5 Essential Sales Closing Skills in Commercial Real Estate Brokerage

In commercial real estate brokerage, some brokers and agents are too eager to push a transaction forward to completeness or agreement. Their eagerness can ‘kill’ the deal.  Closing skills are required.

Most commercial real estate investors and business owners are both savvy and experienced when it comes to business negotiations, property transactions and the alternatives; patience is required on our part when it comes to encouraging negotiations and agreements. Logic wins the deal in every situation. (NB – you can get plenty of commercial real estate brokerage tips in Snapshot right here)

It is a fact that many property clients and prospects avoid making decisions under pressure and do not appreciate being placed in that situation. They like to absorb the facts, understand the opportunities, and make their decisions on their terms (not someone else’s).

Clients want to feel comfortable with the real estate transaction and the elements of the property as it is presented to them. On that basis, a process of pressure relief can be quite productive in getting a real estate transaction to finality. Use that process as you work with your negotiations.

Negotiation Strategies that Work

So how can you work with this idea and the negotiation strategy? Consider the following facts and alternatives:

  1. Pressure relief: There will always be pressure in a property transaction, so work with the client or the prospect to understand the pressure from their perspective; that will help you with positioning when it comes to the final negotiation. When you have that pressure related information, you can do more with the negotiation alternatives provided to the parties, and the ultimate negotiation targets. You will also know when to push back, slow down, compromise, and provide pressure relief. As part of this process, remember just to your client is within the transaction, and set your focus on their desired targets or outcomes.
  2. Stories to tell: Understand recent and upcoming property activities so that you have a few stories to tell as part of a property transaction. Those stories will help the client or the customer feel more comfortable when it comes to moving through the transaction and placing an offer at the right time. As your market share grows over time, you will have plenty of stories to tell then share as part of both sales and leasing activity.  You can also share your stories in the social media channels that you are using.
  3. Alternatives to the decision: A few alternatives offered within a negotiation will make things a lot easier for the client or the prospect in getting to a decision. You can work with alternatives relating to decisions factors such as price or rents, timing, settlement dates, due diligence, improvements offered, and documentation. Know all the variables from your clients perspective, and understand the desired outcomes of the tenant or the buyer as the case may be. There are always alternatives to help you in achieving a positive result as part of a sale or lease transaction.
  4. All the property facts: Make sure you have all the facts available or required of the property location, the asset, the transaction, and the known challenges. Make plenty of enquiries before you get to the final negotiation; documented all the facts that relate to the asset as part of the listing process. There will always be strengths and weaknesses relating to any property asset as part of the required sale or lease negotiation. You will have to work with those strengths and of those weaknesses to move the transaction forward in a timely way.
  5. Professional and accurate communications: Some properties are highly complex when you consider the building improvements, title details, tenancy mix, and cash flows. Review all your information through some different channels and people; ask plenty of questions. The facts provided by the client should be checked to avoid any inaccuracy or destruction to a negotiation later.

These elements can become strategically useful when negotiating a commercial real estate sale or lease transaction. You can refine your negotiation skills using these elements and opportunities.

It should be said that the longer you are in the industry as a specialist broker or agent, the more refined and developed your negotiation skills will become; use that to your advantage. You can certainly fast track the process through practice and role playing as part of your regular sales team meeting.

It should be said that the longer you are in the industry as a specialist broker or agent, the more refined and developed your negotiation skills will become; use that to your advantage. You can certainly fast track the process through practice and role playing as part of your regular sales team meeting.

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.

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.