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Creating Unlimited Opportunities in Commercial Real Estate Brokerage

In commercial real estate there are unlimited opportunities for real estate agents to earn good income and grow market share.  In saying that, the results achieved are all driven by personal effort.

There are 3 separate skill bases or services to the market and each are quite specialised.  Decide what you like do and what will give you the most reward (physical and financial).  There is no point in attempting to do something that you do not understand or like; that will be too personally restricting.

So the 3 skill bases are:

  • Commercial and investment property sales
  • Investment property leasing
  • Commercial and retail property management

Some agents will choose to work on both sales and leasing.  That is a good thing as the skill bases are similar and they are linked when it comes to working with clients.  A leasing client today is likely to be a sale or purchase client in the future.

The skills required to be a property manager are a bit different, and the long term target when working with property management clients is that of providing professional service, and not just a single deal (as in sales and leasing).  Property managers for that reason are ‘deal oriented’ but ‘service strong’.  Building relationships over the long term is really what professional property management is all about.

If you have chosen commercial real estate as a career for yourself, then understand your character and its best ‘fit’ for the tasks at hand.  You can work in any or all of these 3 segments or sections of the market within your agency.  Choose the section of the industry that is best for your skills, knowledge and business style.

To move ahead in our industry it is best to prepare a set of goals and a small personal business plan.  That strategy will help you with progress and adjustment during the year.  Here are some more tips to strengthen your push and direction as a real estate agent:

  1. Motivation – You may have heard a lot about motivation and its requirement in any career.  In our industry it is a very personal thing.  Self-belief is a good thing, but action taking is far more important.  Every day you will need to do specific things that can be a challenge.  On that basis your levels of personal motivation must be significant; no other person can make things happen for you.
  2. Goals and targets – When you know the section of the market that you are working in together with your location, your goals can be set based on not just the personal performance that you are capable of, but also the ability of the market to give you opportunities.  It directly follows that you will need to know your market and its growth factors and possibilities.  Research is required to understand the history of local sales, leasing, and property management (depending on your skill base).  Make sure that your town or city has the growth possibilities that you are looking for at a personal level.  Ensure that you know how you will be tapping into those possibilities.
  3. Putting your plan in motion – As with any plan certain actions will be required.  Every day you will be required to focus on new business, new people, and new properties.  That is in addition to everything else that happens with current clients and properties.  The most successful people in our industry are those that spend a good part of every day focusing on prospecting for new business.  From the earliest stages of your career, set this rule in motion.  Watch how results come back to you and track your results.  Make adjustments in your prospecting and cold calling so you are growing your business in any property market and at any time.

These three factors are perhaps the most important to help you get traction and market share as a broker or agent.  Look at what you are doing today and make adjustments where necessary.  Strive to improve on a daily basis in commercial real estate agency.

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3 Common Mistakes in Commercial Real Estate Brokerage Today

It is a fact that the commercial real estate market today is under some pressure and is also highly competitive.  For you to be successful in your career in the industry, you will need a plan of action and a tracking mechanism to understand what’s working and what needs to change in your business model.  Notice I said ‘your business model’?  Most agents and brokers don’t have one!  They simply let the days pass with little focus and random action.  That is a recipe for losing business over time.

The commercial property industry is not all that different from city to city, state to state, and country to country.  The property problems are all similar and simply need understanding.  Taking direct action in your market every day will help you see the opportunities to work on and the clients to serve.

Having worked in the industry for some time, I have seen three distinct mistakes made by the majority of brokers and agents in the industry.  Some of those agents eventually adjust and resolve their mistakes, whilst others overlook them to the detriment of their market share.

So what exactly what are these three all too common mistakes?  How can you deal with them?  Here are some ideas:

  1. The most common mistake made by all brokers and agents centres on prospecting.  They simply fail to develop a prospecting plan that they can work to every day in a consistent way.  They let the pressures of the day overtake their diary and business activities.  Soon prospecting becomes item number 8 in a list of 10 issues.  Inevitably the broker or agent never gets to the prospecting process in a regular way.  If you want to rise to the top of your industry and generate reasonable market share, you will need a prospecting process that you can work to every day. Prospecting should be item 1 in your diary.
  2. Success in the industry is largely built on established relationships with key people.  Whilst a prospecting model as mentioned earlier can drive more new people towards you, you do need to establish ongoing contact in a consistent and relevant way.  When you first connect with new property owners and property investors, most of them will not have an immediate need for selling or leasing.  That will however change over time, and you need to be there for the moment where experience and property expertise will be needed.  Most top agents in the industry win the new business due to establish relationships built over many years.
  3. Marketing processes will vary from property to property and city to city.  That being said, your marketing processes should be specific and special; they need to stand out around all the other agent generic advertising.  When a client or prospect picks up the newspaper or reviews the Internet, they need to see your advertising and property listings as special and unique within the property type.  A property listing that is well marketed will attract many other clients to you over time.  Build your marketing skills to increase the brokerage profile with the property speciality.  Improve your marketing skills to show the people in the industry of your relevance.

These three simple factors will have a lot to do with your success as an agent or a broker.  Choose to improve each of them at each and every opportunity.  Stand out as the top agent that you want to be.  Be prepared to go that little bit further in all three of the categories.