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.