personal skill; ensure that you do all of this work yourself so you take ownership of the information and use it to the fullest of its circumstances.
  • Avoid poorly organised salespeople that make excuses.  There are a lot of these people around.  Negative comments and ideas from these people do nothing for your momentum and market share.  Whilst the property market may appear slow or sluggish, don’t let the comments of ‘poor performers’ hold you back from trying something new and relevant.

In any property market there are always opportunities to be captured.  In most cases your results are driven by the number of relevant people that you know and maintain contact with.  It always comes back to who you know and how you keep up the contact.

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Commercial Realtors – The Secret to Better Market Share

business men outside office building
Take the right steps to build market share in commercial real estate and property.

Here is an interesting question to ask any commercial real estate salesperson.   ‘What are you not doing today that you should be doing?’   In the answer that you get you will likely find the big problems that are holding them back from achieving more from their market.

Here are the things that most commercial sales people do not do enough of:

  1. Prospecting for new business and new clients.
  2. Inspecting the competing properties so they know what they are up against in the local property market.
  3. Keeping in contact with those clients that have the really tough listings to market and sell or lease.
  4. Touching base with all the local businesses on a daily basis to see what property ‘needs’ they may have in the future.
  5. Personally taking each property listing to the local business community through a street walking cold canvassing process.
  6. Finding and connecting with new property investors that may want to expand their property portfolio.

I could go on but I think you get the message here.

Step Up to the Challenge

Salespeople avoid the things that are hard or challenging.  Reluctance soon sets in and the salesperson is then about the same as all the others in the local area.  I don’t know about you, but being as good as the competition doesn’t thrill me too much; better is a good target and a benchmark.

Many, if not all salespeople join the commercial real estate industry knowing that the opportunities are huge in both income and lifestyle.  That fact is always there in all markets, good or bad (even now).  The good results that we get are driven from the actions that we take.  It is the big and important things that we do not do each day that hold back the results that we get.

So opportunity exists right now today in your property market; you just need to tap into it.  The best place to start is with the really important things that you are not doing.

Some underperforming salespeople just move from agency to agency every 18 months or so, thinking that the move will solve their market share and listing problems.  Other salespeople of similar type stay with the same agency and just go nowhere special when it comes to listings and commissions.  The income ‘pain’ just goes on. 

Enough is enough!  It is time to make a change and take charge of the future.  A better time in the industry is available for all; the key lies within all of us.

Top agents take charge of what they are doing.  They move strongly ahead with a consistent plan of attack.  They are prepared to take the difficult steps forward every day.   Soon they set new habits as part of taking action and dominating the property market.

In just a short time things can change in a major way.  Are you up to the challenge?  Are you ready to rise to the top of your market?  Now is the time to get started.

Need more tips to help your commercial real estate business?  You can get free tips at our website right here.

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Commercial Realtors – Marketing Proposals that Impress Clients and Prospects

business man and woman looking at laptop
Make every proposal a top document with plenty of client focus.

In commercial real estate you will be doing proposals for your clients and prospects on a regular basis.  You would think that being asked to do a proposal is a good thing; in some ways it is, although many a prospect will ask you for a proposal simply to get rid of you.  The hard truth of the matter is that many a prospect is going to use your proposal as a reason to choose another agent to sell or lease their property.  Here are some tips from our Bulletin this week.

If a prospective client asks you for a proposal, and you are meeting with them when they ask the question, respond by saying something like this:

‘Why would you want that?  Have I not been clear and helpful in the discussion here with you today?  What is it that you need more information on?’

Top agents know that the best time to sign up the client is ‘now’; not at some later time when ‘they have had time to think about it’.

So the request for a proposal is actually a strategic way of not making a decision on the spot.  What are the chances of agreeing to your proposal later when you give it to them?  Probably it is no better than 20% in most cases.

If you do decide to create a proposal for the client, do so understanding that the client is genuine in the request and that you will not be wasting your time.  A good proposal to sell or lease commercial real estate will include some or all of the following:

  1. A clear statement of the clients requirements to sell or lease the property
  2. A description of the property or the tenancy so that there is no misunderstanding in what is intended and what property it applies to.
  3. A summary of other properties in the local area that are regarded as competing with the listed property.  You will need to include a statement that describes the prices and rentals of those other properties.
  4. A description of the local property market as it exists today, taking into account the factors of supply and demand.
  5. The factors that will make the property relevant to the target market in the local area.
  6. A marketing brief as to how the property should be taken to the target market.  You will also need to supply samples of advertising and content that will apply to the property as you know it.
  7. Expectations of price or rental given the prevailing market conditions.
  8. A resume of issues that should be attended to before the property is taken to the market
  9. A visual strategy to the process of moving forward.  That can be a Pert or Gantt model that summarises the sale or lease process in stages

The list can be expanded subject to the prevailing market conditions and the property type.  If you are going to do a proposal for the prospective client, then make sure it is a good one.  First impressions are everything.  Get some more tips in our Bulletin.

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Commercial Property Agents – Internet Marketing Tips to Build Market Share

business woman using laptop computer
You can improve your internet profile as an agent.

When you work as a salesperson in commercial real estate, you really do need to build your personal profile in the local area.  That profile needs to extend to property investors, business owners, property developers, and professionals associated with those groups.    Here are some tips from our Newsletter.

To build your profile takes continual effort in a number of different ways.  The most obvious ways to build your market share and profile would be through the following:

  • Direct connection with the key people that own significant property in the area
  • Meeting with the business owners that occupy significant properties and run significant businesses in the local area
  • Cold call prospecting and marketing on a daily basis throughout your precinct
  • Door knocking all of the local business proprietors.

Many salespeople overlook the value of the internet to their profile and business activity.  Sure they may have some listings on the internet but rarely will a salesperson do anything more than that to lift their profile on the web.  So there are some things that you can do here.  Have a look at these:

  1. You can write articles about property trends and types in your local area.  What it does is it helps consolidate your name as a local expert.  One of the best article sites to do this is www.ezinearticles.com
  2. Create a personal business blog on either ‘Wordpress’ or ‘Blogger’.  The blog process is free and will be yours to run and own.  Everything you say is of your creation so be professional at all times.  This blog process allows you to write about the area in which you operate and the property market.  You could also talk about different ways of buying or renting commercial property today.
  3. Use email newsletters with auto responders to connect with your clients.  The cost of this is very low and initially you could get a free account with a newsletter service such as ‘Mailchimp’.  They have templates and lots of instruction to help you get underway.  You could set up an auto responder to connect with your clients monthly or more frequently.  You can personalize the whole thing.
  4. Social media tools today are numerous.  Many of them are at no cost, but they do require you to take a strategic approach if the target of contact is commercial real estate.  Initially the best to use would be Facebook, Linkedin, Twitter, and Googleplus.

So the opportunity here is for you to move to the top of your market with a great internet profile that is a combination of the listings that you have currently, but also these other very effective strategies.

Given that most of your competition will likely only do the Social Media part of the equation at best, there are many other things that you can do yourself to step up higher in the internet as a commercial property agent of relevance.

Need some help with building your profile?  You can get a lot of good information from our parent website http://www.commercial-realestate-training.com/

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Commercial Real Estate Agents – Gathering Market Intelligence

office buildings in city
Know all the buildings and the property owners.

The intelligence-gathering efforts that will help you build opportunity in the market should include analysing your commercial real estate marketplace.  The property sales and leasing market is always changing.  Seeing those changes early and adjusting your efforts or focus will always be the best strategy:You can then make choices on which you will focus:

  • What are my market segments? How do the segments differ?
  • Does local property needs differ in sales and leasing?
  • Are some property segments destined for obsolescence because of changes in the market?
  • Which segments within my niche are prosperous and under growth? Are any of them recession-proof? Recession-sensitive? Which are doing poorly? Why? You should always be in tune with financial and business publications, their data, information and value.
  • Which segments of my niche are most price-sensitive and competitive? In this case you should identify the other agents that you are up against and how they impact your activities and listings.
  • Which are most profitable property types for you to list and work on?
  • What trade journals or publications in my market niche are the best for marketing, the most comprehensive, and the most objective for commercial sales and leasing?
  • Subscribe to every relevant publication and read the papers daily.  It is remarkable how much local property information you will get from the local paper.
  • What can I learn from our own competitors and peers that can help me serve the needs of my niche? Your prospects may have uses for commercial real estate sales and leasing that you never previously thought of.
  • Are any of my real estate competitors exhibiting any behaviour in the property market that seems strange or unusual? If so, what are the true reasons behind it?
  • What must I do to become a recognized expert within my commercial real estate niche?  What should an expert cover and offer to the local property owners and investors
  • Do you understand the differences between sales, leasing, and property management?  Can you cross sell your services in each discipline?
  • Are there any certification mechanisms or awards for which I can qualify? Associations I need to join? Groups in which I might need to assume a leadership role?

Having this intelligence information on your commercial real estate market can be likened to knowing the rules of the game.  When you know the basics, you are ready to gather scouting reports on other teams in the “ big league”.

We need the truth when gathering market intelligence.  Whenever we have accurate intelligence on our competitors, we can leverage our own strengths and weaknesses against theirs and apply the most concentrated, effective pressure we can muster.

Need more ideas to help your career in Commercial Real Estate?  Sign up for our Newsletter here.

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How to Map Your Territory for Commercial Real Estate Prospecting

In commercial real estate sales and leasing, it pays to map your sales territory so you know how to optimise the advantages contained therein.  This becomes even more important when you have a large territory to cover.  Here are some tips from our Prospecting Newsletter for Commercial Real Estate Agents.

Here are some tips regards identifying and tracking the activity in your sales territory:

  • Get large maps of the area covering the entire potential sales territory.  At the extremities of the area, define the road boundaries that will be at the very end of the territory.  You cannot sell and lease everything in the broader town or city, given that it is too hard to service; you will never create a dominant market share that way.  Top agents dominate, that’s the rule!
  • Inside the defined sales territory, circle the pockets of properties that produce more interest from the market, action, and attention.  You will know where most of the buyers and tenants congregate when it comes to business location and property investment location.  The pockets of properties should be segmented into A grade, B grade, and C grade opportunity.
  • Within the A grade property zone you will need to know the owners of all the quality properties.  This will require considerable research and effort over time.  You should also take the time to identify the tenants within each of the high quality properties.  The owners of the properties and the tenants within those properties should be contacted for potential new business.  Develop your prospecting model around this group.
  • The B grade property zone is that which has some reasonable activity although it may be in some transition or pressure when it comes to property occupation.  The property zonings or development plans may be changing, the tenants may be leaving or relocating, or the roads and highways may be difficult for access to the area.  Within the zone, you can identify the key property owners and businesses of some substance or relevance.  That means you should understand the ideal customer type that is attractive for your business model.  Select the right people to contact and remain active with from and networking point of view.
  • The C grade property zone will produce some new listing business but you recognise that it is not the desirable area for a number of local reasons and pressures.  It is likely that this precinct will have pressures on occupancy, high vacancy factors, and smaller businesses or property owners.  If any listing opportunity comes to you from this area, you should selectively decide whether the opportunity is realistic and achievable.  When in doubt, don’t take the listing.

When you split your territory into the three zones, you can understand where to focus your prospecting efforts and where your progress is being made.  Ideally you will be seeking to dominate your property type and property location over the next two or three years.  Top agents can do this when they dedicate real focus to the personal marketing plan they require.

Get signboards into your territory on all the quality properties that you list.  Prioritise your listings and prefer to take exclusive listings in most situations.  You want to be known as the agent that does the deals, not the agent that takes experiments in property marketing.

Need some help with prospecting in Commercial Real Estate?  Get our Newsletter right here.

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Marketing Campaigns and Tips in Commercial Real Estate Agency Today

Office reception area
Marketing Campaigns should be focused on the specific commercial property

When it comes to selling or leasing commercial real estate today, the marketing plan process is fundamental to getting the message out to the market.  Property investors and business owners have to be attracted to the property given its attributes, improvements, design, and functionality.  A good marketing plan will do this even when the property market is tough or slow.   Here are some tips from our Newsletter for Commercial Property Agents.

There are fewer buyers and tenants around for the average commercial property that is taken to market, so enquiry is limited and clients should be made aware of that restriction from the start of the campaign.

The property market is today more restricted than previously with the sustained pressures on finance availability, so each marketing campaign has to be correctly structured and implemented.  Some agents fail to adjust to this fact and do little that is different between property types.  Generic property campaigns are not successful today, and in many cases the generically marketed properties stay on the market for a very long time.

Today’s promotional campaigns on commercial property are or should be specifically constructed and implemented.  The agent really does need to know the target audience that they are seeking to attract from their marketing, and they should also understand how to tap into that audience.

The best marketing campaigns for commercial property today are a mixture of the following:

  1. Defining the target market before the campaign commences, and helping the client see what you are to do with that
  2. Identifying the right media and advertising that will reach the target market will be a central component of your strategy.  Stagger the media in an appropriate promotional way.
  3. Branding the property with a theme that can be consistent across the marketing campaign and feature in all the marketing.
  4. Defining a core period of promotion at the start of the campaign will help drive results.  A full 75% of the marketing costs and efforts should go into this ‘core period’.
  5. The process of ‘test and measure’ is more important today than ever before.  As the campaign proceeds, keep a close check on where the enquiry is coming from.  When enquiry is lacking, adjust the campaign quickly.
  6. If the property fails to attract enquiry and results in 3 months, it is better to stop the public advertising process and promote the property verbally off market.  This allows the property to freshen up and wait for a new selling and promotional period.

Today there is a lot more personal involvement and promotion in property marketing.  Every property campaign has to be driven by the personal involvement of the commercial property sales person.  That is why an ‘exclusive agency’ is more important than ever before.  Any property that is ‘openly listed’ should not attract any special marketing effort of the salesperson.  Open listed properties are an exercise in hope and luck; if that is what the client wants to do, then so be it, they will see what generic marketing will do in slowing things down.

Why not join our community of Commercial Agents and get our free Newsletter here.

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Commercial Real Estate Agency Online Marketing and Social Media Strategies

woman working on computer
You can build a very professional internet and social media platform as a Commercial or Retail Real Estate Agent today

When it comes to commercial real estate sales and leasing today, you will find that there is a growing gap between members of the sales force, and it centres on the internet.  Some salespeople embrace the internet well, some do so generically, and some do not do it at all. Make no mistake here, the internet is with us when it comes to marketing commercial property, but it is now evolving to a level of salesperson personal marketing.  This is where you can get left behind if you do not adjust and learn some new processes.   Here are some tips from our Newsletter for Commercial Real Estate Agents

So to differentiate between the types of commercial property salespeople and their marketing efforts today, here are some findings:

1. Those salespeople that do not use the internet at all are a fast dying breed of ‘old school’ salesperson.  Listings can be marketed personally, and that used to be a standard practice, however today it is necessary to get the property message to the buyers and tenants and that is through the internet.  Most property investors and business owners will use the Internet as a technology tool of property enquiry.

2. At the very basic end of the marketing and promotional scale, property listings should be advertised on the Internet and that requires some knowledge regards drafting advertisements with due regard for search engine keywords.  If you can create advertisements that are Internet friendly, you tend to get more enquiries coming from the search engines.  Investigate the search engines and the keywords that are ranking the highest in your local area.  If you do this on a monthly basis, you can keep your list of key words regularly updated.  Good advertisements generate more enquiries, and in a tough market like this, that’s exactly what you need.

3. To use the Internet more effectively as a personal marketing tool, the salesperson can utilise various levels of social media.  So that would typically be Twitter, Linked in, Facebook, and e-mail marketing processes surrounding each listing.  Every person that you meet should be captured into your database and potentially fed into the social media platforms that you use.  Their consent to this process is highly important.

4. This last category of Online Marketing is overlooked by many salespeople given that they do not understand the process or are not willing to devote the time to implementing it.  In one word it is blogging.  It is perhaps one of the most powerful tools on the Internet, and when used correctly, can give you a massive personal profile across all the search engines and in your local area as a commercial property specialist.  In simple terms, you create an Internet blog structured around your local area and property speciality.  If you continually write interesting articles and pieces of information regards the property market, the Internet will recognise you as being a source of information.  That is how you achieve a better Internet profile.  One essential part of the process is to write your blogs regularly and that means a few times a week or more.  When you do this the search engines will see you as a source of specialist property information and that helps your personal name escalate in the search engine rankings.  When it comes to commercial real estate that is a great idea.  You need to be known as the industry specialist and expert.  This process will help you.

So if you have just started your career in commercial real estate, it is wise to take on the necessary profiling process on the Internet that reflects and promotes your skill and expertise as a commercial property expert.  Providing you regularly update the information, the Internet will be a massive source of personal marketing and branding.

You can get some more tips for Commercial Real Estate Agents in our Newsletter

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Commercial Real Estate Agents – Networking and Prospecting Tips

Business man walking
Be prepared to market yourself as the expert Commercial Real Estate Agent in your local area.

When you work in commercial real estate agency for a number of years, you know that the property market fluctuates and changes frequently.  The only way to work efficiently in the property market as an agent or salesperson is to build your prospecting model and to implement it every day.  Here are some tips from our Newsletter for Commercial Real Estate Agents today.

If you do this you will earn more commissions and listings.  That’s the formula for success in the industry.

Whilst this may sound fundamental, the reality is that many salespeople really struggle with the prosecting process.  If you can be one of the minorities that creates a clear and efficient prospecting system, and that you implement it every day, then the local property market awaits your activities and ideas.  You can win a lot more business. We tend to forget that clients and prospects that need to sell and lease their property really do want an active agent that is not afraid to get out and about to attract new business and contact.

The best agents are not afraid to talk to new people and to source out tenants, property owners, investors, and business leaders. All of this takes system and consistency.  It is a very personal issue that cannot be delegated to a PA in your office.  If you live and drive your database, you can create the contacts and the churn that you need. So who should you contact?

Here are some of the high value contacts in commercial real estate agency prospecting today:

  • Local property owners
  • Property investors locally
  • Tenants in commercial, industrial, and retail buildings
  • Business owners in the local area
  • Property developers
  • Planning officers at the local council offices
  • Solicitors
  • Accountants
  • Engineers
  • Architects

This list of people will have the network and the ideas that you need to tap into as an agent.  They know what is going on in the market place and may want to do something themselves at any time in the future. When you get in touch with these people, the ongoing contact process is really important.  It takes about 3 or 4 telephone calls over an extended time to open the door with these people.  This is where your database becomes really important.

Find some database software that supports your contact and call process and implement its use every day.  In about 3 or 4 months the benefits will become apparent.  All it takes is a consistent call contact process that you do every day to try and get meetings with the right people. When you make lots of calls, you will find that some people to not want to talk to you, or may not have a need.  That is just fine and you should proceed as quickly as possible on to the next call.  Keep up your calling process for 2 or 3 hours every day.  Consistency and persistence will pay off when you take ownership of the process and to the hard work yourself.

You can get more tips for commercial real estate agents at our website http://www.commercial-realestate-training.com/  or you can join our Newsletter here.

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Tips for Lead Generation in Commercial Real Estate Agency

Office buildings in city
Prospecting for leads in commercial real estate requires a systemised approach.

When it comes to commercial real estate sales and leasing, you as the local property agent really do need a lot of leads and opportunities flowing to you on an ongoing basis.  You need to know the tenants, investors, the property owners, and the buyers that are seeking to acquire, change, or relocate to and from quality commercial property.  Here are some prospecting ideas from our Newsletter articles for Commercial Real Estate Agents.

We all know that the commercial property market is highly competitive and forever changing.  Seeing the opportunities as they arise will always give you the edge above and beyond the other local property agents. So the commercial salesperson with the systemized approach to lead generation will always produce more personal opportunity.  This will mean better commissions and listings.  Here are some ideas that you can systemize into your business diary each and every day.

  1. Given that the local property market revolves around the business community, you should be connecting regularly with a lot of business owners and proprietors.  These people are easy to find given that the local telephone book will have a business segment relative to your local area.  With the right questions these people will tell you if they own their property or rent the property from an investor.  Either way the information is invaluable to understand the opportunities you can explore.  They are also likely to tell you who the property owner may be and how to contact them.
  2. Tenants in the local area will from time to time seek to relocate premises as part of a business adjustment plan.  This is where the local real estate agent can provide real service.  The tenant will want to understand the available levels of property supply and demand.  They will also need to know the going rentals in comparable properties and the cost of relocation.  Some agents will choose to act as a tenant advocates in this process and that in itself is a good source of commission opportunity.
  3. Given that the lease occupancy and documentation involved in a property lease is typically for a duration of a number of years, it is fairly easy to determine lease expiry dates and network the relative tenants in the 18 months leading up to lease expiry and potential relocation.   In this time frame they will make choices regards premises and business operations.  Market knowledge will be of great interest to them as they ponder their next business change.
  4. Given the points mentioned above in item three, a similar contact process can occur with landlords of commercial, industrial, and retail real estate.  Invariably these landlords may need assistance in finding tenants to fill the pending or upcoming vacancy.
  5. Commercial property ownership for investors is usually undertaken for reasons of investment performance and gain.  Typically the investor will be suitably placed for further property activity at around about year four and beyond.  They may choose to purchase another property, refinance, or sell and change their property investment.

All of these factors are leverage points for the real estate agent to take action.  Network the property owners and investors in your local area to ensure that you are suitably placed for this cyclical activity. The best real estate agents keep closely aligned to the local business community.  It is this knowledge that is of value to the property owners as they seek to sell, buy, and rent their commercial property.

Need to know more?  Join our Newsletter here, or check out our main website for Commercial Real Estate Agents here.

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Commercial Real Estate Agency Results Leader

Commercial Office Skyscrapers
Look at sales person performance differently in Commercial Real Estate Agency

In this commercial real estate market place, it pays to be a results leader when it comes to the agency performance.  Results leadership should be from a base of both agency outcome and salesperson performance.

The traditional commercial agency performance is usually ranked on the basis of one or more of the following:

  • Numbers of listings in the marketplace
  • Market share for the agency ranked on current listings and assessed by Internet and advertising counts
  • The time on market for the average listing to be sold or leased
  • The conversion rate of listings to successful transactions against those that are not sold or leased
  • The numbers of property managements held by the business and the fees generated per month
  • The numbers of quality properties on the books currently and compared sales person to sales person.
  • The conversion of listings to completed transactions
  • The average commission per sales transaction and per person
  • The mean average of the achieved sale prices by property

So all of these factors should be tracked and assessed.  This should be done on a monthly basis so you can see exactly how the business is performing (weekly assessments do not show you the shifts quite as easily).

You can take many of these numbers and drill down to the level of individual salesperson performance.  From that process you can compare and rank salespeople into one of the three categories being top performers, improving performance, and new recruits.

So how should you rank each member of the sales team to help them understand how they are improving and show them how they can improve?  One of the biggest mistakes a lot of real estate agencies make is to only compare salesperson to salesperson.

The reality of the situation is that every member of the sales team is different and on that basis should be assessed and compared to their previous personal best performance.  It is a bit like being a member of the swimming team.  You know what the fastest swimmer is achieving, and certainly that can be a goal, but the way to reach that high point is through improving your own personal best performance to date.  Small incremental steps personally get the process of improvement underway.

When each salesperson is compared to their own personal best performance to date, they can accept the fact of improvement and will do something about lifting personal outcomes and personal performance for the business.  The secret to the process is that each salesperson respects and understands their personal skills and opportunities.  They then take and more readily accept ownership of the self-improvement and performance process.  They know that they can improve and are more willing to do so.