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Planning Your Commercial Real Estate Prospecting Has These Advantages

In commercial real estate agency it is wise to plan your prospecting efforts and actions.  On an average working day many different things will put pressure on your prospecting.  Unfortunately many agents will drop the prospecting activity for the slightest reason.  Over time that single choice will have a major impact on the way they grow their business and market share.

So you have some choices here:

  • You can grow your real estate business and market share through directed effort each day on a client, property, and street by street basis, or
  • You can randomly make calls and contacts if and when time permits.

The comfort zone is a big challenge for many agents and it will slow their listing chances and commissions given half a chance. When time gets tough, keep prospecting and stick to your plan.

To solve all of these issues it is best to have the prospecting plan that gets you in front of more property investors and business owners.  It has to be specific and relevant to your property market and sales or leasing territory.

Not everyone that you talk to will want to do business with you or even discuss property issues; that is quite OK as you really should not waste you valuable time on people that do not have a need or and interest.  Talk to more people and build your skill in doing so.  Over time that one single fact will help you in so many ways to become a top real estate agent.

Many new brokers and agents to the industry struggle with finding clients and prospects to talk to as part of prospecting.  The soon know that growing market share and commissions depends on one thing only and that is prospecting; when they get focused on it they also soon know that prospecting is a complex and dedicated process.

Here is a prospecting plan for you.  Expect it to be a challenge to your diary and daily activities.

  1. Get to know the streets and businesses in your primary sales and leasing territory.  On a street by street basis, identify the property owners and the businesses in occupancy.  Talk to both.  Find out what they are doing in property now and in the future.
  2. Review the other listings in the area that are listed with other agents.  Use those listings as reasons to talk to other property owners and businesses in the same street and general location.
  3. Check out the old sale records for your region.  Find those property owners that purchased property about 3 or 4 years ago.  On average those property owners are going to be the next to come back into the market in some form or another.  Connect with them for that process.
  4. Every property listing that you have on your books will be an excuse to talk to other businesses and investors. Use your quality listings in this way. Over time your current listings will give you more leads and information to act on.
  5. Walk the streets in your property precinct.  You will find and see information that you can work with.  Take plenty of business cards with you to leave at the reception desks, and with the business owners that you see or drop into.
  6. Use the telephone to make plenty of cold and warm calls to your market and business owners.  Track your progress and your calls with a good database.

Prospecting in commercial real estate does not need to be hard but it does need to be systemised.  In that way you can steadily improve your market share.

You can get more commercial real estate training tips in our Newsletter right here.

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How to Be a Better Commercial Property Manager

In commercial property management it is easy for a manager to get tied up in the daily events of the property and the client.  Quite soon they are just doing a job rather than providing a professional service.  The pressures of the job soon take over and the ‘bigger’ picture of property performance gets lost in the events of the property.

Quality property performance and control involves a forward looking approach to the asset given the market conditions, tenant mix, and property improvements.  Strategy and timing are everything in the services to be provided.  The property manager must have the discipline and the skills to do the job well; that involves a good fee and the right person for the job.

So many local property brokerages and agencies claim to be the ‘best’ at what they do in managing a client’s commercial or retail property.   If that is the case then they should be able to prove that they are indeed the ‘real deal’ when it comes to quality property management services.  Quality and accuracy are key components of the services to be provided.  There are real differences between the services provided in office, retail, and industrial properties.  The property manager should understand each and be proficient in one or more based on experience.

Why do I say this?  It is a fact that many commercial and retail property managers are overwhelmed with daily work due to the demands of the client, the size of their portfolio, and an imbalance in fees for service.  Many agencies set lower management fees just to get the appointment to the property.  Those fees then have little relationship to the requirements of the client and the increasing demands of the property and tenant mix.

So the ‘golden rule’ in pitching for a property management is to understand the package of services that will best suit the client and the property.  If you apply your fee assessment on an ‘industry standard fee’ as a percentage of passing income, then track that back to the work required and the size of the property and tenant mix.

Here are some other facts to add to the assessment:

  1. Client focus in the future of the property
  2. Property performance challenges from the leases and the tenants
  3. Vacancy profiles and upcoming leasing challenges
  4. Long term plans for the property including renovation and refurbishments
  5. Tenant mix changes and lease critical dates
  6. Cash flow requirements from the rental and the outgoings
  7. Property improvements and maintenance
  8. Targets in rent, operational challenges, leases, maintenance, and reporting
  9. Business plans and tenant retention
  10. Tenant lease negotiations

There are some real facts and issues to be managed here.  A good property manager chosen for the property type will understand how to do that.  Balance your client’s fee for service against the time required in management and the challenges of the property.

You can get more tips like this in our weekly newsletter right here.