Automate Your Tenant Retention Plan – Tips for Commercial Real Estate Leasing Agents

In commercial and retail property today, a tenant retention plan should be part of the services provided by specialist commercial leasing agents and property managers.  The retention plan can be a value-add service for the clients that we work for.

It is no secret that the commercial and retail property investment market is under some strain.  That is all due to the pressures on the local business community.  This will change and improve over time.  Up until then, we need to approach the property market with system and focus to help the clients that we work for.  The tenant retention plan is one way of doing that.

That’s presume you have a good property to work with and the client to assist when it comes to tenant retention.  Here are some tips to help you build the program and the system of retention.

  1. Review the property comprehensively to determine which tenants are more important to the future of the property.  Those high priority tenants should receive special treatment when it comes to lease renegotiation and occupancy.  The other tenants in the property may be retained although some form of priority needs to be determined.
  2. Review all the leases relative to all tenancies.  Those leases will contain critical dates and terms and conditions that will have impact on the property function and tenancy mix.  Ensure that those dates and factors are allowed for when it comes to tenant negotiation and tenant planning.
  3. Keep in close contact with all tenants within the building to ensure that any needs of expansion or contraction are fully understood.  If you do not do this, it is quite likely that the tenant will look elsewhere to other agencies for assistance and relocation.  Before long you will have a vacancy to deal with which could have been avoided?
  4. To formulate a good retention plan, you need a strategy of rental and lease documentation.  The rents for the property can be either gross or net and should be determined based on the trends of the local property industry and the age of the property.  The rents should assist the landlord to recover property operational costs (also known as outgoings).  Any rent reviews applied to the leases will be based on the rental type and lease term.  Strategy is everything with rental choices, so make sure you have the right information to help you with the correct rental choices.
  5. Lease incentives will vary throughout the year from property to property and with relevance to any new property developments coming up.  Incentives will potentially attract your tenants to move elsewhere.  For this very reason, your client, the property owner, needs to be quite flexible when it comes to the setting of lease incentives for existing sitting tenants.  Failure to provide an incentive to a sitting tenant may very well see them move elsewhere.  The cost of a vacancy in a property is significant and most inconvenient at most times.
  6. As part of the retention plan, review the local area with due regard for competing properties.  They will have an impact on your tenancy mix and also market rental.  Some of those competing properties will be influencing your tenants to move elsewhere.  Be careful and respectful of these competing properties.

So these are some tips and ideas that can apply to the tenant retention program.  As a specialized leasing agent, you can establish some real strategy here to help the landlord with their property momentum and property focus.  When the property market is slow or tough, the value of a retention program is high.  You simply need to structure your fee for service into the appropriate appointment to act.

Beneficial Local Leads and Opportuntities for Commercial Property Agents

If you keep in contact with the local businesses in your area, you can uncover some significant property opportunity for your commercial real estate agency.  The process of contacting businesses is far easier than chasing down the property owners in your region.  A good prospecting model should involve both processes in balance.

It is the local businesses and the decision makers behind those businesses that can tell you what is going on in their region and their street; they can also tell you what they may be looking for in regard to future property activity.  It is easy to find local businesses, and it is easy to make contact with them.  The business telephone book is a valuable asset to grow your database.

Given that the local businesses are essentially the backbone of property occupancy, part of your database should be deliberately constructed for local business networking and the market intelligence that you gather.  Some of those businesses will be tenants, whilst other businesses will be owner occupiers.  Either way, there are property needs and challenges from time to time that they will need help with.

You can approach local business proprietors in two different ways.

  1. You can cold call them as part of your prospecting model on a daily basis.  This process is quite successful and worthwhile merging into your networking program.  Contacting 40 businesses a day is quite easy when you use the business telephone book.
  2. You can personally canvass the business streets and business locations as part of a ‘drop-in’ prospecting activity.  Getting your face in front of business proprietors in this way will help you gather significant market intelligence.

It should also be said that any significant property with multiple tenants will be a good opportunity for new business prospecting.  Many top commercial real estate agents will pick a large CBD building with multiple tenants and work through the list of tenants until they know what every tenant requires by way of occupancy and when their lease expires.  The direct approach works just about every time.

Many business owners and corporations do not have the experience or the expertise when it comes to commercial or retail property investigation and relocation.  For this very reason, they require local market assistance; you can be the source of this very valuable market intelligence.  Special property services may also be required such as tenant advocacy, or buyer’s agent.

Businesses and larger corporations will generally utilize these specialized services with the right agency.  They then become your client and will be paying your commission.  It is perhaps the reverse process to the normal sale or lease transaction, however it is quite productive and rewarding from an agency perspective.  You simply need to change your perspective on the transaction to help the business owner or corporation find the right property locally with the correct improvements.

The way to make this process work is to establish an initial base of contact with the right decision makers in every local business.  Over time, you can reconnect with these people and encourage a meeting at the right time.  Trust and information will help you open the door on future property requirements.  It may take three or four telephone calls every couple of months before you get to the right decision maker with a face to face meeting.

These business owners and business managers will appreciate local market intelligence and feedback when it comes to property rentals, property availability, and property prices.  As a strategy in connecting with these people, you can create a single page brochure that you can leave with them detailing the recent property activity and results.

Automating Your Commercial Real Estate Prospecting Model

In commercial real estate today and in your agency, it is necessary to have a good selection of quality listings.  Quality listings will always create solid enquiry in any market.  It is those quality listings that will help you with dominating your territory and converting more commissions.

It is an observed fact that low quality listings produce poor enquiry.  It is much harder to build your market share and listing opportunity as a commercial real estate agent from poor quality listings.  That being said, it is also the case that open listings produce poor quality commercial real estate activity.  As a priority, pursue exclusive listings for a lengthy period of time with all of your clients.  In this way, you will control market enquiry and convert more transactions personally.

So here are some rules that should apply to the prospecting process in helping you with your market share and future commercial real estate business opportunities.

  1. Get to know your territory intimately.  That will mean on a street by street basis and or property by property basis.  Your territory should not be too large or too complex.  You cannot be a commercial real estate specialist to everybody and every property type.
  2. Identify the existing properties on the market today and their time on market.  There will be reasons for properties not selling or not renting.  In each case you should review the competing properties and competing agencies to understand the errors in marketing and the poor performance of some of the salespeople involved.  Over time you can market yourself around weaker agencies and properties that have not been correctly promoted.
  3. Prospecting should be undertaken on a daily basis for at least 2 or 3 hours.  That should be the number one activity in your diary regardless of anything else.  When you set this rule and stick to it, you will achieve more market share and market intelligence.  Over time this will have a major impact on your commissions.  Cold calling should feature as a main component of your prospecting efforts.  This requires special diligence and commitment, but the rewards are many.
  4. Get to know the businesses throughout your local territory.  Those local business proprietors will understand and potentially help identify for you the changes to property in the local area.  Over time those businesses will also be looking for alternative premises to lease and or rent.  Those businesses can also be a great source of sale and leaseback activity.
  5. It is very easy to approach businesses as part of your prospecting model.  On that basis it should occur every day.  You will gain valuable market intelligence from the process.  It is somewhat harder to identify property owners and approach them.  That is mainly because they hide behind company structures and property trusts.  Create a list of prime properties in your region so that you can gradually work through the potential property ownership structures and identify the right people to talk to.  It will take time, however the results are significant.

While this list is not finite or complete, it will give you the foundation for the prospecting process to commence.  The commercial real estate industry is very much personally orientated and built on relationships.  Over time you must build relationships with key people, business proprietors, and property investors.

Commercial Property Agents – Sales Pitching with Success

A sales pitch in commercial real estate can be a challenging process especially when you are up against other agents competing for the same property when the market is saturated with listings or agents.  You do not know what the competitors are doing or saying and how they will pitch for the listing.

The best way to do a commercial real estate presentation is to start from a base of information about the clients need as you see it, and then ask questions to get their opinion on key issues.  In this way you have their attention and you can show them that you really do know what they need or what the market can do for them.

Here are some other ideas to feed into your sales pitch:

  • Questions create momentum in your presentation.  For this reason it pays to consider and prepare for the right questions that will have real relevance to the presentation.  You could include in those questions what the client has done with the property over recent time and what their intentions may be to move ahead with it now.  Ask them about their biggest challenge now in moving the property, and what they see as the best outcome.  From this information you can open up the discussion about the local market and current levels of enquiry.
  • Local market knowledge will give you confidence to move through challenges that may be presented to you by the client.  In most cases the client will not know much about the current market and the results that have been coming out of it.
  • Understand the customer and their current property problem.  Let them see that you relate to their concerns and show them how you will move matters forward.  Your pitch is not really about you and your skills; it is about them and their property pain.  Identify the pain and then provide the relief with real strategy.
  • Hone your critical skills and practice them regularly.  If you have any weaknesses, deal with them in role play and personal improvement.  Sometimes your greatest weakness as a salesperson is the only thing that is holding you back from a great leap forward in your business and market share.
  • Do not close or negotiate too early in the pitch process.  Far too many sales people do this.  It sends the wrong message to the client.  Desperation does not do well in a sales presentation today.
  • Use the right resources and have them available at your fingertips.  There is nothing worse that pitching for a listing and not having all of the right tools to take you forward.

Follow up all presentations professionally and efficiently.  Some clients will not make a choice on agent for a few days.  Make sure they see your professionalism in winning and losing a presentation.  Brand yourself as the best agent in a professional way.

Commercial Real Estate Agents – How to Prospect for Tenants

Finding tenants for your vacant buildings can be a real challenge.  The fact of the matter is that most new tenants will come from the businesses in your local area.  On that basis the direct personal approach to businesses tends to work more than anything else.

To be successful in commercial real estate leasing it is best to focus on the local business community and the movements that come from there.  The best marketing approach for any vacant tenancy or leasing project should be biased towards the local area.  This then says that the best marketing campaign can be structured around some of the following local strategies:

  • Determine the ideal target market that best suits the property
  • Get a signboard on to the property as soon as possible
  • Personally canvass it of the businesses in the immediate location
  • Circulate simple brochures into the business postal delivery service
  • Review your database for any previous leasing enquiries that may not have been satisfied
  • Identify the best buildings in the general precinct that may have tenant volatility.  Approach the tenants in the building to see if they are looking to move.

The leasing process will always be far more successful when you orientate it towards local businesses and local properties.  Your database should contain several hundred local businesses and decision makers for those businesses.

Approaching local businesses

When it comes to the occupancy of a property, local businesses tend to maintain a local focus so that they do not lose their customer base in any property changeover.  The fact of the matter is that they want comfortable occupancy at a reasonable rental.

In approaching the local businesses, the following questions and strategies will help you in gathering the right facts and building on the correct opportunities.

  1. Are they a tenant in occupancy or do they own the property?
  2. If they are the tenant, ask them some questions regarding the current lease.  Most particularly the expiry date of the lease will be of great value to you, and any renewal intentions that they may have.
  3. Are they under any pressure to expand or contract leased area at the moment?  Some businesses simply outgrow their property for one reason or another.
  4. What can the tenants tell you about their landlord?  The detail that you get here could be useful in the future when it comes to looking for commercial properties to sell.
  5. What does the local business owner think about the local area from a leasing and business angle?  Are they aware of any businesses that may be seeking change?

Simple questions like these can help you build a great database of future opportunity in leasing premises locally.  Take action today and get out into the local business community.  Make them part of your prospecting model.

Commercial Real Estate Agents – Incredibly Easy Prospecting Model and Timeline

In commercial real estate, you need a prospecting model if you want to be successful.  It is a very simple message and fact, but very complex task to initiate for some (although it does not need to be so).  The sooner you develop the process, the quicker you will get results in commissions and listings.

In any commercial real estate team, it is easy to see the difference between the agents that regularly prospect and those that don’t.  The difference will be in quality of listing stock, and conversions to closed transactions.

Establish Your Prospecting Process

The prospecting process is unique to you yourself as an individual and property specialist, and your territory with its property types and property investors.  To get your system going, it is necessary to establish some rules relative to the local area and the property types.  First and foremost, you should understand the following factors:

  • Set some boundaries relating to the primary area of focus in your region.  You cannot be an agent for everybody and cover every location.  The commercial property market is just so specialized that the knowledge required across different areas will be difficult to achieve and maintain.  It is better for you to become an area specialist and perhaps even a property specialist within the area.
  • With all of the available property types locally, determine the property types that will be of high demand into the future.  There is no point in you specialising in something that has little activity or reducing market share.
  • Get to know the history of property sales and leasing activity throughout your local region.  The historic trends in property sales, rental returns, business demographics, and population growth will influence the future of your commercial real estate market.  Ensure that your market has the expansion and churn factors that you require for property change over, sales, and rental.  The history of property activity is in fact a timeline.  The time line will show you where the opportunity will arise over coming months and years.

Within any local area, you will find groups of prospects that offer real commercial real estate opportunity on a regular basis.  Getting closer to those groups will help you with further listings and further inquiry.

Most particularly the top priority groups that will feed you with listings include the following:

  1. Franchise business groups seeking new property positions as part of their business model will always be on the lookout for good property locations.  Every franchise group will have unique requirements of property selection and occupancy.  For this very reason, approach them individually and get to know their selection process and terms of acquisition.  When it comes to leasing, they will usually have a standard form of lease to support their franchise business model.  They will also have particular requirements of demographics relative to the local area, the population, and exposure.
  2. Solicitors with clients that have property challenges or needs will need your help.  Whilst solicitors may know how to transact property, they usually need assistance when it comes to liquidating a property or acquiring a new one.  Local market knowledge will help them greatly with this process, and you can be the source of that experience when it comes to the local property market.
  3. Accountants with clients and property investors that require property solutions are a always out there looking for specialised property assistance and local market knowledge.  This is where you can be of high value to them as they work to resolve their client’s property problems.

Every existing property listing is an opportunity to talk to other property owners and business proprietors.  In this way you can expand your market intelligence and relevance as a property specialist.

Tenant Retention Plans – A Checklist for Commercial Real Estate Agents

In today’s property market, your current tenants in your tenancy mix are important to the future of the property.  When you create a tenant retention plan, you can optimise the income potential for the property.  That being said, a tenant retention program should be part of a professional property management and leasing service provided to landlords by agents.  Good commercial property agencies provide this specialised service.

It should be said that tenant retention is not just about lifting the rent for the landlord; in fact, that is probably the wrong strategy to adopt in your plan.  It is better to have a few priorities in balance so your retention plan forms a key part of the business plan for the property.

In particular, a good retention plan should include the following as goals:

  • Stabilise and minimise the vacancy factor
  • Create a group of prospective tenants for the vacancies in the property if and when they arise
  • Support the tenant mix so that tenants can occupy in comfort and build their businesses
  • Control occupancy costs for the landlord and the tenants within realistic benchmarks
  • Underpin the market rental for the property which in turn can support sustained property values for the landlord
  • Allow for tenant movements and property refurbishment strategies in parts of the property as planned at the beginning of the business or financial year
  • Help keep tenants in occupancy for the long term and in balance with the landlords investment requirements

Retail Importance

It should be said that a retention plan is highly important in retail property given that the stability of the tenant mix is required to keep customers coming to the property on a regular basis.  Any vacancy in a property is quickly seen and will detract from the image that a successful retail property needs to set.

So how can you establish a plan of this type?  Here are a few ideas to help you get started:

  1. Understand the supply and demand for tenancy space in the local area today.    As part of that process get to know what new property developments are coming up that will impact the available space ratio.
  2. Consider your property as it is today and determine what refurbishment and relocation issues should be merged into your retention plan.
  3. Split your tenancies into high value tenants and low value tenants when it comes to the future of the property.  Some of your tenants you cannot do without and everything must be done to encourage them to stay in a property.
  4. Anchor tenants will normally be secured on long leases.  The instability or change of an anchor tenant can impact all speciality tenants in a major way.  Find out when the anchor tenant lease expires and just what the anchor tenant thinks about the property today.  Do they intend to stay in the property?  When does their lease expire?  Can they do more to work in with the other tenants in the specialty areas?
  5. What levels of trade exist in the retail property and what tenant types are more successful than others?  This information will help you find new tenants that suit the customer needs in the property shopping centre or retail property.
  6. Is your property servicing a particular need?  In retail property this could mean ‘convenience’ or ‘destination’ shopping.  When you know what works in a property, you can do something more with it.
  7. Common area use will have impact on special property precincts such as ‘food courts’ and just how customers move through the property.  Take a survey of those factors and form and opinion as to how successful they are now.  Changes may be required to help in tenant sales and retention.
  8. Look at all the leases in the property and identify any leases that have market rent reviews, options, or expiry dates in the next 2 years.  Those tenants or leases will be a major focus of your retention plan.

You can add to this list based on your property and the overall location.  Importantly you should create a tenant retention plan that can help improve the performance of any property in any market.  That is why you were engaged by the client in the first place; correct?

Commercial Real Estate Agents – Taking Action in Building Market Share

In commercial real estate agency it is easy to get distracted on things that will do nothing for your business or market share.  In many respects, the easiest way forward is not the best way.  Consistent action is required every day to build your market share in commercial real estate sales and leasing.  In that way you can proceed and grow the listing and commission opportunity as an agent.

The top agents of the industry work to a system or a plan.  They know the things that are required to help them move ahead.  They do those things every day.  It is the system that is taking them forward.

You hear so many wise and experienced salespeople in the industry say that nothing happens until you take action; they would be right, it is however the right action that is required so you can build your market.  You will know your market and the changes that are underway; those changes will give you priorities in action and focus.

Look for the Changes

Every month and every year the property market changes with respect to property enquiry, time on market, and listing quality.  Staying ahead of those changes will help you match the right actions to the market that exists.  So what can you do?  Try some of these:

  1. Building your new business prospects just has to be number one on your diary of activity as a commercial real estate agent.  When you do this you will find that the market will offer lots of opportunity.
  2. Keep track of new property developments so you can watch the balance of supply and demand that may have impact on your property type or in your territory.
  3. Keeping your listings moving ahead at all times.  Exclusive listings are really important in this process.  Open listings are basically a waste of time unless you know that you have a buyer or tenant available now or soon.
  4. Connecting with Clients has to continue in all markets and at all times.  A good database will help you do just that.  How many prospects and clients should you have in your database that you regard as high value and active?  The answer is about 300.  It takes time to build those numbers but the process works.  You may have more contacts than that now, however the number of 300 relates to the key people that you believe that may have momentum and want some property help in the future.
  5. Work to a system of prospecting and cold calling on a regular daily basis.  Each day a call system will create new meetings if you call enough people. So how many people should you call each day?  The answer is about 40.  You will not get through to 40 people but you should get through to at least 15 people and of those you should be able to get at least one meeting with some opportunity.

Set clear targets for listings, prospecting, meetings, and contracts or leases.  Use a database to capture all of your contacts and meetings on a daily basis.

Fact Finding the Ideal Tenant in Commercial or Retail Property

When you have a vacancy or a pending vacancy in a commercial or retail property, you need to target the right tenant to fill that vacancy.  This then suggests that not all tenants will be suitable for a given property, and that observation is correct and real.

Commercial property agents should know exactly what the right tenant would be for a given vacant area in any property; and then they should know how to find that targeted tenant.  Top agents do this all the time.  These top agents are in touch with the movements in the local area and business community.

  • How much do you know about the local business community and its leasing pressures and leasing future?
  • Do you know what tenants are looking for today when it comes to new property movements and where they are moving to?
  • Are you in touch with lots of tenants as part of the prospecting model that you use?

So what does an ‘ideal tenant’ look like in your property location?  To a degree the question is answered with the following factors in mind:

  • The needs of the local business community
  • The prevailing tenant mix
  • Business sentiment and volatility
  • Supply and demand for new and older lettable space
  • The growth of the surrounding population
  • The business base and profile of the local area

In any investment property location and area, there will be ‘seasons’ and ‘peaks’ of property enquiry in any given year.  In most ‘years’ the leasing market is active for just 10 months, allowing for seasonal holidays, climatic conditions, and property availability.  For this very reason it pays to work well in advance with known property vacancies and leasing requirements.

An ‘ideal tenant’ will vary from property to property but many of the following factors could be on the list of ‘tenant requirements’ from a landlord perspective.

  1. A stable business that brings brand and identity to the property
  2. A tenant that integrates into the property existing tenant mix well
  3. Lease terms and conditions that strengthen the property rental income over the lease term
  4. A solid and secure market rental that underpins the value of the property for the landlord
  5. Tenancy design and layout that gives a good image to the property

Does such a tenant exist?  Yes is the basic answer, and to find them you should make contact with all of the businesses in the local area on a regular basis.  Over time you will find the good tenants, and those that want to move to other quality properties.  Most businesses stay within the same general location when they relocate, so they can take their customer base from property to property.

Checklists for Cold Calling in Commercial Real Estate Agency

When it comes to making cold calls in commercial real estate, you need some form of checklist to help you with progressing the conversation in a relevant way.  Most of the people that you call will have no interest or need when it comes to property sales or property leasing.

However some other people do have a need, and on that basis you should have a questioning process to help you move towards a meeting with these qualified people.  Systemise everything when it comes to a cold calling model in your commercial real estate business.

Here are some rules to help you establish a checklist in the cold calling prospect process.

  1. The best way to get a cold calling system up and running is to start from an initial base of telephone numbers in the business telephone book.  The local businesses will have some relationship to property either as a tenant or as a property owner.  On that basis they become targets for information and ongoing contact.
  2. In most cities and towns, you will have a significant group of local businesses that can be fed into this call contact system.  When you initially approach them it is simply a matter of understanding if they have a need or an interest when it comes to commercial property.  They will be requiring the services of an experienced property agent at some stage in the future.  Your job is to identify if that need is sooner or later.
  3. It is very hard to pitch your services across the telephone.  It is far more effective to strike a conversation, arrange a meeting and establish the personal contact.  Commercial real estate is quite complex when it comes to leasing sales and property management.  On that basis, your priority in making calls should always be to establish a meeting first and foremost.
  4. As part of the call contact process, ensure that you have a good database to use in capturing the information identified and found.  That database should categorise people into suspects, prospects, and clients.  It should also categorise people into business owners, property owners, tenants, and property developers.  Take control of your information with these categories.

The checklist process in making direct calls to businesses and property related people should have due regard to your local area.  There are certain things in your local area that will be important to property owners and business proprietors.  Here are some ideas that can be added to your contacting system and questioning process:

  • Are they a tenant in the location?
  • Do they own the property for the business?
  • Are they aware of other property changes locally?
  • Do they have needs of expansion or contraction for the business?
  • Is relocation something that would help them?
  • When do they consider property change?

All of this information will help you with the valuable market intelligence that you require.  Over time your database can become a significant point of difference and advantage in building your commercial real estate market share.

Jet Powered Cold Calling Tips for Commercial Real Estate Agents Today

When you work in commercial real estate, you really do need a top prospecting model to help you grab market share.  The faster that you do this the better it will be for your career.

The most successful top agents, still prospect every day to keep the pipeline of opportunity pointed in their direction.  If you are struggling with listings, now is the time to look at your prospecting system and refine it to something that is strong, and results driven.

I like to think of prospecting and cold calling as a ‘jet powered’ process.  It is a bit like preparing for an overseas trip on a large airliner.  You do all of the preparation work, you then turn up at the airport; you take your seat on the plane and then prepare for the ‘push in your back’.  The engines build to maximum thrust and then you power down the runway.

The analogy really works when you look at commercial real estate sales and leasing.  The preparation work has to be done; without that preparation you will not take off, it’s that simple.

Some agents are still sitting on the ‘runway’ when it comes time to turn on the ‘engines’, and some have returned to the terminal.  Perhaps they have thought that a more local destination may be more realistic in a taxi!  Perhaps they decide to walk home!

In this industry you get back that which you put in.  The results and the market share are out there to be grabbed by those salespeople that ‘push’ themselves.  Develop that ‘thrust’ when it comes to moving forward.

Experience says that prospecting will take you forward in a major way in commercial real estate.  Every salesperson in any location should have a prospecting model that works for them.  It will be a combination of a few different things that they do quite successfully every day.

Here are some tips to help your prospecting model:

  1. Devote 2 hours each day to prospecting.  In the first instance this can be done on the telephone as part of a systemised cold calling process.  The calls produce the meetings and that’s the way to make it all happen.
  2. Make your prospecting a daily event that you track in numbers of calls out, meetings, listings, and inspections.  Every number that you track will help you move ahead.
  3. Expect that some of the things that you do will be ‘dead ends’, and that is just fine.  Learn from the things that did not work for you and find those things that do work for you.  Importantly you should be taking forward steps every day.

If you need more listings or you want some more commissions, now is the time to look at your business and prospecting model.  If you are not getting your ‘fair share’, then the answer lies ‘within.  When you adjust your systems and processes you will find better outcomes are possible.

Commercial Agents – How to Find Commercial Real Estate Tenants to Lease Premises

Today it is somewhat of a challenge to find the tenants that you need to fill the vacant premises in all of your listings.  Rest assured that the tenants are out there, and it is just a matter of developing a contact system to find them.

An in balance in supply and demand for new and existing lettable space means that most cities and towns can be experiencing an abundance of vacant space.  If that sounds like your property market, then read on.

The Best Way?

One of the best ways to find new tenants to lease premises is by maintaining a contact system in your database where you keep going back to the businesses in your local area every 90 days to see if occupancy matters have changed for them.

  • Do they need to relocate?
  • Do they want more space locally?
  • Do they want to sublet?
  • Would they want to assign their lease?

All of these are interesting questions that require specialist assistance and that is where the local agent can be of great value.  The local leasing agent understands the property market in many different ways including rents, lease terms, incentives, and lease types (just to name a few).

The fact of the matter is that most business owners just want to get on with making money.  They have little or no idea of leasing trends of the local property market until they require new premises to relocate to.

Most leases go for a period of 3 or 5 years, however the 3 and 5 year term is really common.  This then says that any tenant that has been in a lease for a period of time could be coming up to a lease expiry or renewal.  Approaching tenants and asking the right questions is all that is required to become successful as a leasing agent in this and any other property market.

Build the property market around you so that you know what is needed by the tenants today and have all of the property information at your fingertips.

What does a ‘top agent’ look like?  They look ‘busy’.  Build your system of contact with your local businesses and the leasing market opportunities will open up for you.

Commercial Real Estate Prospecting – Tips for Commercial Agents

When it comes to commercial real estate agency as a career, the only thing that really matters in your business model is your prospect list.  The more comprehensive and relevant your personal prospect list, the better the opportunities you will have as a real estate agent.  Opportunities are many things to many salespeople however in commercial property sales and leasing, the list of opportunities are something like this:

  • More business owners seeking to relocate or expand premises
  • More tenants looking to leave their current premises
  • Buyers seeking to purchase new property in your area
  • More property owners wanting to invest
  • More investors seeking to change their property ownership or portfolio
  • More owner occupiers seeking to start business in a new location

Many agents ask me as to how many prospects they should have.  Whilst the answer is relevant to your market and property speciality, generally the answer is in excess of 300 prospects.  Ideally the number should be 600.   These people are prospects that you can relate to and will take your call.  They know you as a property expert and recognise that you are a local property expert.

Do you tick these boxes?  Do these prospect list criteria fit your current database and prospecting system?  If not, you have some work to do.

There are only two ways to build a prospect list fast.  That is by making cold calls every day and then by getting out into your territory to meet property owners and occupiers.  As simple as these issues seem, they take a lot of personal work and consistency.  Many salespeople do not do either of these things very well; that is simply because they get distracted or prefer to do other things.

So this then opens the door for the agents and salespeople that have the discipline to make the calls and meet the people.  Add to this a great database system and you have the permanent solution for building your real estate business.

In saying that you need a database, far too many salespeople spend a large amount of time on selecting the right database program or software.  The facts indicate that you do not need a complex database or system.  You need something simple that you can use easily each and every day.

Importantly your first database should be simple enough to transport and export data from.  When you get to the day where you want to move your database to a special program that you have just purchased, the ability to export data will be critical.  So many agents have been frustrated by this very fact.  When you start your database system, make sure that the program lets you export your data in some common format to other programs.  When in doubt seek expert help.