Posted on

Goal Setting Tips for Commercial Real Estate Agents

In commercial real estate agency the goal setting process is quite important to the new business, listings, and commissions that you must to create.  Without those goals and targets it is hard to know if you are improving individually, and or if that is applying across the team.  Rarely will an entire team all reach peak listing and commission performance at the same time.

Any real estate agency without a successful performance management system and established goal structure is an agency that is doomed to failure.  So many things happen given a seasonal listing and sales cycle that the trends and results from the market just have to be tracked; that tracking then should be related back to the performance of individual agents and salespeople.  A successful real estate agency is a team effort.

Every property market is different and the same can be said of competing agencies within a market.  The mix of property offering, listings available, and agency staff capability will all create challenges. Here are some rules to help you establish your goals and targets:

  1. Define the period and the market segment that will apply to the goals to be set.  At any one time there will be differences between office, industrial, and retail property. The same can be said for sales and leasing activity in each.  Assess your competitors as part of that process.  What is your market share?
  2. Understand the history of the area when it comes to property transactions and time on market.  Look for the patterns that apply to market activity.  In any period of 12 months there is usually an activity period of 10 months where most of the business will come in.  Look for the lag time between listing and closing on a transaction.  What are people looking for in the market today and do you have plenty of those listings on your books or available for prospecting?
  3. What growth can you see in the property market and in what segments?  Get details of the changes to population and business growth in your local area.  Is there to be further opportunity for growth in those segments?
  4. Look for additional income or commission streams that can be built from sales and leasing activity.  Generally that will be in property management, tenant retention planning, project leasing, renovation, or relocation strategies and plans.  Set the critical factors of performance that matter to the business.
  5. Work from a basis of team goals and break that back to team members, territories, transactions, and property types.  Get the team to come back with their estimates and targets given their market segments and property types.
  6. Set regular updates and progress meetings from those established and agreed goals.

A successful commercial real estate agency is a reflection of established business performance plans.  The team targets are realistic for the available skill mix and the prevailing market conditions.

Posted on

Commercial Real Estate Agency Performance Standards that Matter

In commercial real estate today, every salesperson and every agent will require close monitoring when it comes to certain factors within their job.  Through this monitoring process, it is easy to identify if the agent or salesperson is lacking in some respect and requires knowledge or skills improvement.

It should be said that most salespeople require knowledge improvement and skills practice over time.  None of us are experts in everything.  Commercial real estate is a specialized part of the industry and even after many years of successful career activity, top agents should still be learning.

We all require skills improvement and regular practice.  That is why we should have regular sales team meetings and incorporate role playing into those team meetings.  In this way everybody can learn and practice from each other.

The property market is relatively difficult and challenging at the moment; many circumstances and problems will be experienced across the team.  Agents and salespeople can share these challenges as part of the team meeting, and then role play the solution or strategy to be used in resolving those common challenges.

Team meetings?

It should be said that many salespeople hate lengthy team meetings and role playing.  Those salespeople that have been in the industry a long time are likely to be those that offer the strongest resistance to personal improvement and change.  Through all of this, the top agents always know that practice is required and ongoing skills improvement will help their listing conversions and commission growth.

So you have a choice here; you can be one of the many that refuse to learn, or you can be one of the few that look to improve and grow their knowledge and their skills.  It is a simple choice and the answer should be logical.

Here are some performance standards that should be tracked by you as an individual, or if you are the sales team leader, the standards can be monitored across the team.  The standards will then show you if a particular person or perhaps even you personally will require some skills upgrade or knowledge improvement.  Don’t be afraid to learn, it is simply a factor of business.

  1. The number of signboards on properties in your local area.  This should be analyzed at the level of agency and salesperson.
  2. The numbers of properties advertised on the Internet per suburb, per salesperson, and per agency.
  3. The number of outbound calls made each day to new people
  4. The number of meetings created from cold calling and networking.
  5. The amount of new listings coming in each week
  6. The ratio between open listings and exclusive listings
  7. The amount of vendor paid advertising committed as part of the listing process.
  8. The numbers of inspections created per property and per salesperson on a weekly basis
  9. The size of the database for each particular salesperson
  10. The accuracy of the database and the volume of information maintained in that database
  11. The closing ratios to listings on a salesperson and property type basis.
  12. The amount of referral business converted from existing clients and closed transactions

You can quite likely add to this list based on your agency activity and agency structure.  When you track your numbers, you then know where skills can be improved but you also know where you are succeeding and growing.  These numbers will always assist you to stabilize your networking activities and therefore grow your market share.

The industry is not complicated; it just requires systemized processes and tracking.  When you do this, you will achieve more momentum and the personal success that you require will be easier to achieve.  You will know exactly where you are going and how you are proceeding.

Posted on

Commercial and Retail Property Management – Performance Standards for Better Managements

It is very easy in commercial property management to forget about performance standards as part of serving the clients that you work for.  In any working week, the activities of the day can get away from you and the job just ‘gets done’.  Any standards that you are working towards can easily be forgotten.

It is the larger and more sophisticated property owners that require careful attention and for that reason, performance standards are really important.  You have to track the processes and systems that you provide for all owners; some of them will have special procedures and standards that must be respected.

It is up to the property manager to understand the property and the client in ways that allow them to provide the performance and portfolio outcomes required.  If the client is not happy then the property will suffer and the income will slide.  It is for this very reason that the top management agencies have well qualified people employed in the property management division.

Top property managers cost money from an employment perspective; however they should be attracting and managing the best properties in the local area as part of their employment.  Each managed property should be charged a reasonable fee for service.  If you skimp on fees, then you skimp on people, and that is a ‘downward slope’ when it comes to servicing demanding and specialised property management clients.  Over time you will lose these clients if they are not well catered for.

Here are some benchmarks that should apply to performance standards in commercial and retail property management today.  A property manager and management agency should be judged on these things quarterly and annually.

  1. Vacancy rates in the property will be of concern to the property owner.  Track the vacancies and make every effort to remove them with a well-constructed lease.
  2. Tenant management and relations can improve a property and its performance.  The property manager should be connecting will all tenants regularly to ensure that any problems are well responded to and actioned in keeping with the landlord’s requirements or instructions.
  3. Income control will help the landlord in many different ways.  Keep on top of income collection and arrears management.
  4. Expenditure management is quite important throughout the property financial year.  For this very reason it pays to have a budget that was set with the approval of the landlord.  During the year the property can be tracked to the timed budget and any shifts in performance can be responded to early.
  5. Business planning will help the property in many different ways.  Creating a business plan for the property at the start of the year is very wise when it comes to complex tenant retention and lease management.  The plan can remove any unexpected events.
  6. Lease management will always be a key component of your property management service.  As part of that process, seek to minimise the threat of vacancies by implementing your tenant retention plan efficiently and directly with the landlord.
  7. Monthly reports and landlord communication will help the property service remain on track.  All monthly events and outcomes should be incorporated into the report as a tracking tool for issues and property control.

A property manager and the agency should be judged on these issues.  You can add to the list as your location or property type demands.  These factors become the performance standards by which your property management service can be judged.