Commercial Real Estate Brokerage – A Custom Designed Strategy to Work with Commercial Property Investors

Every commercial property is unique and on that basis every property investor will have special challenges to work with their asset.  In every property location there will be special factors to consider and challenges to resolve.  You can be the specialist for the location to help investors through the challenges that they experience.  The value that you can offer through a set of comprehensive property services needs to be carefully considered and promoted.

Know the facts locally

To successfully work with commercial property investors, it is simply a matter of understanding what they are experiencing in the local property market and how you can be the solution that they need.  With particular clients you can drill down into the unique challenges of a single property, its ownership, and its location.

So how can you do this?  You can do an analysis of property performance and property opportunity.  You can provide a real property performance plan based on solid recommendations supported by strategy and opportunity.

What can you do?

As the local property specialist, you can add considerable value to the services that you provide your investor clients.  Specialise completely and thoroughly within your location and within a small number of property types.  That specialisation will be of great value to the clients that you serve.

Here are some of the most common challenges that you will strike with property investors today.  These particular issues all require solutions:

  • Timing – Many property decisions will be based around factors of timing. Time will impact property cash flow, rental, tenancy mix, and occupancy.  Ultimately over time there will be property based issues that will flow through to changes in capital value.  Understand the timing factors for your location when it comes to selling, leasing, and property upgrade.  When it comes to selling or leasing a property, you can show your clients the best strategies of timing matched to the challenges within the asset.
  • Financing – Some investors will need to change financing strategies and structures during the ownership cycle for a property. There will also be the need for property valuations to support mortgage funds.  Understand the duration of financing applies to the clients that you serve.  You will need to strengthen the tenancy mix and the rental income to improve and enhance the financing position.  The loan value ratio between advanced funds and property value is a ratio to watch.
  • Cash flow – The leases within the tenancy mix will support the rental cash flow. Can add cash flow be improved?  How does the rental cash flow matched to the prevailing market rentals?  You can do a rental assessment and compare the results of the assessment to other properties in the location.
  • Portfolio performance – When you delve into the factors of property performance for your client, you can cover off on matters of income enhancement, maintenance management, expenditure controls, tenancy changes, and lease changes. All of these things each year will flow to the end result of property performance.
  • Vacancy factors – How can you improve the occupancy rates within the property? How can you find the best tenants to strengthen the tenancy profiles and lease covenants?  A good property will be strengthened by the tenants in the mix.  Look at how you can encourage and shape the tenant occupancy over time.
  • Property maintenance – You cannot own an investment property without spending money. You can however develop a strategy of timing that takes into account known expenditure and the performance of the asset.  You can set a budget in place incorporating rates and taxes, repairs and maintenance, capital expenditure, and property renovations.  Understand the future of the asset and the maintenance that will be required to improve it over time.

There are some good things here that can be tracked and managed for your investment clients.  You can provide some stability and controls to enhance property performance over time.

Understand the asset for what it is, and look at how you can bring change and opportunity to the tenancy mix, rental strategy, lease documentation, and property value.  Your clients will appreciate the real strategies that you bring to the process of property ownership and investment.

Get the Snapshot eCourse

You can get more commercial real estate brokerage ideas in our Snapshot eCourse right here.

230 Commercial Real Estate Online

Here are 5 topics for Commercial Real Estate Brokers around the World – 1. 4 Ways to Ramp-up Your Marketing Efforts, 2. How to do an Accurate and Valuable Tenant Mix Report, 3. A Blueprint for a Good Quality Commercial or Retail Property Management Budget. 4. How to Dislodge a Commercial Competitor, 5. The Tenant Mix Services that are Valuable Today. These are commercial real estate brokerage training programs by John Highman.
http://www.hipcast.com/playweb?audioid=Pc8fe0664c250c9dd537c8137b1e3ad7eZVh7QXpuY2F9Ww&buffer=5&fc=FFFFFF&pc=CCFF33&kc=FFCC33&bc=FFFFFF&brand=1&player=ap21

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Commercial Real Estate Leasing Agents – Taking Effective Tenant Enquiry is Easy to Do

In commercial real estate brokerage, the tenant prospecting process is a good part of the leasing business where you can create plenty of leads and listing ‘churn’.  Tenants will tell you so much about their property occupation, the landlord, and the neighbouring properties and businesses.  Talk to tenants every day and you will find lots of new business leads and listing potential just waiting to be acted upon.

Local Source of Information

So it is a fact that tenants are very valuable to the commissions that you earn and attract as a broker or agent.  They are a huge source of market intelligence and business opportunity.  You can track them in your database.

As part of connecting with those tenants you really should have a thorough and complete questioning process that gets to all the key facts of their property occupation and any upcoming change requirements.  You can do that directly and effectively.  It’s easy when you know what to say and do.  You can develop a checklist to the process.

Get to all the tenant facts

Here are some of the main rules to the process:

  1. WHO ARE THEY?: Understand who they are from the outset of the initial approach or enquiry. Ask plenty of questions so that you know who you’re talking to and how to contact them again in the future.  If they will not provide you with the appropriate contact information, then limit what you tell them about the listing and or the property market.  Your information is valuable, and they should trust you from the outset of any conversation.  A tenant that does not trust you is likely to be concealing a few problems and or issues.  They are also likely to be talking to a number of agents in the location.  Spend time with the tenants that are open and honest in their conversations and communications.
  2. WHAT’S UP?: What do they have now? Understand where they are located currently as a business and what they may be looking for in the future.  Drill down on the facts of occupation including occupied area, business function, staffing needs, customer profile, lease terms and conditions, and landlord problems.  From some very simple questions you can understand where you can take the leasing enquiry and create the conversion that you need.
  3. TIMING?: When do they need to make the change? There will be some critical time frames that apply to the leasing and property occupation process.  Some businesses have a timeline to property change.  That timeline can be impacted by annual business cycles, industry trends, and financial cycles.
  4. SHOW ME THE MONEY!: Understand the budgetary constraints applying to the tenant and within the property type that they are targeting. Some tenants have very little idea about recent rental activity and lease occupancy within a location.  They may have high expectations when it comes to changing premises, but little understanding about the rental budgets applying to occupancy in the particular precinct or location.  Don’t forget to include in your review the appropriate levels of outgoings that apply to lease occupancy in addition to any rental strategy or budget.  The total amount of money will be something that the tenant should fully understand and comprehend before they start looking at properties.  Make sure they can afford the property that they are seeking.
  5. THE IMPORTANT THINGS?: Question the tenant about any specific property needs and conditions. Certain businesses have particular requirements relating to property use, security, communications, staffing, and customer interaction.  When you fully understand those specific and special needs, you can match the property more effectively.
  6. WHERE HAVE THEY BEEN?: Appreciate what property the tenant has looked at previously and currently. It is quite likely that they have been working with or talking to other agents and brokers in your town or city.  They will have seen other property listings and developed an opinion of the property market from that process.  Depending on what they have seen and when, you will need to adjust your property short list and inspection processes.

From these simple and yet valuable rules, you can take any tenant enquiry directly and effectively.  It is easy to do and when successfully undertaken will help you shortlist the required properties in the required locations.

You can get more tips for taking tenant enquiries in our eCourse Snapshot right here.

3 Negotiation Strategies to Improve a Commercial Real Estate Brokerage Business Today

To be successful in commercial real estate brokerage you have to know how to negotiate through the challenges that you strike in prospecting, marketing, pitching, presenting, inspecting, and closing on your specialty property types.

It stands to reason that your negotiation skills are really important in what you do every day.  You have to ‘think on your feet’ as you hear about the other person’s concerns and perceptions in selling, leasing, or managing property.

Special Challenges

Some clients and prospects will present you with unique challenges as you move a property campaign or issue forward.  What you can do here to lift your conversions is prepare and practice your responses with the most common challenges.

Each week the entire sales or brokerage team can practice their responses to the common problems and issues that they find and strike each week.  They can share the issues that they find as part of client interaction and prospecting activity.  The team can learn from each other.  Through practice and sharing within the team, negotiation skills can improve.

Negotiation Skill Development

Here are some ideas to help you lift your negotiation skills as a team or as an individual:

  1. LOCAL PRESSURES: Be prepared to adjust your skills based on the pressures and the facts from today’s property market. Understand what’s happening with enquiry, current supply, and future occupancy predictions.  Look at the property and the local property market from the perspective of a tenant, an investor, and a landlord.  Assess the challenges in each case.  You can then do a swot analysis based on the challenges that you see today.  Share those challenges and your responses within the team.
  2. HOT TOPICS: There will be certain hot issues that are always rising to the top of a typical property negotiation. Those hot issues will be a negotiation practice priority when you are considering your skill development personally and within the team.  Issues can be specially considered such as the over pricing of a property, the failure to accept market conditions, or unrealistic expectations of the client or prospect from a negotiation.  When you look within the disciplines of commercial sales, leasing, and property management, there are always common issues that you strike in a regular and ongoing way.
  3. FEE SOLUTIONS: The fees that you learn and the commissions that you charge are also important factors of negotiation priority. Be prepared to pitch and sell your services in a comprehensive way and at a reasonable fee; that will involve negotiation practice and improvement.  Can you support and argue the value that you bring to a client from a fee perspective?  Ultimately the client just wants a good result in a timely way and they don’t want to pay too much for it.  Your fee argument and commitment should be built around an expectation of results.  As we all know, the cheaper services offered by less professional agents in the industry are ultimately counterproductive and time wasting for the client.

The message here is that you can do a lot for yourself and within the team when you practice your negotiation skills in a regular and ongoing way.  Take into account the existing factors of the property market and the pressures that you experience with your clients and prospects.  Practice your professional negotiation skills based on the challenges of the commercial property industry today.

You can get more negotiation tips for Commercial Real Estate Brokerage in our ‘Snapshot’ eCourse right here.

228 Commercial Real Estate Online

Here are 6 audio programs by John Highman for Commercial Real Estate Brokers around the World. 1. Robotic approaches to Brokerage, 2. What you must know about Prospecting, 3. Some rental structures in Leasing, 4. Vacancy as an opportunity, 5. Tenant Advocacy Blueprint, 6. Essential Cold Calling rules.
http://www.hipcast.com/playweb?audioid=Pb0185b893a08500fcaeab8b6fd33f00aZVh7QXpuY2F9VQ&buffer=5&fc=FFFFFF&pc=CCFF33&kc=FFCC33&bc=FFFFFF&brand=1&player=ap21

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Commercial Real Estate Brokerage – A Blueprint for Finding and Retaining Top Sales Agents

In commercial real estate brokerage there is always a degree of movement when it comes to sales agents.  Some don’t last in the role, some move to other brokerages for perceived better ‘deals’, and others stay for the long haul.  If you are managing a brokerage team, you will know what I mean.  Staff volatility can be quite high within the industry.  Unfortunately the success of a commercial real estate brokerage this largely geared to the balance between the sales activity, leasing, and property management.  You need good people in each of the rules to make the brokerage a success.

Strive for Stability

Ultimately you need some stability in the brokerage with agents; the property market will change in many ways, and the agents working for you have to adjust and work through those changes whilst bringing in the new business.  It is a fine balance to work with.  The very character of a sales agent is sometimes a real challenge to manage at the best of times, and even more so within the team.

Successful sales agents are usually a mixture of egos, knowledge, skills, and motivations.  In a large sales team, the individual agents must be balanced, encouraged, and rewarded.  Without those three particular attributes being active within the brokerage, an agent will usually leave for ‘greener pastures’ when the time is right.  That can then expose the brokerage to a significant loss or shift in income. Volatility within the team can also be a problem.

The Facts to Remember

So you want your brokerage business to be successful.  Here are the basic facts to remember and work with in any commercial real estate team:

  • You will lose agents for reasons that you cannot control, so prepare to find others. You can do that through a number of different strategies including personal contact, career nights, advertising, and team development.
  • Education and training will help your retained agents grow their skill base and performance. Understand the difference skill needs of the people within your team.  Assess their strengths and weaknesses on a regular basis.
  • The management of a sales team is totally different to that of a property management team. Each team should work autonomously but the business opportunities should feed between each.
  • Other competing brokerages in your location will be looking to attract your good people away from your business. Be aware of the competitive commission packages and salary opportunities offered to top performing agents.  Adjust your commission and marketing packages to retain your best people.
  • The changes within the property market throughout the year will present challenges and different requirements in property skills and knowledge. Be prepared to train your people in an ongoing way.

Given all of these facts, you will need an ongoing plan of staff attraction and staff retention.  The success of the commercial property business will generally hinge on the performance of the team and also that of the individual agents or brokers.  Individuals will be motivated in different ways.

You can get more tips in commercial real estate brokerage sales right here in our Snapshot eCourse.

227 Commercial Real Estate Online

Today’s program is largely about personal performance in commercial property sales. The audio topics are 1. How to create your own mastermind group, 2. How you can directly approach Investment Property Sales, 3. Some essential sales skills for brokers today, 4. Setting forecasts and goals, 5. Motivating yourself in property brokerage. These are commercial real estate coaching programs by John Highman.
http://www.hipcast.com/playweb?audioid=P792e4c9123bb38ed5ca8bdbea55b05adZVh7QXpuY2F9Vg&buffer=5&fc=FFFFFF&pc=CCFF33&kc=FFCC33&bc=FFFFFF&brand=1&player=ap21

MP3 File