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commercial real estate training

Match Clients to Properties in Commercial Real Estate Brokerage

The longer that you work as a commercial real estate agent or broker, you will soon understand the priorities of property choice and performance when it comes to certain clients and prospects.  With that knowledge, you can match clients to properties and create transactions off market.

So every client will have certain priorities when it comes to property choice and investment performance.

Consider the following factors and opportunities:

  • The income from a property may have allowances for growth given the rent review profiles within each lease document.  Some leases are better than others.  Some rent review strategies are also more effective than others when it comes to rental income performance.  Understand the differences between the available rent review strategies and how they can be shaped within a lease negotiation.
  • A new lease today with a lower rental start point can be shaped into a substantial income cash flow over time; that is providing you choose the right tenants and the appropriate rent review strategies.  A good lease negotiator will understand the important factors of rental positioning and growth at the time of lease negotiation.
  • Diversification can be an advantage when it comes to property portfolio ownership.  If the client focus for a portfolio is too much within the same property type, the client can open themselves up to income instability when the market changes.  The threat of a vacancy can be a real problem when the market shifts and changes.  So there are different property types to choose from including office, retail, and industrial property.  There are also different locations within a town or a city all of which can provide alternatives and opportunities as the market changes.  Look at how you can provide your client with portfolio stability through property diversification.
  • Review your area for properties going through change in lifecycle due to age and redundancy.  The older properties may soon need a refurbishment and or material change of use.  That can then lead to a variety of redevelopment, leasing, and sales opportunities.
  • You can sometimes match the right people to the right circumstances; as an example you can bring a property developer together with a property investor.  You can add to that equation a local financier with appropriate funds.  You then simply need to add a suitable property to the relationship, and you will have the recipe for a potential property development and major project.  Multiple sales and leasing opportunities can then follow.
  • Some clients are very skilled when it comes to property improvement and repositioning.  They understand how to take a difficult property and turn it into something that is more successful and highly marketable.  It is not unusual for a client in that situation to turn a property around and resell it within a period of 5 to 7 years.

 

A top agent tends to work with clients and prospects in different ways.  To do this, it is simply a matter of understanding the needs of the client, the opportunities of the market, and the different strategies that can be applied to bring a deal together.

There is nothing more rewarding than to put a deal together off market away from the pressures of the competition and the scrutiny of other agents.  When you announce the deal to the world through an editorial or press release, the other agents are soon recognising that you are the top agent with all of the contacts.

By John Highman

John Highman is an International Commercial Real Estate Author, Conference Speaker, and Broadcaster living in Australia, who shares property investment ideas and information to online audiences Worldwide.