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An Action Plan for Finding New Property Managements

city buildings at sunrise

In commercial and retail real estate, there are different ways to find new property management listings and clients.  Some strategies are more successful than others.  Either way, the growth of a portfolio under management is a good part of commercial real estate brokerage today.

A thriving and successful brokerage and agency business will have an established process to finding new management appointments.  That process will or should be ongoing.

So why do this? The object here is to build growth in a property portfolio under management.  That portfolio will bring fee stability to a brokerage and potentially future sales and leasing stock over time.  Every person in the sales and leasing team should be encouraged to raise the ‘property management question’ in all interactions with good clients and established contacts.

box front on leasing program
Commercial Leasing Program

 

Locating Good Properties to Manage

Where can you find new property management business?  Try these for starters:

  1. Sales activity – as properties are sold, some purchasers are investors in some way or form. They don’t have the time or the skills to control the leases and cash flow from investment activity.  The greater the number of tenants in a property, the harder the work involved. They will likely need property management help.  Recognise the complexities of property management with arrears, lease management, vacancy reduction, and property optimization.  Sell your management services through to buyers of your listed properties.
  2. Leasing activity – every lease converted will allow you to ask the question of landlords as to how and who manages their property now. Are they happy with their existing property controls and services?  Are there things that you could do that are better?
  3. Referral business – knowing that you should have a good list of clients or properties on your books now, the referral question is a strategic advantage. When should you put the referral question to, and who should ask it?  Sometimes the sales and leasing team must be reminded or shown how to introduce the idea of property management services into a meeting and or a discussion.
  4. Large investment groups and companies – many larger corporations have property portfolios and need help with facility management, property management, reporting, and risk reduction. Generally, those companies are not property specialists, and they do not want to employ teams of people internally to solve day to day property problems.  Can you offer a cost-effective and professional way of managing properties to those larger groups and businesses?  Build a ‘corporate property management package’ to be specifically promoted in your region and those identified key corporate groups.
  5. Family businesses – some successful family businesses put money back into the property or their portfolio. Research all the local property owners to find those families and understand what they own.  How could you help them with rent collection, vacancy reductions, and property optimisation?

There is a good foundation of new property management business to be extracted from this list of initiatives.  Build a system of business development around it and shape it to your location and preferred property types.

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Action Tips and Tactics for Commercial Real Estate Brokers

In commercial real estate today, you will find that the competition and the market can become quite frustrating unless you are taking sustained and consistent action each and every day.  The agents that rise to the top of the market are those that have an action plan and a business strategy.

It stands to reason that the best commercial agents and brokers have the best business plan.  Certainly that is the case; however their business plan is supported by business activity and consistent focus.

Here are some strategies to help you with establishing your market share and business activity.  You can modify the list or add to it as appropriate given your sales territory and brokerage brand:

  1. Don’t spread yourself too thinly in the marketplace.  Concentrate your prospecting on a zone by zone basis.  Each zone can contain approximately 100 properties.
  2. Track and measure all of your activities with particular attention being paid to prospecting and cold calling.  Every day ensure that you are reaching out to new people as part of your growth of customer base.
  3. Determine exactly who the key clients are that you should be working with.  You will need to identify them and find them.  That research can take time, so each night you should be researching the calls and the contacts to make the next day.
  4. Check out all of the listings in the local sales territory or focus area.  Understand the listings that are creating the most interest today.  Look for the listing opportunities within the most commonly attractive property types and locations.
  5. Some properties will be offered for sale or for lease by owners.  In most cases, those owners will not have the market penetration or the skills required to develop significant levels of enquiry.  On that basis you can merge these property owners into your prospecting system.  It is interesting to note that their motivation for self-marketing is usually to save on commission.  When they list with an agency or broker, they tend to load the price accordingly so that the net price or rent result is the same.  If you are going to work with these property owners, condition them to the prevailing market conditions, and be prepared to walk away from an overly inflated price or rental structure.
  6. Connect with the clients that you have acted for previously to understand their needs and requirements for property in the future.  Ask for referral business where possible.

To be effective in this market place as a top agent, you do need to track and measure your activities on a daily basis.  In this way you can see what is working for you and the things that are wasting your time.  Refine your skills and your actions accordingly.  Directed habits towards successful actions will take you to the top of the market with quality listings and good clients.