In commercial real estate brokerage you have one or two directions to take. You can let the property market come to you with any leads or opportunities, or you can go out there and find the new business that is available. The latter is preferable.
Get involved with connecting with new people every day. Put prospecting at the top of the list when it comes to new business activities in your daily diary. Don’t let any person or career pressure divert your activities away from new business prospecting.
A common problem
All too often you see brokers and agents avoid the requirements of new business generation. They soon lose market share and fail to convert commissions. Here are some facts to be remembered about commercial real estate brokerage:
- MOMENTUM: It takes about 3 to 6 months of dedicated prospecting activity to generate some listing churn and commission flow. Many agents and brokers struggle to maintain the required prospecting momentum and organisation. That can be an amazing opportunity for the small segment of people that can keep things under control.
- KEEP THINGS MOVING: When the new business starts to evolve, don’t stop prospecting. It is very easy to slip back into a situation where commissions and listings are hard to achieve. Avoid the peaks and troughs of the industry by continually prospecting regardless of the business that you are currently generating. Understand the lead times between prospecting, client contact, listing conversion, and negotiating. I go back to the point that a time frame of about 3 to 6 months exists in the industry as an average business cycle.
- CONTACT LIST: The database that you create is perhaps the most important business tool that you will use. Protect your database and its information. Keep in regular contact with all the people within the database so that you know when they move to a point of action or challenge when it comes to local property.
- IMPORTANT CONTACTS AND PEOPLE: The relationships that you strike with clients should be nurtured and encouraged in a relevant way. Provide local property information freely and directly to the clients and prospects that you have identified. Free local property information will always be of interest to property investors, business owners, and industry professionals.
So the secret here is to develop a proactive approach to commercial real estate brokerage. There are always plenty of opportunities to be found, nurtured, and converted.
Local property investors and business leaders are always on the lookout for assistance when it comes to leasing, sales, and property management activity. Get involved with the people in your property community and maintain ongoing relevant contact so that you can build your database and grow your market share.
You can get more proactive tips and ideas in commercial real estate brokerage right here in our eCourse.
In commercial real estate brokerage, it is very easy to get swamped with daily events and reactive issues. Many people will want a slice of your time. If uncontrolled, this can lead to a downturn in listings and market share. In simple terms, you need to implement a system that allows you to stay ‘ahead of your game’ in commercial real estate.
The rewards in the industry are many, providing you stay on track and implement the correct system. It is a personal process that cannot be delegated. Here are my top seven tips to help you stay ahead of your game as a top agent or broker.
- Start the day with focus. Each evening you should be preparing for the following day by planning your time and the key issues that need to be done. Identify the four or five key issues that will have maximum impact on your client base, listings, and market share. Those things should be a high priority in your daily action plan. Get all of those things done before you do anything else. When you feel in control, you get more things done. On that basis, control your diary at an obsessive level.
- Understand the high value of prospecting and growing your database. Devote approximately 2 or 3 hours to prospecting and client contact. Split that time equally between new contacts and established contacts. Track all of the conversations, the meetings, and the presentations that you make, so that you can see when your ratios and numbers are improving.
- As a general rule, focus on exclusive listings more than anything else. The exclusive listings will allow you to build market share, focus your inspections and negotiations, and service the client comprehensively. The agents that struggle in the marketplace are typically those that have difficulty with converting exclusive listings. You simply must control the listing stock.
- There is a big difference between being proactive and reactive in the industry. At least 40% of your day needs to be proactive and in that case should be directed towards prospecting, marketing, and client contact. Unfortunately you cannot remove the reactive element of the industry given that you will be working with many different people who will impose on your time. That being said, take the necessary steps to control the impact and limit the exposure that you have to other people’s priorities. Manage your time accordingly.
- Every listing can be extensively promoted, and then adjusted to the market conditions. When you have sufficient marketing feedback on a particular listing, you can make the recommendations to the client that will shift the enquiry rate and the inspection results. Don’t take too long to get to the point of repositioning.
- Review all of the listing stock locally including those listings that belong to your competitors. When they place a signboard on a property, make contact with all the other businesses and property owners in the region surrounding it. They may like to compete with the other listing in the same street.
- In your town or city, you will find that commercial property ownership is typically for a period of 5 to 10 years. At or during that time, the property owner is likely to expand their portfolio, or replace the property asset with another larger property. When you track the cycles of sales from the region, you can identify the best clients to work with for upcoming property activity.
When you look at a list like this, there are plenty of issues to action and matters to get under control. I go back to the point that you really do need to be proactive and not reactive in this industry. Spend at least 40% of your day getting involved in proactive issues and strategies. Soon the commercial real estate market will open up with opportunity in both listings and future clients. Stay on track to your plan.