Any opportunity in commercial real estate today should be acted on quickly and effectively. If you ‘sleep overnight’ on the issue you will likely find that is not going to be there in the morning. There are many competing agents and brokers waiting to jump on the listing opportunities around you.
Here are some important rules to understand:
Real estate today is becoming a global business that is traded on any day of the week at any time. You must be prepared to talk to a client or prospect on the telephone when he rings.
The marketing process for commercial property has become timeless. Internet listings promote properties globally and across the country. Be prepared to take the enquiry when it occurs. Carry some standard forms as part of capturing inbound enquiry. Also carry a full set of current property listings ready to take the questions and inspections at short notice.
Quality listings and good properties will create significant enquiry in any market. When you take a quality listing to the market today, be prepared to respond to the enquiries as they occur. A quality listing will create a significant amount of calls, and as a consequence, a good number of inspections. Time can be a precious commodity when you have a few high quality listings on the market are the same time. That being said, you still need to take the required actions and capture the enquiries effectively and efficiently.
If the person wants to see you later in the evening or over the weekend as part of progressing to the next stage of a property enquiry, then create the meeting and let it occur. Far too many brokers are selective when it comes to critical meetings and property inspections. Certainly you should qualify the prospect before you arrange a time to meet, but be prepared to work the longer hours and over the weekend. A career in commercial sales is totally different to a standard 9 to 5 job. The rewards are many; however you do need to work hard.
Every property inspection is an opportunity to get information. The person you are showing the property to may not necessarily move to the next stage of offer; however you will get valuable market intelligence from the connection. Ask the questions, and put that information into your database.
In every property inspection, build a degree of urgency to encourage the buyer to move to the next stage. Local property knowledge about competing listings, prices, and time on market will help you with the urgency factor. Understand the other listings that are available and the differences that exist between those listings and your property. I go back to the point that a quality listing will always encourage and create a good number of inbound enquiries. Be prepared to work on those leads and opportunities as they occur.
From these points, it is easy to see that a commercial real estate agent or broker should be focused and diligent. A lead or an opportunity today needs to be actioned as soon as possible. In that way you will grow your market share quickly and beat the competition.
In commercial real estate brokerage, your reputation will make or break your career. That is because the cycle of property activity is so long and listing success will be largely formed on the back of ‘trust’.
It doesn’t take long for a poor reputation to spread in the industry. Some agents and brokers that under-perform with their client’s property requirements are soon to suffer the implications of those actions.
So it is a fact that the clients that we serve like to know that they are working with an agent or broker of integrity and skill; someone that has the right knowledge to make the property pain for the client disappear as quickly as possible at the best level of outcome. So what would that be? Try some of these:
Quick sale or lease
Nil incentives in leasing
Best buyer profile
For this reason, every exclusive property listing should be worked to a plan and a process that gets the message to the right target segment of buyers or tenants as the case may be.
Notice that I did say ‘exclusive listing’? Any open listings are a process of luck and should only be serviced when you see opportunity. It is the controlled stock in this market that really matters and ‘exclusive listings’ will give you that.
So let’s go back to the point that ‘reputations matter’. What can you do to strengthen your reputation? Try these:
Write a blog about property activity locally on a regular basis. Talk about your property speciality in many different ways and make that blog of interest and of use to the readers on-line. It is remarkable how often useful information is seen online by property investors and sellers or tenants as the case may be.
From your blog you can link the posts into your social media platforms such as Facebook, LinkedIn, and Twitter. Don’t spread yourself too thin on the ground by using too many platforms. You only need 2 or 3 to make the process work.
Write articles for your on-line newsletter and add those articles to the listing detail that you send out. The articles will help show the market that you are skilled and knowledgeable in many different ways.
Make these things a regular process that you can stick to. Over time your relevance and reputation as a good agent or broker will build.
In commercial real estate agency today, you need to be an entrepreneur in your business practices and your focus. Your successes in the industry as an agent will come from your personal endeavors.
The agency that you work for will have little to do with the process of building greater personal commissions and generating listings. Successful agents are individually driven and have a comprehensive marketing plan to promote themselves comprehensively through the region that they work in.
There are some very simple strategies to apply here if you wish to rise to the top of the market. That being said, all of those strategies require personal effort and deliberate focus. They take time and effort each and every working day to implement effectively.
Here are some of those strategies to help you develop the entrepreneurial mindset of a top commercial real estate agent:
They say that you can learn a lot from experience. You can also learn a lot from the other top agents in the area. Whilst some of those top agents may work with competing agencies, you can observe what they are doing and how they do it. You can replicate their successful processes when it comes to knowledge, skill, and marketing.
Every client that you serve today will be an opportunity for repeat business in the future. The cycle of commercial real estate is quite long and on that basis your relationships will need to be built and nurtured. Focus on quality clients and quality properties. It is the quality properties that will bring you more enquiries from any marketing campaign. Poor quality properties bring poor results.
Referral opportunities can be generated from successful transactions. Stay close to your clients, customers, buyers, and tenants as part of closing a transaction and moving on. Ask for the referral at the right time.
There are certain skills which are absolutely critical to the services that you provide as an agent. You should have significant skills in prospecting, presenting, marketing, inspections, negotiations, and documentation. These six aspects of your career require constant upgrade and practice. When you do this, it makes it a lot easier for you to rise up in the ranks of the commercial property industry.
Every listing, sale, or lease is an opportunity to talk to other people in the local area. Send a direct letters to the local property owners and the property investors as part of your marketing efforts. In many respects, one single listing can allow you to talk to several hundred people. It is simply a matter of developing a mindset to do it and commencing the process.
If you choose to be an entrepreneur in commercial real estate agency today, you do need to take a serious look at your business activities and systems. They will help you take advantage of the local property market providing you implement the appropriate action on a daily basis. Success in this industry is driven from personal activity and nothing else.
In commercial real estate agency it is essential that you sustain peak performance when it comes to undertaking the daily business of an agent. Peak performance can be many different things for each of us, however in our property industry it usually relates to client contact, prospecting, marketing, and negotiations. It is a very personal process.
The agents that are struggling are usually the ones that have little focus on the key issues that really matter. It is very easy to get tied up in mundane and ordinary issues. You can be ‘busy’ doing all the wrong things; you can also be ‘busy’ chasing hope in a sale or lease, and distant deals that you have been working on for months if not years. A good degree of selective work is required to build and maintain your income. Understand the difference between a good deal that has a reasonable chance of success and one that is really a great waste of time.
The key issues in our industry relate to building the business, converting the business, and establishing a strong market share. Peak performance has something to do with that. Here are some tips to help you:
Segment or split your day into the things that really matter. They are the things that will help you build your business, listings and commissions. If you put a title to the tasks they will be prospecting, client contact, and marketing. Those three things will allow you to inspect properties with the right people and negotiate on more deals.
Identify the key issues, clients, actions, and tasks that are closest to the money and commissions. Avoid anything that cannot give you a lead or a commission. Your income depends on your focus and actions.
What exactly are you really good at (in commercial real estate business)? Hopefully your skills are in connecting with clients, finding listings, and marketing. When you understand what you are good at you can do more of it. If you are not a top performer in some critical things then you will need to improve. Practice will be required.
Enjoy what you do. Passion and attitude has a lot to do with moving your market share forward.
Look for the top agents in the local area. See what they do and how it works for them. You can replicate their skills and actions. Watch and learn.
Simple things like these five will help you move ahead as an agent in commercial real estate. Control your time and your focus.
In commercial real estate agency today you really do need to set come clear goals and plans to keep you on track with the things that you want in listings, market share, and commissions. An agent without this focus will struggle with momentum.
So you need a ‘success plan’ to take you forward. What does a plan of this type look like and when do you create one? It is created once a year and it is monitored monthly.
As part of this process you can then see what is working, changing, and lacking. Adjusting your plan is important to keep you heading to the targets that you need.
Key Performance Indicators
Commercial real estate agency is a personal thing. It is something that is driven from the actions and skills of a salesperson. It doesn’t really matter who you work for, but it does matter what you do as an individual in your job. Every day the key and important things should be done.
Now I know that many agencies will impose on the salesperson a series of key performance indicators for the year. Each week and each month those KPI’s will be tracked by the agency leader or principal. Unfortunately the KPI’s set by the agency are for the convenience of the agency only, and most individual agents will not take ownership or commit to the numbers.
So how do you get around this problem? You work in reverse. You ask the agent or salesperson to set the Key Performance numbers that are real and relevant to where they think that can and should go in performance for the year ahead. I call it ‘Success Planning’.
The individual agent sets the numbers as part of the ‘plan’ and gives them to the team leader. Those numbers can then be merged into the bigger picture. Perhaps they will need shaping, but the numbers are ‘owned’ by the salesperson.
What numbers should you have in one of these plans? Here are some things to help you.
Size of database
Client list growth
Time on market
Sales in $ terms per quarter
Leasing in $ terms per quarter
Property management leads for the quarter
Calls outbound per week
Meetings per week
Presentations per week
When a salesperson commits to a list of key performance indicators like this, they can see what they have to do and how it occurs. The fact of taking action is much easier because the salesperson can see what has to be done. In this commercial real estate market, that is a good thing.