In commercial real estate agency today, we all know that the property market is a bit of a challenge. That being said, there is still a lot of listing and commission opportunity to be had by the real estate agents that get organised and focused on the right tasks relative to their market and location. It is a daily process. Top agents do it all the time.
You could say that the whole process involves being ‘mentally prepared’ for each and every day that you step up to the ‘plate’ and strive for a ‘home run’. When the personal thought processes support your action, many more results are possible.
There is a cycle in this commercial real estate industry and it goes something like this:
- Start the day with prospecting for 3 hours
- From your prospecting effort you will create new meetings
- From new meetings with new prospects you will find business opportunity
- New business opportunity leads to quality listings
- Quality listings produce better enquiry than average
- Quality enquiries are what we need for a top database and property sale or leasing conversions
- Keep in touch with the businesses locally. They will tell you so much about the local area and what is going on.
So the mental preparation process is critical to the ‘chain of events’ and the outcomes that you seek in the commercial real estate industry. You could say that sales, leasing, and property management is a bit like a sport and you are the team captain, coach, and player. Your mindset has to suit each role and keep you on track to top performance and new business generation.
Have you ever watched a person play a sport and in doing so you can see that something is wrong with them? They seem to have a down attitude and it gets worse as the game progresses. That is a prime example of ‘mindset and focus’. For those of us that work on commission, the mind has to support your efforts. A good dose of focus is required before you get to the office or start your commercial real estate prospecting. A great attitude will help you greatly. Align your thinking to the task at hand; rise to the top of the market.
- Understand what has to be done
- Set your priorities
- Take action every day
- Know what your market is and where it is located
- Build strong relationships and keep connecting
The commercial property market will change throughout the year and sometimes for a few years at a time. Importantly you should be focused with all of your actions, prospecting, and marketing. Over time that will help you rise to the top of your commercial real estate market.
If you want more tips on commercial real estate prospecting, you can get them at our main website http://commercial-realestate-training.com/
In commercial property today, just about every listing will go to some form of competitive pitch or sales presentation process. This then says that you will be up against a number of other agents in the process. You will only have a short period of time to convince the client that you are the best agent of choice and relevant to their property needs.
There are some key factors to incorporate into your sales presentation to ensure that the client really appreciates the value that you bring to the process. Here are some of those key factors to help you structure your next sales pitch or presentation.
- At the early stages of the presentation, ensure that the client can see that you totally understand the property and or their current situation. Go through the elements of the property as you see them today, and restate to the client the focus or the requirement that they currently have.
- Every property will have distinct features and improvements that are relevant to a target market. Be quite specific in establishing that target market to the client, and give them some solid recommendations relating to how you will attract the enquiry from the market.
- It directly follows from the previous point that the property marketing campaign should be quite specific to the listing and the prevailing market conditions. Give the client some distinct recommendations and alternatives when it comes to property marketing. Get away from the generic advertising and promotional campaign. Give them something specific that they can see that is different and unique to your approach.
- Every client likes to be ‘special’ when it comes to engaging your agency and services. They like to know that you are committed to them in the listing, marketing, and negotiation process. They are three distinct stages that all have elements of engagement and specialty.
- You cannot achieve the levels of commitment to the client without having an exclusive listing. Make sure the client understands how an exclusive listing works and the types of feedback and interaction they will receive. If they still choose an open listing, then it is really just a matter of whether you really want the listing. Open listings will detract your focus from other exclusively listed properties. The client needs to understand that. If they are genuine in the listing process, they will choose an exclusive listing.
- Any strategy involving an open listing is really a waste of time for both the client and for you. Top agents will walk away from open listings. You cannot control your market, the enquiry, and the property promotion when it comes to an open listing. It is no secret that today most properties take time to sell or lease. The commitment and the marketing effort can only be directed through an exclusive listing.
- When it comes to connecting with the client as part of the presentation, some elements are not negotiable. Most particularly they are your market knowledge, confidence, and enthusiasm for the property situation. All three of these factors need to be correctly conveyed to the client so that they know that they will be making the correct choice when it comes to signing off on the listing with you and your agency.
At the end of any presentation, it is critical that you ask for the business. Top agents always ask for the commitment from the client as part of the close of the sales pitch. Don’t give the client an opportunity to avoid the process and seek further time to call and connect with other agents. Ask for the business.
When it comes to the marketing of commercial property today, the focus that you create through the campaign will help you build the enquiry rate and the inspection profile. It directly follows that a well-constructed campaign will give you a lot of leads and opportunities, regardless of the current and existing property market.
The fact of the matter is that far too many commercial properties are generically promoted and advertised. The features of each and every property should be identified and optimized in each marketing campaign. Those features should consistently flow through all elements of the marketing campaign.
Here are some tips to help the strategy behind your next marketing effort and property listing.
- What are the best days of the week to advertise commercial property locally? To some degree, the answer will depend on the attributes of the property and the target market. Commonly it is found that property marketing is more effective between the days of Wednesday to Saturday on a weekly basis. The fact of the matter is that you should know what days are better for your property promotion activity.
- Defining the target market will help you with the layout of the advertising campaign, the features to be promoted, and the channels of media that you want to use. In most cases, the Internet will be high on the list of marketing alternatives. It is both convenient and economical to use the Internet as part of the campaign; to gain maximum penetration on Internet based adverts use keywords associated with the property type and location. You can get these keywords from search engine research on a weekly or monthly basis. In that way you will stay ahead of the enquiry trends to the search engines and utilise the correct words as part of your advertising format. Most people enquiring regards properties for sale or for lease will go to the Internet first before they lift the telephone and talk to local property agent. Keyword optimization will help you with your enquiry rates from each property listed on the Internet.
- Professional photographs are critical when it comes to property promotion. If you want your advertisement to stand out efficiently and effectively, devote part of the vendor paid advertising campaign to professional photographs. Professional photographers know when to take the photographs, and how to make the property features stand out.
- Inspection feedback to the property owner should occur after every property inspection. This is both a conditioning process and also a communication advantage when it comes to helping the client see the trends of the local property market today, and how they will need to adjust their thoughts on price or rent as the case may be. This naturally assumes that you are getting inspections from your advertising. If this is not the case, have a serious look at your property promotional strategy and revisit the plan for any modifications that can occur. There are reasons why enquiries do not come to you. Resolve those reasons quickly and effectively at the earliest possible time in any property promotion.
- Test and measure every marketing campaign on a twice weekly basis. This will normally be on a Wednesday and a Friday. Observe the results that you get from every media channel and property advertisement. Test and measure the layouts together with the placement of media. In your location, some promotional processes will be more effective than others when it comes to commercial and retail property. Make the right choices, and the enquiry will come to you regularly and directly.
When the property market is slow and tough, the marketing process becomes even more critical. Every property listing that is exclusively promoted should be subjected to scrutiny and strategy throughout the entire campaign. In this way you will be a top agent producing the best results from every listing on your books.
In commercial real estate today, there are some significant opportunities for lease renegotiation. Some tenants would seize the opportunity for a rental reduction or lease adjustment in exchange for some benefits back to the landlord. This then says that you can through this process stabilise the tenancy mix, and rebalance the property for the longer lease term.
When the business community is under some pressure in regards to trade or occupancy, the lowering of the rental over the short term is a satisfactory exchange for other lease terms and conditions that will have benefit for the landlord. The pressures on tenants and businesses today will not remain so forever. A lower rental for 12 months can give you tenant stability through difficult times, whilst preparing the property for greater capital gain or future sale. This is what lease strategy is all about and these are the ideas that we can give our clients to help them with tenant and lease optimisation.
Lease renegotiation opportunities are normally structured into a tenant retention plan. That tenant retention plan would identify the tenants that are critical to the future of the property, and then seek to retain these tenants for the long term. Things should be done to assist them to remain in occupancy conveniently and economically. The landlord therefore benefits by tenant and rental stability. There is however the need to achieve a tradeoff and benefit for the landlord if you are to give the tenant a benefit today.
Here are some ideas that can apply to the landlord benefit process. This is assuming that you achieve or provide an adjusted lower rental for the tenants in occupancy.
- Get the tenant to exercise their option in the property early. By exercising the option, the landlord knows that the tenant will remain in occupancy for the longer term. That is the base benefit.
- You can adjust the terms of the existing lease so that the prevailing make good conditions are more beneficial to the landlord at the end of the lease term. You can obligate the tenant to undertake further renovation works if they choose to leave the premises at the end of lease. This then prepares the premises for alternative occupancy with a new tenant, at a lower cost to the landlord.
- Any lower rental today, can prepare the tenant for a higher rental at some stage in the future. This assumes that the business can be seen to be successful in coming years and months. The lower rental today provides the tenant with breathing space for generating income and repositioning their business. Over time they can likely achieve a better ability to pay the rent.
- Any longer lease term provided to the tenant today should include a renovation requirement. They can be obligated to renovate the premises in a particular way at a certain time. Normally leased premises require renovation every five years. That renovation can include painting, carpeting, and cosmetic upgrades. A suitable agreement can be struck with the tenant and appropriately documented as part of an agreement for a lower rental today.
It is in property markets like this where we can be assisting the landlords to reposition their property and stabilize the tenancy mix. That is the high value of experience and knowledge in commercial and retail real estate that we can apply to help our clients at this time.
In commercial real estate, it is frequently necessary to create and submit proposals for the sale and lease of properties. Every property owner or potential client will have special needs and conditions to feed into the proposal structure. That being said, the proposal to sell or lease a commercial property should be quite specific and not generic.
Generic proposals are no more than an advertising document. They rarely win the business. Clients and property owners today require proposals that are quite specific to the trends of the current market and the needs of the particular property. Your competitors will be on the mark to attract the business, so your proposal must be very good in all respects.
Top commercial agents prepare proposals that are unique and special when it comes to resolving the particular property challenge of the client. Here are some tips to help the process.
- At the front of every proposal document, there should be an executive summary that clearly brings all the critical elements together in one short page of dot points. Simplicity is the key to converting any proposal to a successful transaction or listing appointment.
- In most cases, a proposal to sell or lease a commercial or retail property should be relatively short and specific. Bulky documents are to be discouraged. In the case of ordinary properties, most proposals will only need to be about 15 to 20 pages in length. That being said, it is interesting to note that many agents will create bulky documents of double that size simply to talk about generic property trends and their relevance as a local agent. The key to winning any proposal is to be specific in what you say and give solutions based with clear recommendations. At every opportunity, talk about the property and the solutions that are available.
- The proposal should specifically talk to the local property market today and the trends that are clear and apparent. Tell the client how those trends will have impact on the property marketing process and negotiation. This will have significant benefit at a later time when any potential prospect has been identified and commences negotiation on the property.
- In every proposal document, it is wise to clearly restate the client’s requirements of sale or lease so that any misunderstandings are removed from the presentation or pitch. This then aligns the agent to the intentions of the client and the requirements of the property. Clarity is important.
- The target market for the property should be defined and quantified. That target market will be the focus of the marketing campaign to be described in the document. The particular target market should be summarised in both the levels of current enquiry and types of enquiry. The particular property will have property improvements that may suit the marketing campaign and the target market. Those improvements should be featured as part of the marketing campaign.
- The marketing campaign that is documented in the proposal should have two or three alternatives and budgets. That will allow the client to formulate a decision based on expenditure and the recommendations of the agent. Invariably when the client has a choice regards marketing costs, they will usually choose the middle ground in each case.
- Every proposal to sell or lease a commercial or retail property should have a fee base that is competitive but not discounted. When it comes to selling or leasing commercial property, fees should be one of the last considerations when it comes to choice of agency. An experienced and qualified agent will add far more value to the sale or lease process than any discount that is offered as part of the proposal or sales pitch process. Top agents sell their skills and relevance as specialists to solve the concerns of the client. When this is done well, the requirements for any discount are well forgotten by the client.
- In some respects, and with certain large or special properties, it will be necessary to clearly define the experience of selected staff in the marketing of the property. This becomes quite important when you consider marketing larger and complex investment properties. Top agents have more experience and will usually feed that experience into every proposal document.
- As part of every proposal, it is wise to give the client some graphical display relating to the time line of sale or lease. There are many stages to move through before the property will achieve a successful outcome. Many clients do not understand those stages and the importance of them. When undertaken correctly, this graph or graphical display can show the client the clear relevance of your people and your agency in solving of the property pain.
So these are some of the main items that can apply in the creation of a proposal to sell or lease a commercial or retail property. You can add to these items based on locational factors and particular important issues attributable to the property.