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.
In commercial real estate brokerage today develop a personal focus on performance relative to your location and property specialities. When you focus in this way, you can develop some real momentum and levels of outcome in both listings and commissions.
The agents the struggle in the industry are those that generally do not know where they are currently when it comes to industry based performance. That is a problem but it can be easily fixed.
Top Agent Focus
The top agents of the market understand exactly how they have performed over recent time when it comes to:
Listing Activities within their specialized property type – you cannot be a specialist across every property type and location so determine the things that you can get some results and listings from in the local area.
Commissions per listing – when you drill down into the commissions per listing you will soon see levels of quality that can be improved on a listing by listing basis. Good quality listings will always move faster and the time on market will be shorter.
Commissions per transaction – you can split your transactions into sales and leasing activity. You will then see the levels of activity created from each transaction and then you can assess the size of the transaction taking into account the amount of effort required in the marketing and the negotiating. Selective listing activities will help you improve commissions per transaction.
Listings per location – assess your current listings on a precinct and locational basis. Do you have a good sure of listings in the prime precincts and areas where people are making most of the property enquiry? You may need to adjust your property prospecting activities to convert more listings per location. The best locations will always create better levels of enquiry and that has a direct flow through into levels of inspection, frequency of negotiation, and database size.
Commissions relative to database size and activity – review your current database for both size and relevance. Also consider the accuracy of the information contained within the database. If you are struggling in the market today when it comes to new business opportunities, then it is time to look at your client list and your prospecting activities. The database will be at the centre of that assessment and review process.
Referral business opportunity – from your recent successful transactions the referral question should have been asked and encouraged. It is reasonably easy to reach out into new market segments and property opportunity through a deliberate and direct referral strategy. Your VIP clients should be at the centre of your referral business and referral questions.
VIP clients – understand exactly who your VIP clients are today and why you should consider them for future business opportunity. Segment those VIP clients into levels of activity, location, financial capability, and timing. You should be connecting with the VIP clients more frequently and directly as part of your prospecting model.
Competing agents and brokers locally – an assessment of competing agents locally will help you re-position yourself into the market segments that are underserviced or offer the best opportunity. As part of your professional business plan is a commercial real estate agent or broker, make some deliberate choices when it comes to personal marketing processes and strategies in and around your competing agents.
Be a Problem Solver – make it easy to your clients and prospects to see that you are the agent of choice when it comes to solving a property problem in a timely and direct way. When you have a successful transaction, be that in sales or leasing, spread the word about your success and the results achieved for your clients. Get some success letters into the location with a particular focus on property investors and local business owners.
From the list mentioned, it is easy to see that commercial real estate brokerage business is all about assessing the numbers and developing appropriate levels of personal improvement.
In commercial real estate agency, you will need to interact with many different people in differing circumstances. To improve your chances of success, it pays to refine and practice your dialogue for the demands of our industry. Practice like this will help you in so many ways including market share, listing conversions, marketing adjustments, and deal conversions.
Our industry is competitive in many different ways, and on that basis personal dialogue improvement should be part of your skills upgrade.
The following situations are highly competitive and arise frequently each day:
Prospecting for new listings and prospects to serve
Talking to property investors and business proprietors in the local area
Identifying property changes and opportunities
Inspecting properties with buyers and tenants
Inspecting properties with property investors
Presenting and pitching your professional real estate services with property owners
Negotiating a sale or a lease transaction
Qualifying prospects and clients
Closing on the necessary documentation as part of a sale or a lease
Moving a transaction forward through the terms and conditions of the deal
Keeping the clients, tenants, and buyers motivated as part of the transaction
Working with solicitors, accountants, and other professional people
Referral business with current clients and contacts
Lead generation through people that you know or want to reach
This list can be quite daunting considering that many variables exist in each situation. If you cannot communicate well and show that you are a true commercial real estate professional the market will soon avoid you.
The longer you stay in the industry, the more experience you will have in each of the above matters. You can however fast track the process through some deliberate dialogue improvement and role playing.
The ways to improve your dialogue will involve a strategy and process. Here are some ideas to help you get started.
Share the challenges of the market and your clients with the sales team. You can then discuss how you would respond to issues and challenges.
Watch what other agents are listing today. Create some alternative marketing packages that you can use as examples in role playing.
Once a week take the sales team to your listings and talk them through the properties as you see them. Sometimes an extra set of ‘eyes’ will help you see alternatives in inspections, marketing and promotion.
Self-improvement is an essential part of our industry. When you take on the challenge of improving yourself, the industry takes on a new momentum. Practice and improve what you do and say.