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Tips to Solve a Slump in Commercial Real Estate Sales

Solve your sales downturn by new effort.
Solve your sales downturn by new effort.

In commercial real estate from time to time, you will get a slump in sales.  That will come from a variety of challenges and market changes.  When that occurs, it is important that you adjust your prospecting processes and market focus.

A slump in sales is a reason to shift your personal business practices and market segments.  If the sales activity is genuinely slower for a long time, then you should start to look at the alternatives of helping landlords with leasing activity in the local area.  Invariably you will find that a new commission opportunity still exists, albeit in a different way.

Here are some rules that should apply to the changing market conditions and a personal slump in sales:

  1. A slump will only continue if you fail to adjust your prospecting and business efforts.  In many respects, the downturn may have been created through a lack of personal prospecting and client connection.  It is easy to stop prospecting when you have plenty of business on the go.  That is the most common problem we see when it comes to this type of industry downturn.
  2. Review your activities when it comes to new business generation.  Take a serious look at your database to ascertain that it is up to date and accurate in every respect.  If your database is lacking in any way, it will require immediate attention and that will involve plenty of phone calls talking to those people that you have overlooked or not connected with recently.
  3. Talk to all of the clients that you have serviced over the last five years.  It is a known fact that property owners and investors work to a cycle of ownership and disposal.  Many property owners will act on a property decision or transaction once every 5 to 7 years.  That is why the cycle of contact is so important to the business that we generate.
  4. Ask for referrals from the clients and the prospects that you know.  This is the easiest relationship building process available to us.
  5. Get back into your sales territory and the streets that contain the quality properties.  Door-knock the local businesses to introduce yourself and question them about their current property needs and activities.  Most business owners and proprietors will know a lot more about their immediate local property market than you do.  They are likely to share some of that information that can lead to some good leads and other connections.
  6. Look for any new property developments and any rezoning applications.  You can get this information from the local planning office.  Whilst some of these transactions take months if not years to come to fruition, you can position yourself to help those property owners impacted by the changes.
  7. Lift your presence on the Internet through social media activity and also specific property blogging activity.  Show the online world that you are a real expert when it comes to the property type and the location.

To get over a slump in sales activity, it is simply a matter of changing your focus and your business habits.  Put yourself back into a prospecting mindset and reconnect with the market in every way possible.

You can get more tips like this at our main commercial real estate training website right here.

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Seasons of Selling and Leasing in Commercial Real Estate Agency

time over property image
Commercial real estate agent selling seasons are predictable.

In commercial real estate, there will usually be a pattern to business as it applies to properties in your local area.  There will also be a pattern to business that is separately unique relative to sales vs. leasing.

If you are considering your personal business plan or your agency plan relative to commissions and listings, it pays you to consider the variations between property seasons and selling periods.  In an average year, the first and fourth quarters of the calendar year will usually be slower.  This then says that most of your business will be written between the months of March and October.

The performance benchmarks that you set yourself regards listings and commissions should be adjusted accordingly.  Averaging your listings and commissions across the entire year on a weekly basis really does not work.

Here are some observations regards seasonal business opportunity in commercial, retail, and industrial property.

  1. Many tenants and local businesses start to consider their relocation needs in the last quarter of the calendar year.  They start to plan their property needs for the coming 12 months and will start to look around for new properties as soon as the Christmas holiday break is completed.
  2. Some local businesses will have pressures of occupancy change relating to the upcoming expiry of their lease.  For this reason you need to monitor local leasing activities and lease expiry dates.  On a regular basis, you should be talking to business leaders regards their leasing and property needs.  Any lease expiry inside the next 12 months should be a focus of your prospecting and client contact activity.
  3. Particular businesses will operate under pressure of goods supply to their customer base.  This then says that they will have an intense period of business focus for a certain period of time each year.  It is the downtime or the slow time for the business that you need to identify.  During this downtime they will be considering property changes and or adjustments.
  4. Solicitors and accountants will usually advise their clients on property change and or investment change following the end of the taxation year or a taxation assessment.  Stay close to the solicitors and accountants in your local area in case any of their clients require special assistance when it comes to property changeover or acquisition.

The commercial real estate business is relatively seasonal.  Commercial, retail, and industrial property are similarly seasonal.  If your local area is also impacted by population or tourism demographics, you will also need to look at how those seasons’ impact property decisions.  Opportunities are always available when you understand the ‘seasons’ of property change.

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