Brokerage activities in commercial real estate can be enhanced greatly by planning set targets for growth, and in taking specific actions at a team and personal level. To get anywhere in sales or leasing it is wise to put in place those systems early in any brokerage career or in the establishment of a new real estate office.
Plans can be implemented across client activity, marketing, and listings. Each week or month the set plans and trends can be assessed for progress. They say that any agent or broker that is not working to a plan is wasting their own time if not that of the brokerage; the observation is very real and correct.
Know Your Property Market
Here are some tips to setting the right type of plans and progressing comprehensively as a real estate agent in your location:
- Competitors: Understand all of the competitors in your location for both property speciality and market share. Check out all of the listings that they may have on the market today. Understand if the time on market factor with each and every listing seems to be short or long when it comes to the properties they are marketing and promoting today. Determine who out of all the agents in the location seems to be the most successful in achieving results and for what reasons. Can you approach the property marketing process with greater momentum or effectiveness?
- Commission strategies: When it comes to a sale or a leasing appointment, there will be averages in the location that apply to the commission calculation. Some property owners will have certain expectations on the commission to be paid for any sale or lease. Whilst you should not be the cheapest agent or broker in the location, the commission rate that you charge should be correct and within the averages for the amount of work to be applied. It directly follows that you should show the client how you will be tapping into the local property market and resolving their current challenge relating to property; that is where the commission equation for the work applied becomes very important. Most clients will be prepared to pay a reasonable commission for a top service; your listing presentation needs to comprehensively cover that concept; differentiate between your services applied to open verses exclusive listings. Any client making a listing decision based entirely on discounted commission is not the client that you neither require nor should act for.
- Points of difference: To compete aggressively in any commercial property marketplace, it is necessary for you to provide a significant and real point of difference to your clients from their perspective. Your point of difference has to attract their attention and help them resolve the sale or lease challenge that they currently have. What can you do that is significantly better or different than that of your competitors? What processor or strategy can give you the competitive edge in today’s property market locally? You will need to do a full market assessment to understand the strengths and weaknesses of every agent or broker and how you can move into that market.
These three simple points of strategic planning will help you understand the factors of the commercial property marketplace that will be challenging or full of opportunity. From that point of understanding you can make some decisions and start to implement your business plan in commercial real estate brokerage. One final comment should be made here and remembered; any plan that you create today in commercial property should be tracked and adjusted over time. Things do change over time and you need to see that requirement when it happens; be flexible and adjust.
There will be shifts and changes in the commercial real estate market throughout the year. Your plan and approach relating to listings, clients, negotiations, and market share should be adjusted accordingly. When you have a strategic plan that is well under way, you can track the results and see the changes that are required as the market matures and changes.