In commercial real estate brokerage, you will need to change your sales strategy from time to time as the market adjusts to economic pressures and financial activity. In any period of 12 months, your market share and property type activity will fluctuate between sales, leasing, and property management. For this reason, the sales team needs to adjust strategically with the presentations and proposals that they put forward.
Make no mistake, the new business opportunities are always out there in commercial real estate. It is just a matter of understanding how to reach into the market and identify the right people to work with. Certainly the proposal or pitch in your team will need to change from time to time based on market conditions.
Your success as a commercial real estate agent or broker depends on your flexibility to adjust to prevailing market circumstances. Here are some ideas to help with that:
- Be aware of the brand impact that you have in the market. The brand will be both for the brokerage itself, and also the agents individually. Can the brand be improved? How does it compare to the existing competitors in the local area?
- In an ideal world, you will be looking for increasingly activity across sales, leasing and property management. The quality of activity needs to be assessed from time to time. Good listings will give you better results and improve your market share. It should also be said that the exclusive listings should be part of that process. The agency team needs to be prepared for pitching their services at an exclusive listing strategy.
- Review the quality of the listings that you are working with. Quality does not need to necessarily reflect in price, but rather it should be the quality that attracts enquiry. The quality listings attract the buyers and the tenants that can act in these market conditions. Generally speaking the quality of the property will be in cash flow, size, location, current usage, and future usage.
- The best methods of sale and lease that apply throughout the year will change. Ensure that the brokerage team is working with the most appropriate marketing solutions for the clients that they serve.
- There will be the opportunity for repeat business and referral business from the customers that you have served over the years. There should be a VIP customer program within your business that encourages referral opportunities.
- Understand and promote the linkage between sales results, and leasing and property management opportunities. One thing can lead to another. When one transaction has been completed, prepare for the next property challenge that the client may be heading towards.
- Some clients have factors of investment focus and targeted portfolios. They need certain property types, cash flow, tenants, and locations to make their investments work correctly. Your top agents should be working with a select group of VIP clients to ensure that their property needs are well served within your brokerage.
In looking at all of these factors, review the last two years of listing and commission performance. Look for the market segments that have worked for your brokerage and identify any trends that could be shifting or changing. Will you need to change your property focus or staff profiles and activities? Be prepared for the change when you see it.
Identify the strengths and weaknesses that will need to be addressed as part of ongoing business operations. A successful commercial real estate agency or brokerage is usually one that is highly aware of and flexible to the trends in the market. They make the adjustments quickly and effectively. Tracking your business on a weekly and monthly basis across all business segments will be required.