In commercial real estate prospecting you will get lots of ‘push-backs’ as part of talking to new people. Some call it the ‘rejection factor’. Many agents take the rejection and use it as a reason to stop prospecting.
Show me an agent that doesn’t make the cold calls and prospect every day, and I will show you someone with low income and poor listings. Get the message?
If you have chosen a career in commercial real estate, then be prepared to work hard at prospecting. The requirement will never disappear; in fact, it will increase in importance. Rise to the challenge and connect with more people. That’s what prospecting is all about. That is how you become a top agent.
So the message here is clear. Understand that rejection is a part of connecting with new people and in finding new clients. Some will not want to talk to you or meet with you, yet others will. You need to find the right people that want to do something with property or are happy to stay in contact with you for the day that they need property help.
To make all of this work you have to create a solid and effective prospecting system that you do for 2 or 3 hours every day. That’s the rule that you must stick to. Over a period of 3 months your skills in the process will improve and your conversions will rise. Soon you will have quality listings and the majority of them will be ‘exclusive’. When you control your listing stock, the market has to come to you. That is why ‘exclusive’ listings are so important to commercial real estate agents.
So what do people say to you when you prospect? What are the standard ‘push-backs’? Try some of these:
- Not today thanks
- Send me something
- Call me back next week
- We already use someone else
- Too busy to talk right now
- We are just fine at the moment
You can most likely add to this list. There are so many variations that you strike. Most clients and prospects will ‘push-back’ at least twice in a prospecting or cold call situation. You will hear versions of the above statements.
So what should you do? You should be prepared for the rejection. Practice your responses so you can keep the conversation moving ahead. The advantage that you have is that you are the person that made the call; you can be totally prepared to connect in a professional way.
It should be said that your call should be made on the basis of a conversation and not a pitch. Find out what the other person is doing now with property and what they could require in the future. Make the calls and the ‘door-knocking’ work for you in that way.
In commercial real estate agency, you will work with many different landlords. They will have tenant and rental challenges. You can be the leasing expert to help them.
Have you ever seen a landlord owner of a property that tries to lease the vacant premises themselves? They usually put a sign up in the window and drop a few adverts in the local paper; they then sit back and wait for a result. The vacancy then ‘eats its head off’ in lost rent and outgoings costs. The ‘hope’ process doesn’t work well in commercial and retail property leasing.
So let’s say that you are going to approach one of these landlords to see if you can list the property for lease. Only do so on the basis of an ‘exclusive listing’. If you don’t do that, the landlord is likely to market the property and the vacancy around you. Any tenants that show an interest may also try and get a lower rental from the landlord directly. Protect your efforts and your commissions with wise listing processes.
You have real value that you can bring to a landlord in this situation. As a leasing ‘expert’ you should have a comprehensive database of tenant contacts locally that you can refer the listing to. Your database is very valuable when you pitch for listings. Improve the value of your database by prospecting for tenants and buyers every day. Sell your leasing services around your database.
Why is it that agents take on ‘open listings’? It can be a method of quoting the property to your database if there is no other way of you getting a ‘foot in the door’. That is the only reason you should take on an open listing. Control your market with ‘exclusive listings’. That is how you dominate market share.
The leasing advice that you give landlords as part of listing a property (or pitching for a listing) should include these issues:
- Define the target market specifically for the vacancy. This will help you stand out as an agent of relevance.
- Show the landlord what is happening at the moment with rentals, incentives, leases and marketing.
- Get a list of competing properties together so the landlord knows what the asking rents are like locally.
- The time on market will vary from time to time during a business year. Track that trend so you can give the landlord some solid recommendations regards property promotion and marketing.
- Ask for marketing funds to use in the property promotion. Any landlord that is serious about marketing will participate in the request.
- Provide some marketing alternatives so the client can make some choices.
Your leasing recommendations should stand out as the best in the area. Use your database to show the landlord that you have a few tenants to take to the property as soon as it is listed.