In today’s podcast you can learn how to optimise your activities as a broker or an agent in your location. Those activities apply to both sales and leasing activity. Refine your working day so that you can boost enquiry, presentations, and client interaction. This is a personal thing that needs to be considered and developed as a system for every individual agent and broker over time.
Consistency is an important thing in commercial real estate brokerage. That is the consistency that happens when it comes to client contact, prospecting, and presentations. In this podcast, you will learn how to build some consistency in your actions and in your property market. Drive your business forward with greater levels of consistency on the things that really matter from a listing and commission perspective.
In commercial real estate, there is no point in listing a property unless you know what you are going to do with it. You need a marketing plan from the very start, and that plan should feature early in your client conversations and property presentation. Show your confidence so that the client can see that you are listing the property with a purpose. Put some strategy into your ideas and conversation.
Confidence in Property Presentations
So how direct and confident are you in your property
presentations now? While we are all different in how we approach
the listing process, your style and character can and should feature positively
in your listing process. Here are some
ideas to help you with that:
Client motivation and targets – Ensure that you question the client comprehensively and that you know the property in all respects before you go too far in the listing process. There will be strengths, weaknesses, issues, and facts to identify at the earliest stages of client and property engagement.
Set the target market – Be clear and precise about your property market and what it is doing. Your client wants to see that you understand things and how the client’s property fits into the local area and or the competition of other properties. Again, put some strategies in your comments on this. Lead the conversation with facts and strategies.
Define the inspection process and method – Tell the client how you will be taking people through their property and what you will be focusing on as part of that process. Build some stories around the features of the property and show how you see those features helping you with the inspecting people.
Give reasons for the best method of sale or lease – Don’t just put a property on the market for sale or lease. Show the client how you can vary the intensity of marketing and enquiry through choosing the best methods of sale or lease. Have some evidence to support the recommendations that you are making.
Set timelines to your listing approach and marketing process – It generally takes time to list and sell or lease a commercial property. You can simplify the whole process for the client by using a visual timeline that you can then show the client as part of your listing activity. That ‘visual’ approach can be the ‘roadmap’ to display your marketing efforts and listing strategy.
Schedule your marketing plan to a strategy – Just about every agent will use the ‘generic’ approach to marketing with most of their listings. They simply get a property into their listing books and then they promote in some basic way. They don’t overly consider timing, media choices, and intensity. You can change all that and show your client how important it is in the business approach you are taking to resolve their property challenge. Be different and relevant to your marketing recommendations; have a plan that is proven and logical. It is wise to have a solid ‘game plan’ when it comes to marketing any exclusively listed property. Notice the focus word here is with ‘exclusivity’.
So, these are specific ways you can list a property with a
real ‘purpose’; you are putting the client at the centre of your real estate
business. You can build a real support, and
directness to your professional property services. That will help the client see that you are
the ‘agent of choice’ when it comes to listing and marketing their property and
solving their property challenge. That
is how you will win more listings over time.
When you are about to meet a new client to discuss their property, prepare a list of questions beforehand to get to the facts of what the client is trying to achieve. There are five key questions here that I always start with when meeting a sales client for the first time. Preparation is the key to a productive sales marketing campaign. The questions help with that.
Of course, there are always more questions that evolve from the first five questions, so be prepared to probe the client for information, and document the answers that you get. Preparation is the key to getting to the real facts of the property and the client’s situation. Note taking is then wise to protect yourself from misleading events or later disagreements.
Why ask all these questions? Well, it is a known fact that some clients will hide or not disclose the full information about a property. They tend to think that withholding the negative information at the start of marketing will give them a higher price or perhaps better enquiry. The reality is that any hidden information will usually come out in the sale or due diligence process.
The buyers of commercial and retail real estate today are smart and informed. The earlier you can get all the facts about the property, the better it is for you and the client. Explain to the client that they must disclose all that they know.
Watch for What Is Not Said in Listing or Sales Negotiations
As another note on this here, any hidden information will usually do a few things to your transaction including:
Stop the negotiations and any progress
Threaten the legality of the transaction
Jeopardise the ability to achieve a settlement
Risk the transaction being taken to court
Allow claims to be lodged against the property owner and agent for misrepresentation
Don’t allow yourself and or your client to be involved in these difficult situations. Get to the full facts of every property transaction before you take it to the market; when in any doubt ask more questions. Through all and any property enquiries, do not speculate about any information that you may not have available.
Key Sales Questions
Here are the key questions that I believe are the starting points for getting to all the client’s property issues. These questions allow you to go further and deeper into issues identified:
When and why did they purchase the property? This question allows you to understand the original motivations of the client in the first acquisition. Perhaps they purchased the property for investment and or as a base for their business to operate. When you know why they purchased the property, you can then judge whether the asset has satisfied their needs.
What is the ownership structure of the property? Sometimes there are multiple owners and or decision makers to the sale and marketing of commercial or retail property. Understand who they are, and more importantly, that you understand their motivations and agreement to proceed.
What are the restrictions and limitations applicable to the property? Some properties will have issues of operation, compliance, legality, and function. The best way to probe these things is to use a checklist of questions that you know would apply to property types in the location.
Has the property been on the market recently? It is very possible that they have tried to sell the property recently. If that is the case you must know about that activity and the results that evolved from the promotion. Buyers locally will see the listing coming back into the market; you must have your answers ready.
Why are they selling and what is their target price today?Perhaps these are quite direct questions, but the variety of answers that you get will help you with knowing the momentum that the client may have towards any sale and marketing process.
As mentioned, these questions allow you to go deeper into the client’s situation and their property as it appears to you today. Be prepared to ask these questions and others as part of the listing meeting and before the property is released to potential buyer enquiry.
In commercial and retail real estate, there are different ways to find new property management listings and clients. Some strategies are more successful than others. Either way, the growth of a portfolio under management is a good part of commercial real estate brokerage today.
A thriving and successful brokerage and agency business will have an established process to finding new management appointments. That process will or should be ongoing.
So why do this? The object here is to build growth in a property portfolio under management. That portfolio will bring fee stability to a brokerage and potentially future sales and leasing stock over time. Every person in the sales and leasing team should be encouraged to raise the ‘property management question’ in all interactions with good clients and established contacts.
Locating Good Properties to Manage
Where can you find new property management business? Try these for starters:
Sales activity – as properties are sold, some purchasers are investors in some way or form. They don’t have the time or the skills to control the leases and cash flow from investment activity. The greater the number of tenants in a property, the harder the work involved. They will likely need property management help. Recognise the complexities of property management with arrears, lease management, vacancy reduction, and property optimization. Sell your management services through to buyers of your listed properties.
Leasing activity – every lease converted will allow you to ask the question of landlords as to how and who manages their property now. Are they happy with their existing property controls and services? Are there things that you could do that are better?
Referral business – knowing that you should have a good list of clients or properties on your books now, the referral question is a strategic advantage. When should you put the referral question to, and who should ask it? Sometimes the sales and leasing team must be reminded or shown how to introduce the idea of property management services into a meeting and or a discussion.
Large investment groups and companies – many larger corporations have property portfolios and need help with facility management, property management, reporting, and risk reduction. Generally, those companies are not property specialists, and they do not want to employ teams of people internally to solve day to day property problems. Can you offer a cost-effective and professional way of managing properties to those larger groups and businesses? Build a ‘corporate property management package’ to be specifically promoted in your region and those identified key corporate groups.
Family businesses – some successful family businesses put money back into the property or their portfolio. Research all the local property owners to find those families and understand what they own. How could you help them with rent collection, vacancy reductions, and property optimisation?
There is a good foundation of new property management business to be extracted from this list of initiatives. Build a system of business development around it and shape it to your location and preferred property types.
Show me a commercial or retail property manager, and I will show you a busy person. Rarely will a property manager have much spare time; 10 hour working days are not uncommon. Systems of control and reporting are required to keep the workload of a property manager in balance and optimised for the best results.
Large properties have teams of people to control and respond to the numerous property events as they happen; shopping centres are a case in point.
Property Management Pressure Points
So, why is a commercial or retail property manager so busy? Here are some of the most common reasons:
Large properties are active assets of importance and volatility. Lots of things are happening most of the time with tenants, customers, maintenance people, and property performance.
Reports have to be prepared and submitted on critical property facts such as income, expenditure, budgets, lease events, and critical dates. Every landlord will have certain requirements with their reports and facts.
Maintenance issues will be both planned and unplanned. Either way, they have to be managed to a budget and a safe outcome. The larger the property, the more complex the maintenance events; risk events also have to be watched. There will also be ‘unplanned matters of crisis’ that occur, so be prepared for all issues. It pays to have some structure in place to monitor all the larger mechanical elements of the property to contracts and routines. If you have a good group of contractors, the maintenance issues are supported by contractor communication and regular reporting.
Financial matters vary throughout the year. Income expectations will vary based on occupancy, leasing, incentives, expenditure, and tenancy movement. That being said, most of the factors of property income can be structured to a budget, so the client does not have too many variables to contend with. A good property budget will bring stability to an asset over time.
Undertake a lease audit as soon as possible and stay ahead of lease events and critical dates. The greater the number of leases in the property, the more significant the time required to keep ahead of lease changes, dates, and events. A lease audit will show you the critical dates and lease changes applicable to rent reviews, options, outgoings reconciliations, and the lease expires. The important fact to remember here is that all leases should be optimised for a good market rent and long-term Vacancies will happen, but you can stay ahead of lease vacancies with a proactive marketing campaign to attract new tenants. That is what shopping centres do most of the year, so they are not exposed to rental disruption when leases come to an end.
Taking all of these points in balance, it is easy to see why a commercial or retail property manager is ‘busy’ most of the time. When they are then loaded with more assets and properties, the ‘busy factor’ just gets deeper. Ultimately that can lead to stress and property performance problems. Unfortunately, that is all too common in the industry.
There are differences to consider in a sales pitch for a lease listing in commercial or retail real estate. You are working with elements of rent, vacancy factors, supply and demand, property types, and certain target markets of tenants. Landlords need a bit of help in knowing how you see the ‘attraction factors’ that apply to their property. Tell a story about their property and how you will move on the leasing requirement; demand exclusivity for your intense focus and time commitment.
Before going too much further here, it should be said that the leasing part of our business is very lucrative as you can connect with plenty of local landlords and that can lead to sales appointments over time. Be prepared to work with lease listings and convert them; go ‘deeper’ and make direct calls to local or targeted tenants.
Quality is important in working with lease vacancies and the different properties. That is a rule to ‘live by’ in brokerage. Choose the properties that are likely to create tenant interest. Know what motivates a tenant to look at or take up a property. That knowledge can be gained and used as you talk to plenty of local businesses.
Listing Facts for Presentations
Take every potential lease listing and do a ‘SWOT’ analysis before you engage with the landlord client. You are then prepared to ‘pitch’ for the listing. Here are some things for you to talk about with the landlord as the client for you:
Levels of enquiry – show the landlord what is happening with the inbound enquiry and list the questions by a group as to what tenants are looking for. Will the landlord’s property satisfy that list of questions?
Property types – put the client’s property firmly in a property grouping for the zone. At that point, you can then tell the client what they are up against with other listings and lease offerings.
Location preferences – explain how different tenants look for location advantages such as roads, transport points (ports and airports), location to end users or markets, and other local businesses. Some locations are more attractive than others when it comes to those elements.
Target marketing – shortlist a few tenant types that will be valuable in the target marketing process. Your promotional strategies can then be direct and deliberate as you spread the word about the property. Tell the client how you will do that.
Local area comparisons and coverage – list the competing properties in the precinct, and then take some photos, get the property facts in each case, and look at the strengths and weaknesses of each property. The competitive position for the listing is then something that you can talk about with the client and make some clear recommendations.
In saying all these things, simplicity is important in what you say, do, show in the listing process or pitch. Help the client see and hear how you can move things ahead with a direct focus on results. That is the best way to pitch for a commercial real estate lease listing. Be different, real, and relevant to the property and the client.
In an average working week, as a broker or an agent, you will attend plenty of meetings with clients and prospects. Your listening skills and meeting strategies will be tested; they should be refined and optimized for each situation that could evolve.
Improve your communications skills and your listening skills. Strategically connect with ever more people in your location and with your property marketing activities.
Accurately listen as part of a property discussion or negotiation. Watch what happens with all your conversations relating to commercial property, and know what is being said by the stakeholders.
Take notes to support discussions and progress; send off an email soon after a discussion to detail the current position. A full understanding will help you with your position of negotiation or the desired strategic outcome.
The Challenges of Negotiations and Clients
It is a fact that some clients will be more difficult than others when it comes to negotiation, listing, property documentation, and marketing. The same levels of difficulty apply to prospects and the third parties to any transaction.
Through all stages of the property transaction, there will be issues to discuss and opportunities to create. Improve your professional communications skills through practice and deliberation. Set your communication systems in place to help you with prospecting, listing, and presenting properties.
Here are some rules that can help you with all your listening skills, client connections, and negotiation opportunities:
Where possible, choose the place and the time to meet with other parties as part of any property negotiation or inspection. Try to keep control of the discussion or negotiation through meeting location selection and timing.
Check your property and listing information before you give it to others. Ensure that you have all the supporting documentation validated and ready to display or use in any inspection and or presentation. Expect that you will get questions on property matters, so have your supporting information ready.
Don’t just listen to the other person but watch what they say and observe how they do it as part of explaining their position or negotiating. The body language of the other party will give you some valuable indicators to work on progressing a transaction forward.
Understand all the alternatives that can apply to the negotiation. Do the people or stakeholders in the transaction need to achieve an agreement, or can they walk away from the discussion?
Take plenty of notes as part of a negotiation process and meeting or conversation. Your notes will help you in the future remember what was said and done or perhaps agreed. Sometimes disputes occur between the parties in a property transaction, and your notes will be the only way to protect your position and recollection.
Ask plenty of questions relating to a property and or client situation. When in any doubt, ask more questions. As you get the answers that you require, observe the other party in what they are saying and how they are saying it. Look for the problems of interpretation and message accuracy.
Qualify any comments and restate the position of the other party. The stakeholders to a property transaction will have a position or belief so you will need to document that fact accurately and legally for the property and the client. Don’t proceed with documentation until you know that all is correct.
Any action that is agreed between the parties will need to be taken in a timely way. Timeliness is important and can sometimes be a ‘deal breaker’. Know the legalities of the matter, and how you can document things accurately for the client’s position, their instructions, and the facts of the property.
Listen carefully and comprehensively as part of each property meeting and negotiation. Establish your rules and your systems of communication control so that every negotiation can be directed and shaped towards the outcomes that the client requires.
Your ability to set up a clear marketing system will directly impact your results and enquiries in commercial real estate brokerage. If you want to pull in the interest of buyers or tenants, then the marketing system should be specific and direct.
Don’t fall for the ‘general’ approach to property promotion. Put your full efforts into your real estate business; talk to people and build promotional momentum in the target audiences.
As you grow your listing base and market share, you should have more exclusive listings under your control. There is a limit as to the number of listings that you can handle at any point in time. Property types and size of property will dictate the ‘limit’.
Know your Limits
Some property promotions can take a lot of your focus so know what you must do to attract the people to your property listings, and then seek the listing terms of engagement and marketing that you need.
Here are some ideas to help you develop your system of property promotion or marketing. Add to the list as you see necessary:
Inspect the property before you do anything else. Understanding the property and its location will give you more leverage in the client conversations around marketing and marketing costs. Take plenty of photographs in and around the property as you do the inspection; those photographs will help condition the client in the marketing conversation.
Develop an inspection strategy and use your photographs to illustrate the processes of inspection to be used. If the client can see that you do know the property and how to hold the inspection with buyers or tenants, then the listing and marketing conversion in a lot easier.
Define a target audience and talk about where they come from, how you will reach out to them, and why that target audience will listen to you. Help the client see that you can engage with the target audience with great effect and in a timely way.
Draft you adverts and then have another person review the layout, content, and correctness. Some brokerages today have a specialised person undertake that process for all advertising. In drafting the adverts, remember the property features and the ‘keywords’ that are likely to attract more property enquiry.
The ideal release of the marketing campaign should be part of a strategy and a timed process. Use a Gantt chart to show the client how you will approach the listing, inspection, and negotiation processes. The visual approach helps when want to enlist the thinking and decision facilities of the client or prospect. Gantt charts do that quite well.
Mix your online and offline marketing effectively. It is a known fact that newspaper advertising is becoming less effective and is highly costly, so a balance of media choices should be given to the client when listing for their marketing consideration and reflection.
Go direct where possible when promoting a listing. The direct approach helps with finding businesses and investors looking to move and or grow their property portfolio. Every listing is a good reason to talk to many people. You could say that ‘exclusivity’ is part of that process.
Review all your activities weekly so you can see where things are happening and how small adjustments can happen to your business approach with prospects. A successful year in commercial real estate brokerage is a combination of many different strategies deployed to a plan and a system.
So, all these things will help you develop your approach to property marketing with your better-quality listings. Take the steps forward to engage with your property market, prospects, clients, and business owners every day.
Your systems will help you achieve good results in your business. Don’t wait for the enquiries to come to you; go out and find the enquiries.
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