Commercial Real Estate Brokers – The Right Things to do in Creating Real Investment Strategies

When you take on an investment client in commercial real estate brokerage it is likely that they will have problems and issues to address in their property portfolio.  You can help them with an array of strategies to lift property performance.  Ultimately that means fee and commission potential for you.

Don’t just focus on being the sales or leasing specialist in commercial real estate for your location; you can go a lot further into offering specific services and factors of property improvement.  Look at the challenges that some clients have with their properties.  Understand how you can be the best person to resolve those things.  Design your services accordingly.

Here are some ideas to help you with this:

  1. Property precinct studies – Track all the activity and property availability in your territory or location. Watch what is happening and how things are changing with supply and demand.  The changes in the precinct will give valuable indications of what could occur with prices, rents, and occupancy.  Ultimately commercial properties are in the main occupied by business tenants so also watch the levels of local business activity and where those businesses like to locate themselves.
  2. Searching for good quality tenants – The challenges with vacancies will always frustrate local landlords. If you keep in close contact with regional tenants, and particularly the high profile tenants, you will soon understand what their occupancy needs may be with location based business be it expansion or contraction.  Within your database ensure that you have all your tenants segmented so that you can look for those special businesses to locate into upcoming vacancies.  If you have a comprehensive tenant database for the location, it will be hard for landlords to ignore your professional services and offerings.
  3. Rental growth numbers – Within your zone and location, there will be shifts in lease rental by both type and amount. Certain areas will be more attractive from a leasing and tenant perspective, and you can identify the trends and the opportunities.  Chart the rental trends so you can show your landlord clients exactly how they can be part of the income growth patterns for the area.

When you work with landlords as investors you should be able to help them through key questions like:

  • Who are the best tenants for the location?
  • How can the net rental for the property be improved?
  • What are tenants looking for and how can those factors feed into the future of the property?

There are many things that you can do here to help property investors improve their property performance with both rental returns and capital value.

You can get our free eCourse on Commercial Real Estate Brokerage right here.

Commercial Real Estate Brokerage – Seller Paid Advertising Rules for Marketing Campaigns

In commercial real estate brokerage, the advertising and marketing process is a big part of enquiry generation.  The advertising process can be running at the same time that an agent is directly promoting a listing to the businesses and investors in the local area.

A good listing and particularly an exclusive listing should be directly marketed; since you control the listing, there is no other better way to create enquiry.  Things get a little bit ‘skewed’ however when an agent doesn’t have many people in their database to talk to about property listings as they come in.  Your database, its size and segmentation, and its growth are critical parts of commercial real estate enquiry generation and listing conversion.

Understand the relationships and important issues at play here.  Direct marketing and general advertising are both very important tools to be used with any good quality listing.  When you connect with local people about your listings you will find other local information and leads that you can work with into the future.

Exclusivity Really Matters

Take every exclusive listing and promote it directly and locally.  Then take the same listing and use seller paid marketing funds to comprehensively promote the property through advertising both online and offline.  Good agents convert advertising money from the clients that they service.  That is how they create more enquiry at a higher level than those agents that just list properties online and hope that something will come from the property listing.  The ‘list and hope’ method of marketing has no place in commercial real estate brokerage.

Exclusivity sits at the center of all of these things.  There is huge value in the exclusive listing process.  Are you up to the challenge of converting seller paid marketing monies?  Top agents convert marketing money.  That’s a fact not to be overlooked.

A Story of the Property Market

A young and perhaps relatively ‘new’ agent recently raised a point with me recently that exclusive listings are just not done in his city; he claimed that fact based on his experience and because ‘that’s the way things are’.  I then had to correct him and say that ‘he was very wrong’ and was quite likely not rotating and working in the best levels of the market with good listings and clients.

High quality listings are never marketed ‘openly’.  Any quality property is given exclusively to the best agent that can pull in the property enquiry.  An ‘ordinary agent’ listing average properties is never likely to know that or change their listing results.

If any agent is not converting ‘exclusively’, then it is not the market that is at fault, it is the agent.  Agents in that situation should look at their value and business strategy.  It is likely that they are not regarded as the best agents locally for the market segment and property type.

Seller Marketing Funds

So let’s say that you have converted seller marketing money.  Here are some specific rules to the process of directing such a campaign to convert better outcomes:

  1. Full Marketing Campaign – Spread your advertising spend across a period of time where you can focus your promotional momentum. Typically a marketing campaign should be over an 8 week period.
  2. Client approval – Have your client sign off and approve of the campaign and the advertising formats before you do anything. In that way any debate and disagreements about the core marketing message can be removed from the promotional efforts.
  3. Primary targets and Secondary targets – From local investigations you should have a very good idea of who your targets are for the property and where they are located. Split those targeted property segments into primary and secondary.  Spend most of your money in the primary segment of prospects.
  4. Get your money up front – If your seller has promised and committed marketing dollars to your advertising campaign, get that money upfront before you spend any time and effort in the campaign.
  5. Online and Offline balance – Understand just where your buyers for the property are located. From that information, drill down on a balance of promotional spending that attracts the people looking to purchase currently and into the future.  Understand and choose the right media channels that will help you get the message out there locally.
  6. Feedback from enquiries and inspections – Help your client understand just what is happening from the advertising spend. Tell them about the number of enquiries coming in and what the comments are from the inspections undertaken.  If anything you should be able to condition your client from the comments received from your inspections.
  7. Track enquiries on all similar properties – Sometimes one property will attract more or less enquiries than others by type and location. Look for the variations in property enquiry and shape your marketing campaigns for the best results.  Give the client plenty of reasons to move on your promotional recommendations.

So there are plenty of good things that you can do here with your advertising spend funded by the sellers of your listing (your clients).  Get the clients involved from the very start and keep them fully appraised of just how the promotions and marketing effort is working with their property.  That is what top agents do all the time.

You can get more commercial real estate marketing tips in our eCourse Snapshot right here.

Commercial Real Estate Brokers – Create Market Coverage with Blistering Speed

In commercial real estate brokerage today, there will always be plenty of competition for you to work against.  Many listing presentations and listing opportunities will be competitive involving other agents and brokerage firms; in such situations, you have little control on the listing presentation and the results achieved with the client.

It directly follows that you should focus on the creation of your personal property market and client list.  In that way you can achieve better market momentum without the frustrations of competitive listing situations and the influence of other brokerages.

 

Set the coverage rules

So what you need to do here is establish a comprehensive marketing coverage for yourself within your property specialty and your territory.  There are different ways to do that, however some of the strategies below will help you consolidate market share with blistering speed.  Are you ready for the challenge?  Here are the ideas:

 

  1. Understand your business strategy: Be prepared to work to a personal plan and an action strategy on a daily basis. Every day action needs to occur so that you can speak to more people and grow the pipeline of database activity.  Set some personal and specific targets to talk to at least 20 people per day on a face to face basis.  That will mean you will need to get out into the marketplace and connect with business owners and property owners.
  2. Professionalism is important: Our industry is predominantly revolving around personal trust and personal contact. You will need to know lots of people in a professional and trustworthy way.  They need to remember you at the right time when a property challenge arises.  The only way you can achieve those goals is through a regular and ongoing contact management program.  Use the telephone to generate lots of meetings in an ongoing way.  Understand exactly what people are doing when it comes to property activity now and in the future.  Use the diary process within your database system to maintain regular and ongoing contact.
  3. Marketing and listing standards: When you convert a listing from a presentation or client contact program, it is the start of the marketing process. Hopefully you will have converted the listing exclusively so that you can comprehensively cover the target market in an ongoing and direct way.  Exclusivity is really important when it comes to professional marketing.  To convert listings exclusively you will need to refine your property listing and presentation processes so that you are the best alternative agent or broker for the clients property challenge.
  4. Local area marketing: Create marketing programs that are quite specific and professional for the listing and the location. Given that many other local property owners and business owners will be seeing your listing advertisements, it stands to reason that a quality marketing campaign will create substantially better levels of enquiry and branding for you personally.  One simple fact underpins all of these marketing initiatives; it is vendor paid marketing.
  5. Exclusivity: Every exclusive listing should bring with it a degree of vendor paid marketing funds. It is interesting to note that many agents and brokers struggle with this business requirement and marketing funds conversion; they might win the listing of they fail to bring with it sufficient marketing funds to pull in the enquiry.  This is a common problem when the agent or the broker fails to impress the client relevantly and comprehensively as part of the listing process.  It is easy for a client to say yes to the listing process when they are not spending any money or providing any personal commitment monetarily.  A serious client with a genuine property need will list their property with the best top agent that has a market coverage.  Pitch and present your services accordingly.  Always demand exclusivity and vendor paid marketing as part of any listing conversion.  Be prepared to walk away from any open listings and situations where the client appears to be unrealistic.

 

So there are four specific things that can be done here to drive better personal market share in commercial real estate brokerage.  Understand your efforts in each of the four categories.  Practice and improve your skills accordingly.  There are always opportunities to be identified here and converted across sales, leasing, and property management in any town or city today.

You can get more commercial real estate brokerage tips in our ‘Snapshot’ eCourse right here.

227 Commercial Real Estate Online

Today’s program is largely about personal performance in commercial property sales. The audio topics are 1. How to create your own mastermind group, 2. How you can directly approach Investment Property Sales, 3. Some essential sales skills for brokers today, 4. Setting forecasts and goals, 5. Motivating yourself in property brokerage. These are commercial real estate coaching programs by John Highman.

MP3 File

221 Commercial Real Estate Online

In today’s program we focus on commercial real estate leasing. Most particularly, 1. How to work with franchise tenants, and 2. How to grow lease fee opportunities. These are commercial real estate broker training programs by John Highman.

Action Tips for Busy Business Professionals Today

Today there are many priorities and client issues for a professional salesperson to balance.  There are limits to how much work can be done in one day by one person.  The important issue to understand here is that time waits for no one.  In the selling profession, time use and time management are valuable resources to work with.

Forget about working long hours; focus on working effectively and directly in just 5 hours.  Elevate the quality of business that you create and implement in this time.

If you are struggling with getting results in your market or your industry, it is likely to be the case that you are not using your time very well.  Here are some tips to help with that:

  1. Time is valuable – In any 8 hour working day, only 5 of those hours will be very effective.  That fact is largely due to competing people, clients, personal performance, and issues that arise that cannot be controlled.  Expect to be interrupted but control your response.  Make 5 hours of your day highly effective.  Do the things that really matter in those 5 hours.
  2. Control your diary – Don’t let others book you in for appointments.  If you are a professional salesperson, make your workload decisions and diary entries yourself based on priorities and people.  If the issue or person is not important, then don’t put it in the diary; delegate unnecessary issues.
  3. Take notes – From every meeting and conversation take notes in a suitable book that can be referred to later when time is less intense.  In that way you are not letting immediate things overtake your work priorities.  Carry your notebook with you for this purpose.  Change your notebook at the end of each month so you have a reliable reference system that you can look back on if important issues arise.
  4. Circadian Cycle – It is a known fact that the beginning of the day is far more effective for most people when it comes to getting things done.  The observation is known as the ‘circadian cycle’.  Manage your diary so that the most important things are done in the morning; they should be the things that can bring you the best results.
  5. Pareto Principle – Most people know that this is the 80/20 rule.  It is an observation from the times of Vilfredo Pareto (an Italian Economist from the late 1800’s).  He determined that 20% of actions will bring 80% of results.  This then says that we should all take the time to focus on important issues for at least 20% of the day.  In business and professional selling that is a good rule to have.
  6. Technology – With the advances of technology there are many tools to help us stay organised and communicate with others.  Effectively these technology tools can save us a lot of time.  The tools can also help us to remain in contact whilst out of the office.  There is no real reason for a salesperson to sit in the office waiting for the telephone to ring; professional salespeople should be out of the office and in the market talking to clients and prospects.

Simple rules like these help us stay on track in professional sales today.  Are you up to the challenge?