In commercial real estate today and in your agency, it is necessary to have a good selection of quality listings. Quality listings will always create solid enquiry in any market. It is those quality listings that will help you with dominating your territory and converting more commissions.
It is an observed fact that low quality listings produce poor enquiry. It is much harder to build your market share and listing opportunity as a commercial real estate agent from poor quality listings. That being said, it is also the case that open listings produce poor quality commercial real estate activity. As a priority, pursue exclusive listings for a lengthy period of time with all of your clients. In this way, you will control market enquiry and convert more transactions personally.
So here are some rules that should apply to the prospecting process in helping you with your market share and future commercial real estate business opportunities.
- Get to know your territory intimately. That will mean on a street by street basis and or property by property basis. Your territory should not be too large or too complex. You cannot be a commercial real estate specialist to everybody and every property type.
- Identify the existing properties on the market today and their time on market. There will be reasons for properties not selling or not renting. In each case you should review the competing properties and competing agencies to understand the errors in marketing and the poor performance of some of the salespeople involved. Over time you can market yourself around weaker agencies and properties that have not been correctly promoted.
- Prospecting should be undertaken on a daily basis for at least 2 or 3 hours. That should be the number one activity in your diary regardless of anything else. When you set this rule and stick to it, you will achieve more market share and market intelligence. Over time this will have a major impact on your commissions. Cold calling should feature as a main component of your prospecting efforts. This requires special diligence and commitment, but the rewards are many.
- Get to know the businesses throughout your local territory. Those local business proprietors will understand and potentially help identify for you the changes to property in the local area. Over time those businesses will also be looking for alternative premises to lease and or rent. Those businesses can also be a great source of sale and leaseback activity.
- It is very easy to approach businesses as part of your prospecting model. On that basis it should occur every day. You will gain valuable market intelligence from the process. It is somewhat harder to identify property owners and approach them. That is mainly because they hide behind company structures and property trusts. Create a list of prime properties in your region so that you can gradually work through the potential property ownership structures and identify the right people to talk to. It will take time, however the results are significant.
While this list is not finite or complete, it will give you the foundation for the prospecting process to commence. The commercial real estate industry is very much personally orientated and built on relationships. Over time you must build relationships with key people, business proprietors, and property investors.