In commercial real estate today, every service that you offer should have specific value related strategies. It doesn’t really matter whether you sell, lease, or manage commercial real estate, but it does matter that you understand the valuable outcomes that you provide to the clients that you serve.
Every person in your agency should understand the values that are provided by your agency and business. In this way every sales pitch and presentation can be improved and optimized. Consistency in your message is really important.
To win a listing in today’s property market, your services are to be of the highest value and of great relevance to the client. The generic approach in commercial real estate will give you poor results. There is no point in being like every other agent.
Why are you the best agent in the local area? It’s an interesting question. When you know the answer, it will be very easy for you to pitch and sell your services in sales, leasing, or property management. Top agents know how to do this and you should also understand the process.
When you look at the differences in service that can be provided, you can see specific values that are real and relevant to the clients that you act for today. Here are some cases in point.
Commercial Real Estate Sales
- The ability to tap into some comprehensive database that is real and up to date. That database will help you minimise time on market and create property inspections conveniently and effectively.
- The right methods of sale to attract the appropriate enquiry in today’s market. The method of sale should be relevant to the property type and the levels of current property enquiry. The ways in which you take a property to the market will send a message to the local property investors and business owners.
- The marketing systems that can help spread the message into the target audience for the particular property. Those marketing systems should be specific and not generic. They should reach the target audience effectively and comprehensively over a well-directed marketing campaign.
Commercial Real Estate Leasing
- A comprehensive list of all the business owners and business proprietors through the local area. That list could be updated continually to ensure that you know when those businesses need to expand, contract, or relocate into other premises.
- Tenant advocacy services that can help tenants to find the right properties in the right location. Tenant advocacy is quite a specialised service and it requires the services of a highly experienced leasing professional. They understand the lease strategies, rental types, and occupancy costs. They know how to put good leases together and can serve their tenants well. That being said, the tenant in such situation is the client.
Commercial Real Estate Property Management
- Commercial property management is quite a specific service and should not be undertaken in your agency unless you have the right people. A good property management service will include income control, expenditure management, risk management, property compliance, maintenance strategies, lease documentation, and tenancy mix management. Make sure that you have at least one highly experienced commercial property manager on your team that knows what to do and how to do it. They can then train other more junior people that come through the ranks.
- Retail property management is distinctly different than commercial property management and to a large degree is more intense. In retail property and with shopping centres, you will find that the intensity of management service is higher and therefore the fees are higher. You need the right people that have experience in managing shopping centres with large numbers of tenants. The fact of the matter is that a good retail property manager will help build your business due to the experience and relevance they apply to the properties that they manage.
So these are some points of difference that can be built on. Specialisation in the industry will always give you leverage. Make sure that your people provide the specialisation that your clients need and then send that message out into the market at every opportunity.
In commercial real estate today, it pays to undertake the necessary market study before you open the commercial real estate office for trading. Preparation will help you attract the right market of clients and prepare the right resources to drive your business forward. Your marketing plan should form part of your business plan.
A successful commercial real estate office will be built from a fine balance of resources, and the right people. Regrettably is somewhat hard to get good people to work in the industry at a high level for a long period of time. It is notable that there are fewer top agents in comparison to ordinary agents. The ratio is probably 2 in 10.
This leaves the opportunity wide open for ordinary agents to move to the top of the industry providing they establish solid performance systems. The proprietors of real estate agencies and businesses require top agents to give stability to the agency and grow the commission base. Whilst it sounds obvious, it is harder to achieve. The proprietors of commercial real estate agencies are always on the lookout for top agents or those people that can be shaped into that level of performance. It takes a person with a particular mindset and drive.
Here are some tips to establishing your marketing plan for your commercial real estate office:
- Determine the size of your market geographically. Ensure that the area is realistically comprised of quality properties and potential clients. Within that region, you can identify the history of transactions over the last few years. Ideally you will be looking for an area that is under change or expansion. Given that the commercial real estate industry is based around local business occupancy, you should also incorporate the review of local businesses into your initial market study. Look for an area that has a vibrant business identity and future. Look for an area that has an abundance of quality properties or vacant land to be so. Look for and area that is growing or active.
- Within your defined territory, identify the property types that will produce the necessary commission for your business. It may be that those properties require staff specialisation. That is certainly the case when it comes to retail property and retail leasing.
- It is somewhat easier to build a new commercial real estate office from a base of industrial property sales and leasing. That is simply because the property type is basic and straightforward. It is also easier for you to apply relatively inexperienced staff to that property type. Over time they can then graduate into Office Property and eventually Retail Property if that strategy seems suitable and the market opportunity exists.
- The size of local properties will dictate the size of commission. That being said, it is necessary to target the right quality listings in the right locations from the moment that you open your doors as an agency. Exclusive listings will produce better quality commissions over time. Initially you may find it hard to encourage exclusive listings, although the attempt should not be overlooked. Initially you will probably need to accept open listings and have your salespeople work on that general stock. When you eventually achieve greater market churn and success, it will be easier to convert exclusive listings given that you will then have a track record.
- Undertake a competitor analysis throughout the region. Some of those competitors will be more successful than others. Identify the reasons for that success and determine the points of difference relative to each agency and salesperson. How will your agency compete against those competitors? What can your agency do as part of attracting new business? How can you pitch for listings against the established local agencies?
So these are some key ideas that can be merged into your commercial real estate marketing plan. Other local area factors should also be considered and merged into the plan.
Before you open the doors of your new real estate office, ensure that you are fully aware of the strategy that needs to be implemented and the staff involved in the process. You can then create your staff attraction process to find the right people for the business.