It is an interesting question to ask in this property market. Exactly why are you a better commercial real estate agent for a client to use than some other agents locally? Why do you stand out as the best choice to take on the listing? The clients and prospects that you serve will be asking themselves those questions and they don’t want to make mistakes in getting to the answer. Here are some tips from our Newsletter.
Here is what most agents say when it comes to providing the answer to their clients:
- We have all the experience with properties of this type
- We are top agents locally by far
- We have the best people on team that will serve you comprehensively
- We are part of a very big network of offices and your listing will be promoted across the network
- We know how to promote this property
- We have the results in the local area
- We know exactly what you want Mr Client
- We can do this your way without marketing funds and at a lower commission
- We are the best at getting results faster
Have you heard some of these before? If you say any of these things to a client you have to prove what you say. It is not sufficient to ‘throw out the line’ without any substance to back it up. The clients that you serve expect you to prove it.
It is no secret that the current commercial and retail property market is under some pressure in prices, rents, time on market, and negotiations. You have to do more with less when it comes to working and marketing a listing.
Do you treat your exclusive listings with the focus they deserve? Can you prove to the client that the exclusive listing process in your agency is quite special and unique to the point that it is exactly what they need to create the property enquiries and the inspections? As you can see from these questions, I am pushing you to think about the sales pitch and presentation that you use today, so you can make it highly relevant to the client and the property. When you do this the listings are far easier to convert.
New agents and salespeople in commercial real estate always find it difficult to attract and convert exclusive listings, and on that basis most of their listing stock initially is ‘open agency’. If this sounds like you, start to focus on improving your relevance and your pitch. Remove the ‘generic comments’ from your sales pitch and become very property specific. Provide marketing, inspection, and negotiation solutions that are matched to the property and the client. In simple terms, be very special.
Leasing commercial real estate is something that can provide a good buffer of commission when sales listings and actual sales have slowed. It is also the case that a successful lease transaction can lead to a future property management or sales opportunity. This then says that all top commercial real estate agents should be prepared to lease ‘quality’ local property.
Notice that I said the word ‘quality’ when it comes to property selection. Determine the property size and type that will give you the appropriate fee for a successful lease transaction. Focus locally on quality, the good landlords, and the quality tenants. A lease transaction can take a reasonable amount of time to initiate and complete. On that basis you should only focus on the good deals and the good opportunities. Let some other agent have the small things to lease that have minimal fee results.
Here are some tips for taking enquiries from tenants today when it comes to leasing new premises or relocating:
- Make sure that you’re talking to the decision maker when it comes to the particular tenant. Get the contact details and the identity of the tenant sorted before you provide too much property information.
- Ask them about the property type that they are looking for when it comes to improvements, services and amenities, location, and permitted use. Also find out about the required lease term, the rental budget, and property usage.
- The tenant’s staff and the customers interacting on the property will create certain challenges when it comes to improvements and location. Car parking is a good example and case in point.
- There are big differences when it comes to leasing office, industrial, and retail property. Create checklists for each so you can ask the relevant questions with potential tenants.
- Is the tenant coming to you today from another property location? Are they new to leasing property locally? If they know nothing about the local area, you will need to fill in the gaps when it comes to business demographics, transport, communication, local area profile, and property usage.
- If they are coming to you from another property location, they may have some timeframe to satisfy or a property disposal requirement. Ask the right questions to get the complete picture. You may even find another listing requirement with the property changeover.
- Has the tenant looked at other listings with other local property agents? It is quite likely that they have seen other listings and may have current negotiations underway through other agents. It is good to know if this is the case so you can adjust your strategy accordingly.
Don’t be too eager to take a tenant to a property. Get all of the facts together prior to the inspection process so that you don’t waste your time with the incorrect strategies or listings. Match the tenant to the property before you leave the office; qualify them. If necessary take them to a number of properties to give them a comparison of current market conditions.
Get more tips like this in our Newsletter.
In commercial real estate agency, the sales team can be a powerful force in the market if the team works together. The disciplines of sales, leasing, and property management all require special people with special skills. As the properties that you work on become more complex, the team involvement process will help all your presentations and sales pitches.
So you can have either of these situations in your real estate agency:
- You can have a group of top salespeople that all do their own thing in marketing, prospecting, and listing.
- You can have a group of top salespeople and agency staff that are industry and property specialists and that pull together on the bigger listings to strengthen the service and coverage.
If I was a commercial real estate client today I know what I would prefer from the agency, and on that basis I would choose the second approach in granting an agent the listing. If you focus on quality listings, the property may just be so special and unique that you cannot do everything on your own. Bring other team members around you to help the sales pitch and the listing conversion.
Here are a few things that can help the team approach:
- A leasing opportunity is a reason to get your top property managers involved to review and address blow outs in property operational costs, lease documents, or tenancy mix. Over time this extra service will help you convert a property management listing.
- A leasing opportunity will help you with the client relationship and open the door on a potential sale at the right time.
- Property management appointments will create new business leads and deals in leasing and sales. Over time, the services and staff in your property management division should be of the highest quality to preserve and protect the future sale or lease requirements. Choose your property management staff wisely so they can protect this portion of your agency business. Use your property management staff as part of every pitch on quality property locally.
- Whilst you may be seeking just a sales listing appointment for your property, have your ‘marketing coordinators’ from your agency attend the listing presentation to give specialist comment on just how the marketing will work and where the enquiry is coming from today. Use graphs of response levels shown in the current promotional categories of website, internet, email, direct marketing, signboards, flyers, and cold calling. Use your database as leverage in the discussion.
It is not hard to win a commercial or retail real estate listing if you work as a team and use the skills of each person as the specialists that they are. Get your best people involved in your presentations.