6 Ways to Build Your Commercial Real Estate Agency Market Share

In commercial real estate agency, you really do need to understand what is going on in the marketplace and then make some solid choices at a personal level to improve your prospecting and deal activity.  Everything comes down to a personal level and process in our industry.  Success has little to do with the agency that you work for.

Outsiders and new agents to the industry are tempted to think that commissions and listings come easily.  Nothing could be further from the truth.  The quality and the growth of your business will come from personal focus and momentum.  The choices that you make on a daily basis, and the actions that you take in prospecting and marketing will drive your business forward.  The agents that struggle in the industry are those that have little or no system when it comes to business generation and market share.

Here are some strategies to help you initiate a business plan as a commercial real estate agent.  Consistency in focus and the actions that you take every day are the keys to getting momentum and traction with your market share.  Here are the ideas to help you:

  1. Understand the condition of the market today in deal activity, competing agents, and future growth.  Look for the opportunities in sales leasing and property management activity.  Understand where you fit when it comes to those three distinct disciplines.
  2. Choose the property type that you understand and can relate to.  That may be in office, industrial, or retail property.  The clients that we work for require specific expertise when it comes to resolving a problem with a quality property.  The marketing and inspection process with any listing is not an experiment.  It requires specific knowledge and expertise to tap into the right target market.
  3. Determine the cycles of the local property market when it comes to leasing and sales turnover.  You can do that by reviewing the history transactions through the region.  In most markets, a commercial or retail investment property will change hands or be upgraded at least once every seven years.  It takes that long for the appropriate capital gain to occur or the client to reach the next stage of portfolio change and growth.  Be sensitive to the cycles, and start prospecting the right people inside their property cycles.
  4. Start prospecting on a daily basis ensuring that you’re talking to new people as well as current contacts.  The whole process should take you about 2 or 3 hours per day every working day.  In a very short period of time you will find some new business opportunity.  When that occurs, keep the prospecting process underway.  That’s how top agents grow market share.
  5. When a competing agent puts a signboard on a property, it is an opportunity for you to talk to the property owners and business proprietors in the immediate and adjacent vicinity.  This then says that the marketing processes of a competing agent give you leverage when it comes to building your market share.  It is a fact that nearby property owners and business proprietors like to compete rather than cooperate with a nearby property sale or lease transaction.
  6. When you list a property, personally market the details of the property to the local region of property investors and business owners.  This involves door knocking and telephone calls.  From this process you will identify other opportunities to work on in the future.  Pay particular attention to the immediate property location and the streets around the subject listing.  Walk the streets and knock on the door’s to introduce yourself and the upcoming listing.  Ask questions and talk to more people; it is amazing how much information you will extract from the market when you do this.

Building your market share in commercial real estate agency is a simple and yet ongoing process.  You should have three or four solid strategies underway such as those above to help you connect with the right people and build the right relationships.

Commercial Real Estate Agents – 6 Tips to Improve Your Sales and Leasing Documentation

When it comes to strengthening your commission and listing opportunity in commercial real estate agency, you really do need to establish systems and processes that can support client contact and transaction accuracy.  Attention to detail will be part of that process.  Your knowledge of property type, documentation, fiduciary obligations, and client services are all critical to building your business professionally as a top agent.

It is interesting to note that many agents have been and will be sued due to negligence, documentary omissions, and poor professional services.  There is really no place in the industry for poor quality agents with below standard business practices and knowledge.  Over time their shortcomings in skills and knowledge will unravel their market share and can have an impact on future business for the agency.

So let’s say that you do have some shortcomings at the moment when it comes to documentation and professional services.  If that is the case, you do need to consider how your knowledge can be improved and skills developed.  In this industry, we never stop learning.  Over time you come across so many new and unique issues that require personal development.  Every property type can be regarded as unique when it comes to skill requirements.  Build your knowledge wherever you can through relationships and education.

Here are some rules to help you with strengthening your property transactions and opportunities:

  1. Keep a paper trail that is accurate and up to date with every property transaction.  It is surprising how frequently people will misunderstand or forget what has occurred relative to a verbal conversation.  You do need to back up your actions and transactions with a solid and accurate paper trail.
  2. Any verbal instructions or agreements should be documented in writing.  Whether that be in a legal document, an e-mail, or a letter you will need to make the right choice for the circumstances required.
  3. The marketing of a property should be fully approved in accordance with the clients instructions prior to commencement.  Get all of the draft advertising material approved by the client prior to lodgement and activation.
  4. Before you act on any property listing on behalf of the client, ensure that you have a legally binding and correct listing appointment document.  Some agents will ‘bend the rules’ and get the listing appointment signed later on; they then find that the client will avoid paying commission at a later stage.  There are also some big questions that arise here when it comes to risk and liability when inspecting a property that you have no valid listing appointment over.  Without a valid listing appointment, you cannot quote a listing.
  5. Understand the clients instructions from the outset.  Follow their guidelines and their targets when it comes to pricing, rental, marketing, and inspections.  Keep the client fully up to date when it comes to the latest property activity and the status of any negotiation.
  6. Ultimately you will be moving a listing to a contract or lease situation.  Some properties are quite complex and the associated documentation will be similarly so.  That being said, you do need to understand the complexities of the document required; when in doubt involve the appropriate legal specialists to help with the documentation.  Every document created as part of a sale or leasing transaction should be valid and enforceable.  In that way you protect your commission and client relationships.

You can likely add to this list based on your property type and location.  The clear message here is that professionalism is a key component of your commercial real estate business.  Strengthen your skills and improve your processes.