Build an Empire with Commercial Real Estate Prospecting

When it comes to your career in commercial real estate, nothing will fast track your results faster than a good prospecting model.  This then says that a prospecting model should be established into your daily business activities.

Prospecting for new business is quite a specific task and very specialized.  It should be regarded as something that requires practice and directed effort.  It takes about 2 or 3 hours each and every day to develop a good solid prospecting model.

This should also say that prospecting should be undertaken before anything else is done within the commercial real estate office.  If all salespeople within a commercial real estate agency did this, the volume of listings and the quality of enquiry would be far higher in just about all cases.  That will make the market share for the office more significant.

Quality listings and quality properties produce good enquiry.  It’s in tougher markets like this that we have today that we need a solid enquiry base coming from qualified prospects.  This is where your database will become highly important as part of your business activities.

Here are some ideas to help you with your prospecting activities and system.

  1. Determine a specific territory of prospecting.  That will contain the necessary numbers of properties and businesses that will produce the required commission that you want.  Make sure that the historic activity in the area has been significant and will remain so into the known future.
  2. Get to know all the local property owners of significant and important properties in your territory.  It does take time to identify property ownership structures and particular property owners; that being said, it still needs to be done and should be merged into your prospecting model.  Tackling property owner at a time is a good strategy to adopt in growing this market share as part of your prospecting system.
  3. The local businesses and business community will provide a significant volume of enquiry for you.  They will tell you so much about the local area and also of their property requirements.  In many cases they may own the property in which they are located.  They could also be tenants and on that basis they will require further leasing assistance at a later time.  Currently they may provide you with details of the landlord for any direct enquiry and networking.
  4. Go through the old sales records in your local region.  On average, most commercial and retail property will change hands in every 5 to 7 years.  That being said, the cycle can be a good source of future listing opportunity.  You simply need to identify the right people who have purchased or sold commercial real estate about four or five years ago.  They will again be entering the property industry in some way or form quite soon.
  5. Older lease transactions may still be current with business tenants.  They will however soon be reaching the end of the lease and require assistance in locating another property.  Every business in your local area should be entered into your database for the opportunity that it provides.  That being said, the tenants of today are also requiring local property market information.  You can be the expert to provide that.

To make your prospecting model work, a process of constant contact should occur.  The commercial real estate industry is built around trust and personal connection.

The first approach to a prospect, property investor, or business proprietor should be the simple beginning of a long-term relationship.  Over time you should be establishing meetings with those people and opening the door with property assistance at the right time.  Those being said do not forget about property referrals and referral relationships that exist with people that you already know.  Top agents do this all the time.

Jet Powered Cold Calling Tips for Commercial Real Estate Agents Today

When you work in commercial real estate, you really do need a top prospecting model to help you grab market share.  The faster that you do this the better it will be for your career.

The most successful top agents, still prospect every day to keep the pipeline of opportunity pointed in their direction.  If you are struggling with listings, now is the time to look at your prospecting system and refine it to something that is strong, and results driven.

I like to think of prospecting and cold calling as a ‘jet powered’ process.  It is a bit like preparing for an overseas trip on a large airliner.  You do all of the preparation work, you then turn up at the airport; you take your seat on the plane and then prepare for the ‘push in your back’.  The engines build to maximum thrust and then you power down the runway.

The analogy really works when you look at commercial real estate sales and leasing.  The preparation work has to be done; without that preparation you will not take off, it’s that simple.

Some agents are still sitting on the ‘runway’ when it comes time to turn on the ‘engines’, and some have returned to the terminal.  Perhaps they have thought that a more local destination may be more realistic in a taxi!  Perhaps they decide to walk home!

In this industry you get back that which you put in.  The results and the market share are out there to be grabbed by those salespeople that ‘push’ themselves.  Develop that ‘thrust’ when it comes to moving forward.

Experience says that prospecting will take you forward in a major way in commercial real estate.  Every salesperson in any location should have a prospecting model that works for them.  It will be a combination of a few different things that they do quite successfully every day.

Here are some tips to help your prospecting model:

  1. Devote 2 hours each day to prospecting.  In the first instance this can be done on the telephone as part of a systemised cold calling process.  The calls produce the meetings and that’s the way to make it all happen.
  2. Make your prospecting a daily event that you track in numbers of calls out, meetings, listings, and inspections.  Every number that you track will help you move ahead.
  3. Expect that some of the things that you do will be ‘dead ends’, and that is just fine.  Learn from the things that did not work for you and find those things that do work for you.  Importantly you should be taking forward steps every day.

If you need more listings or you want some more commissions, now is the time to look at your business and prospecting model.  If you are not getting your ‘fair share’, then the answer lies ‘within.  When you adjust your systems and processes you will find better outcomes are possible.

Commercial Property Agents – Use Checklists to Develop Your Sales Pitch and Presentation

In commercial real estate you need a top sales pitch to help you convert more business than the competing agents that you are up against.  In many respects you will only have 30 minutes with the client to convince them that you are the best agent solution to take their property to the market.

So many agents just ‘wing it’ when it comes to the sales presentation.  If you want to win more business the best thing you can do is create a great presentational model that is built on a ‘checklist’ approach.  Over time this will help you stay on focus and allow you to refine your approach when you find extra things that will work for you.  Soon the whole process of pitching and presenting will be so efficient and focused you will be winning more business of the quality that you require.

Your property market is something that you should know very well.  This knowledge and relevance has to get to the client in the presentation.  It can help you convert the business in a powerful way.  They need a local agent and that can be you.

Here are some ideas to help you build a presentational process and checklist that can really work well.

  1. Engage the client with relevant questions at the start.  To do this you should have comprehensively inspected the property and the general area.  In this way you can talk to the things that are important in the marketing campaign.
  2. Competing properties will impact your marketing campaign.  Show the client where those properties are and tell them of the pressures those properties present to the subject property.
  3. Every client will have issues and concerns.  You have to find them and the only way to do that is through questions.  Each question you ask should be taken to the next level when you sense that the client has some facts of relevance.
  4. Give facts about the market based on real evidence.  Those facts are likely to influence price, rent, marketing, methods of sale, and methods of lease.
  5. Tell the client where you see the campaign heading and why.  Clients like to see that we have a solid set of solutions and not just a generic approach to helping them.  Be very specific to the property.
  6. As a general rule, always seek vendor paid marketing and exclusive listings at all times.  These two facts will help you build market share and that is what you need to make your career strong and successful.
  7. Do not be afraid to walk away from a listing.  If the client is unrealistic or centred on facts that cannot work, do not waste your time in helping them. Let some other agent struggle with the difficult client.

Simple facts like these can help your presentational model and sales pitch greatly.  As the base of your presentation improves, you can modify the checklist approach so that you are moving to the next level of listing conversions.  Top agents do this all the time.

Tips to Winning More Listings Than Your Competitors in Commercial Real Estate Agency

In commercial real estate agency sales and leasing you will always have competing agents crossing into your territory and trying to take your clients and listings.  The only way that you can handle the problem is to be better than the competition in the ways that really matter to your customers and market.  Here are some ideas for that:

  • Prospect for new clients each and every day.  Over time you will need to fill the gaps in your database because some clients will move on for many different reasons.
  • Your current clients and contacts should be nurtured as part of a system of contact with relevant information.  Market information can always be shared with your prospects to help them understand just what is going on with local property.
  • Use the telephone each day as part of a contact and prospecting process.  You should generate at least 2 meetings per day from your call contact process.
  • Split your clients and prospects into categories of relevance and interaction.  Some of your clients will be of higher long term value than others.  Your benchmarks for client categorisation should be set on property type, level of property requirement, and repeat business.

When you look at the actions and results of top agents, it is the quality of the listings that takes them above everyone else.  Invariably top agents will have better properties listed on an exclusive basis.

It is the good properties that produce the solid and real enquiry from the market.  When you think the commercial property market is tough and slow, you simply do not have enough of the top quality listings.  If that is the case, take a serious look at your prospecting efforts and lift them to a new level.

It takes about 3 months to change your listing focus and that can only be done through new levels of prospecting.  Top agents will have weekly targets that help keep them on track.  They will know the numbers that they must maintain to get the local listings and the right levels of enquiry.  Here are some typical benchmarks that a top agent will work to:

  1. Numbers of outbound calls on a daily basis to new people they have not spoken to before.
  2. Constant contact with existing people in their database on a weekly basis.
  3. Conversions of calls to meetings.
  4. Conversions of meetings to listings or opportunities
  5. Conversions of listings to exclusive control
  6. Selling or leasing of exclusive listings
  7. Time on market for different property types and price ranges.

The commercial real estate industry is not really hard or different than any other sales related industry; it just takes real focus and directed effort.  When you do this the benefits soon occur and strengthen your market share.

Do you want more tips in commercial real estate agency?  You can get them in our Newsletter on this site.

Turning Commercial Real Estate Agency Challenges into Opportunities

In this property market there are certainly some challenges for commercial property investors and business owners.  Occupancy costs are rising or remain substantial, and locating tenants can always be a challenge if there is a high vacancy factor in the local area.  Supply and demand will always be a concern for commercial or retail property owners and investors.

In essence, the local business community is the backbone of the income generated from commercial property; when the economic environment becomes frustrating or slows down, the business community can take a conservative viewpoint.  That will then have flow through to the occupancy trends and rental payments in commercial property.

The local property market will recover from these challenges, however the issues exist now and there are some real opportunities for specialist commercial real estate agents in this type of property market if they respond to those challenges.  A keen eye for opportunity is required.  A diligent process is required to take the right action.

So exactly what are the challenges and how can we turn them into those opportunities that we need?  Here is a list of issues that we commonly see around the commercial property marketplace:

  1. Too many businesses not fully utilizing their available occupancy space.  They are then looking for sub tenants or situations of lease assignment.  That will allow them to ease the burden of any rental payments.  The abundance of space that’s available in any sub leasing situation will create a lower secondary market of rental.  That lower rental can destabilize the market rental in quality properties.
  2. Property owners are struggling with vacant space.  Too much vacancy space can mean tenant volatility and downward pressures on market rental.
  3. The levels of market rental vary substantially between properties in the same category because of the higher levels of vacancy in the local property market.
  4. The incentives that apply to new leases create a wide gap between effective rents and or face rents.  Many landlords are offering incentives to entice tenants to their property.
  5. The supply of new space to lease from new property developments is undermining the leasing situation in other established properties.

A top commercial real estate agent can see opportunities in these situations.  Behind all of these challenges and issues, are the facts of property occupancy that relate to successful businesses and tenants in the local area.  There are successful businesses out there; get to know their property requirements and build a strong relationship for the times that they will need to change property location or property type.

A successful top agent in this market will focus on the relationships that they have with the business community and successful property owners.  Getting to know the local businesses and all of the decision makers behind them will help with any future lease opportunities and lease placements.  This is where your database as an agent becomes so important to the future listings and commissions that you generate.

So the message here is that the existing property market has opportunities for those real estate agents that look creatively into the issues and challenges.  Get to know the local business proprietors and their requirements when it comes to property occupancy, property purchase or sale, and any relocation requirements.

The commercial property market doesn’t disappear, it just changes.  As real estate agents, we can adjust to those challenges and adopt our services to improve situations for business leaders and property owners.

If you want more tips on commercial real estate you can join our Newsletter at this site.

How to Negotiate Commission in Commercial Real Estate Today

In commercial real estate agency activities, you will know the importance of commission to the agent and to the business. A commission and your fees should be clearly supported by a legally accurate and enforceable appointment to act. That appointment should be signed by the client before you take any action on the property.

The client that signs the appointment should be the person that is legally entitled to do so. Whilst this fact may seem so basic, many agents and salespeople will bend the rules when it comes to agency appointments and suggest that they will get them signed later at a more convenient time.

Do the right thing

There is only one time to have an agency appointment signed, and that is at the start of the relationship between the agency and the client. Any work on the listing should not commence until the agency appointment is correctly confirmed and acknowledged by all the required parties. That being said, it is remarkable how so many agents overlook the requirement of the agency appointment or its accuracy. At the end of the day, this simple action can threaten the ability of the agency to recover the fees and charges applicable to all of your hard earned efforts.

Show me the money

When you have a confirmed and accurate agency appointment involving particular fees and charges relating to marketing, get those monies up front and into the appropriate agency bank account before the marketing commences. Many agents have been left out of pocket due to the attempted avoidance of costs and fees by the client after an unsuccessful sale or lease situation. In a tougher property market, not all listings will sell or lease quickly and effectively. On that basis every listing needs to be correctly structured, confirmed, and in place before the marketing and promotion of the property commences. Failure to do so is fraught with danger. Do not give the client any opportunity to avoid their costs, expenses, and obligations under the appointment to act.

Unsigned or incomplete

When it comes to the marketing of a property without the appropriate agency appointment, the client is in the box seat when it comes to manipulating the end result fees commissions and charges. Many a client has taken the opportunity of stepping away from financial obligations due to an incomplete agency appointment; many clients will give the agency appointment documentation to a good solicitor with the sole purpose of finding a loophole where they can avoid paying full commissions and fees.

Whilst many agents have learnt the bitter lesson of incomplete or incorrect documentation, do not put yourself through the financial pain or inconvenience. Do not give your clients any reasons or opportunities to avoid paying their financial obligations.

Handling the requests for discounts

Every so often you will come across clients that believe they are due for a discount on the commission charged at the completion of the deal. They will claim that they have some valid reason for discounting your commission contrary to the terms and conditions of the agency appointment. If this has not happen to you yet, it is only a matter of time. You must have your answers ready.

The correct and full commission is that which is allowed in the agency appointment. That is the fee to be charged. The agency should not be out of pocket for any reason whatsoever providing of the transaction was successfully and correctly handled by the salesperson.

What does the salesperson think?

If the salesperson believes that a fee should be discounted for some particular valid reason, then let that salesperson take the full impact of the discount in their percentage of the overall fee. In other words the agency should not be out of pocket because of the actions or concerns of the salesperson; the salesperson should take the financial hit if they really want to process a discount at the request of the client.

Do a great job and avoid the problem Professional business practices involve fair and reasonable commission’s fees and charges for the services provided. If you do a good job in the promotion, marketing, and negotiation of a property listing, there will not be a dispute or request for discounts on commissions and fees. Stay on the right side of the service equation and help your clients achieve the desired results.