As a general rule in commercial real estate brokerage, every proposal that you put together should be benefit focused on the client. Show the client exactly how they will benefit from using your comprehensive services as a marketing specialist.
Use a Gantt chart to show the client the stages of listing, marketing, inspecting, and negotiating. This illustrative charting method is very effective when it comes to helping the client through a comprehensive and complex marketing process. It can also be a major point of difference in your proposal layout.
In today’s property market, the generic listing and marketing approach really doesn’t work. The competition in the marketplace is significant from other listings, and the experience and expertise of your competing agents and brokers will also place pressures on your listing conversions. Give the client some real reasons to choose you as the top agent of choice to solve their property pain.
It is worthwhile remembering that the client doesn’t want to be an experiment in marketing. They want their property to achieve the best levels of enquiry in the most effective and direct way. You hold the keys to the process and your proposal will need to clearly outline the strategies and recommendations.
Here are some tips to help you with constructing and submitting a proposal to sell or lease a commercial property today:
- Stand out as uniquely qualified to handle the property type in the town or city. You will need some testimonials and market evidence to help the client understand those situations and recommendations.
- Review the property for the strengths and weaknesses that will have an impact on the marketing campaign. The weaknesses may need to be addressed prior to the commencement of promotion. The strengths can be helpful when it comes to advertising layout and points of attraction.
- Determine the target market that will have a keen interest in the property type. Build your marketing campaign around the target market using specific points of difference and promotional processes that clearly tap into the target audience. Help the client understand those strategies and the reasons you are making the recommendations.
- Show the client how they will clearly benefit from utilizing your brokerage services and market coverage. Use your database as a point of difference when it comes to creating enquiry and spreading the message about the property. Create a shortlist of buyers or tenants as the case may be from the database; tell the client how you will be connecting into the short list of qualified parties as a priority as soon as the property is released to the market.
The focus of your proposal should be to attract the correct level of inquiry and generate inspections as soon as possible. When you get the inspections underway, you have something to work with and can then give the client feedback from those inspections.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
In commercial real estate, and most particularly with the property agents and brokers, sales team performance should be optimised throughout the year to adjust for the changes in property activity and regional demographics. In any period of 12 months, the market will change and on that basis similar changes will need to occur with prospecting, listing, negotiating, and marketing.
It is wise to have a process of tracking the key indicators in your property market. When you consider an average period of 12 months, most property markets have only 10 months of real activity in sales, leasing, and property management. Seasonal changes and market conditions will take up the other two months of downtime. Team performance needs to be suitably handled and adjusted within the agency to get the best results from 10 months of hard work.
Here are some ideas to help you improve your agency sales team performance:
- Top agents and brokers specialise in particular market segments. The segments may be geographical, or set by property type. Either way, specialisation is recommended. Specialisation process helps you cover the quality properties, key clients, and pockets of high level activity.
- Establish a prospecting model within the agency that can be tracked on an agent by agent basis. That will help you identify any weak links within the team. Some agents need help when it comes to prospecting, presenting, or negotiating. The tracking process will help you see those weaknesses and implement the necessary training and education programmes.
- Establish budgets that can apply to each agent or broker. The budget should be split into key indicators. Those indicators will normally be cold calling, meetings, door knocking, presentations, listings, exclusive listings, inspections, and closed transactions.
- Track the results that you get from every marketing campaign. The results that you get from an exclusive listing will be very relevant to your business activity. Open listings are not easily assessed in the same way given that the marketing of an open listing is random at best.
- At the end of each week, have the agency team provide a summary of activity including call numbers, meetings, listings, and inspections. You will soon see the differences between the members of the team and how effective they are when it comes to building their business.
When you track all of these numbers, you can see where the priorities lie when it comes to each agent and each broker in the team. Given that the property market changes throughout the year, adjustments will always be necessary at an individual level to ensure that quality listing stock is attracted to your business.
So what type of listings should you chase and attract? Quality listings create better levels of enquiry and will sell or lease faster. Over time that will improve your agency market share and commission opportunity.
Should you walk away from a low quality property listing? The answer is yes, if it will take you away from the other good properties in your area and sales or leasing territory. Commercial real estate marketing is a specific process needing effort and focus. Don’t waste your time.
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:
- 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?
- 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?
- 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?
- 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.
- 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.
- 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.
In commercial real estate agency each day, we are negotiating with many people across a number of challenging situations. Our ability to negotiate is a key part of growing market share and improving our commission opportunities. This then says that we should practice our dialogue and a negotiation skills at every opportunity.
A good negotiator in commercial real estate is one that understands the circumstances, the market, the documentary processes, and the intentions of the parties. It is sometimes a difficult equation to bring together. The clients that we serve expect their agents to be experienced and experts when it comes to the negotiation process.
So what are the negotiation stages and situations that we strike? Here are some of the main ones:
- The cold calling process is really a negotiation to establish a meeting with a new person. Your dialogue needs to be exemplary when it comes to communicating and connecting across the telephone. It is a specific skill that requires regular ongoing practice. In this way you can build connections with fresh prospects for your pipeline of new business.
- A cold call can also be something that applies to dropping into a local business to introduce yourself as a property specialist. The dialogue in that situation is totally different to the telephone process. This strategy can also reap significant rewards through practice.
- A sales pitch or presentation with a new prospective client is a negotiation to achieve a listing. That listing will involve a marketing package, marketing strategy, and listing process. It is interesting to note that the top agents within the market are very good at converting a new property to an exclusive listing. Those more ordinary agents in the market usually take the lesser alternative of an open listing. Unfortunately the ordinary agents struggle with market share as a result of this, and have little control over the deal that could possibly evolve. The message here is quite clear. If you want to convert more exclusive listings to grow your market share, then you need to refine your sales pitch and presentation process. A role playing strategy in your sales team meetings will help. Personal daily practice will also be necessary.
- When you find a suitable tenant for a buyer for a property, another negotiation stage will evolve between the parties. It is wise to remember the requirements and intentions of your client as the negotiation proceeds. Every stage of a negotiation should be carefully checked and documented. When you get to the final stages of offer and acceptance, the agreement document between the parties should be legally accurate, comprehensive, and correct. Some property transactions can be quite complex and for that reason you will need outside assistance to formulate the final document from the offer and acceptance situation.
Given these very common negotiation situations, you can see why dialogue improvement will help you strengthen your market share and commission opportunity in commercial real estate agency. Practice is required.
In commercial real estate agency, you really do need to understand what is going on in the marketplace and then make some solid choices at a personal level to improve your prospecting and deal activity. Everything comes down to a personal level and process in our industry. Success has little to do with the agency that you work for.
Outsiders and new agents to the industry are tempted to think that commissions and listings come easily. Nothing could be further from the truth. The quality and the growth of your business will come from personal focus and momentum. The choices that you make on a daily basis, and the actions that you take in prospecting and marketing will drive your business forward. The agents that struggle in the industry are those that have little or no system when it comes to business generation and market share.
Here are some strategies to help you initiate a business plan as a commercial real estate agent. Consistency in focus and the actions that you take every day are the keys to getting momentum and traction with your market share. Here are the ideas to help you:
- Understand the condition of the market today in deal activity, competing agents, and future growth. Look for the opportunities in sales leasing and property management activity. Understand where you fit when it comes to those three distinct disciplines.
- Choose the property type that you understand and can relate to. That may be in office, industrial, or retail property. The clients that we work for require specific expertise when it comes to resolving a problem with a quality property. The marketing and inspection process with any listing is not an experiment. It requires specific knowledge and expertise to tap into the right target market.
- Determine the cycles of the local property market when it comes to leasing and sales turnover. You can do that by reviewing the history transactions through the region. In most markets, a commercial or retail investment property will change hands or be upgraded at least once every seven years. It takes that long for the appropriate capital gain to occur or the client to reach the next stage of portfolio change and growth. Be sensitive to the cycles, and start prospecting the right people inside their property cycles.
- Start prospecting on a daily basis ensuring that you’re talking to new people as well as current contacts. The whole process should take you about 2 or 3 hours per day every working day. In a very short period of time you will find some new business opportunity. When that occurs, keep the prospecting process underway. That’s how top agents grow market share.
- When a competing agent puts a signboard on a property, it is an opportunity for you to talk to the property owners and business proprietors in the immediate and adjacent vicinity. This then says that the marketing processes of a competing agent give you leverage when it comes to building your market share. It is a fact that nearby property owners and business proprietors like to compete rather than cooperate with a nearby property sale or lease transaction.
- When you list a property, personally market the details of the property to the local region of property investors and business owners. This involves door knocking and telephone calls. From this process you will identify other opportunities to work on in the future. Pay particular attention to the immediate property location and the streets around the subject listing. Walk the streets and knock on the door’s to introduce yourself and the upcoming listing. Ask questions and talk to more people; it is amazing how much information you will extract from the market when you do this.
Building your market share in commercial real estate agency is a simple and yet ongoing process. You should have three or four solid strategies underway such as those above to help you connect with the right people and build the right relationships.
In commercial real estate agency, you should be adaptable to the challenges of the property market today, and the requirements of the client. This is really easy to do when you are a specialist in a property type and a location.
As a specialist in a property type and location you will or should understand the factors of pricing, rentals, tenancy mix, time on market, marketing, and negotiation. You are the specialist that can take over the clients property challenge and turn it into a successful property outcome. Specialization is the key to the process.
The clients that we work for require the right information and strategically relevant skills on the part of their agent. If you pitch and present your services correctly, your conversion to an exclusive listing will be quite easy.
Those agents today with an abundance of ‘open’ listings are those agents that have not sufficiently branded themselves as experts in the local area. They have no real point of difference when it comes to pitching their services. The clients they work with can see no real benefit in exclusive listing with a particular agent. If you want more exclusive listings, you will need to solve that perception. I go back to the point that specialization as a property agent is essential to the process. Top agents win more exclusive listings and that is the rule not the exception.
To be adaptable as a specialist real estate agent means that you have the necessary skills and the information required to handle the following situations comfortably:
- A client requires a vacancy in a property to be leased efficiently and effectively. The tenancy may have been vacant for some time. The client therefore requires innovative solutions that apply to the leasing process. They need that vacancy filled as soon as possible.
- A vacant property requires repositioning in the market so that it may be sold or leased. The pressures of the prevailing market conditions and the zoning requirements set the guidelines for the target market and the efforts that you need to undertake.
- At commercial or retail property has reached the end of its economic life given its current and present usage. On that basis the property needs to be subjected to a material change of use and redevelopment. As part of that process you will need to consider the approvals and strategies behind local planning and development.
- The client’s property may be under-performing from an income perspective. You should know how to review the tenancy mix, lease profiles, rental strategies, lease documentation, and outgoings recoveries. On that basis you will soon see the discrepancies when it comes to income recovery and growth. You can add to this assessment the rules and legalities that apply to rent review negotiations, lease option negotiations, tenancy relocations, and redevelopment alternatives.
- The client’s property today may be a future sales opportunity. In leading to that sales situation, they may have challenges that apply to the tenancy mix and the income profile. Over time you can help them with income modification and capital growth.
You can look at a property from a number of different perspectives. It may be vacant, unimproved, leased, or vacant. The value for the property can also be determined in a number of ways based on the identified potential and the prevailing market conditions. To assess the value of the property, you can cross reference two or three methods of valuation or appraisal to see what will work when it comes to any future listing price and marketing opportunity.
The top agents in a commercial real estate agency today are very adaptable. They understand how to move across the requirements and changes of the market. They know how to match the client and their property to the prevailing market conditions. You can do the same. Get to know your market and how it is changing and growing.
In commercial real estate agency, the sales pitch and presentation process is something that will hopefully occur quite frequently for you. On that basis you need to be ready to present your ideas and strategies at any time and on short notice. You never know when a client or prospect will want to talk to you about the market or the listing alternatives available when it comes to commercial real estate sales or leasing.
As a general rule, every agent should carry a complete and comprehensive marketing folder at all times with examples of property marketing solutions; those solutions should apply to leasing, sales, and property management.
Watch your competitors
In most property presentations situations today, you will be up against a number of other agents all seeking to attract the same listing into their agency. Those other agents will be using a variety of enticements and discounts.
It should be said that the provision of discounts to a client is not a good way to win a listing. Agents that cut corners on fees will generally cut corners on service. Given that the client wants a result with their property, cutting corners really doesn’t work. Adjust your pitch to suit that message.
You should win the listing based on your experience and relevance to the property type and the client. Your strategies and marketing solutions should be so comprehensive and relevant that the client can see no other alternative but to give you an exclusive listing. Build your presentation on that logic.
Discounts don’t work
The clients seeking a discount should be encouraged to understand the commerce of the deal and the marketing effort required by you as the agent. A few hundred dollars saved in commission is nothing compared to the better price that you can achieve for the client with a dedicated campaign that is personally conducted.
It is the quality of your presentation and pitching process that will help the client understand exactly what you are going to do for their property and its challenges. Your services need to be superior to that of the competitors locally. Be relevant and be different. Show the client why they need you.
Here are some tips to help you refine your presentation strategy when it comes to commercial and retail property.
- Check out all the competing properties in the local area so you can advise the client as to how the listing needs to be comprehensively marketed.
- The first four weeks of any marketing campaign are the most important. During this time you will need to connect with the defined target audience and create as many inspections as possible. Structure your marketing recommendations accordingly.
- Be aware of the current market conditions relative to the property type, and the seasonal sales or leasing pressures that can influence the starting of the marketing campaign. If you have a quality property to release to the market, it may pay you to consider the ideal time frames to do that.
- Use some sort of graphical display to illustrate to the client how you will move the listing forward. A Gantt graphing process is good for this application. You can show the client exactly how things are done and where those things will head over the coming weeks.
- As a general rule, every property should be exclusively listed. In that way you can create the correct amount of momentum, optimize the inspections, and negotiate directly with the client knowing all of the facts that are involved.
- Vendor paid marketing should be part of the exclusive listing process. Get quality photographs taken of the property to feature in all the marketing material created and used. Be aware of the opportunities that each marketing method provides. The Internet should feature in every campaign. In the first instance, it is the visual side of marketing that will attract more enquiry so use the best photographs wherever possible as part of your marketing effort.
When it comes to pitching for the commercial property listing, your strategies and ideas need to be well planned and optimized for the prevailing conditions and the property. Help the client see why your strategies are so important.
When you work in commercial real estate agency, you should start your day strongly and with focus. Get as much done as you can before other disruptions start to take over (and they will).
It is a fact that things in commercial real estate agency will happen daily that you do not expect. That being said, there are still key things that you need to do every day to improve your market share and client connections. If you overlook these things, you will soon have less commission coming in and you will also be missing on the quality listing stock.
So to start strong every day, you need a plan and a process. Action is everything in our industry and directed action can allow you to form habits. It is the habits that will take you forward as a professional in our industry.
Here are some ideas to help you with effectiveness and focus as a commercial real estate agent.
- It is easier to control the start of the day than it is to control the whole day. If you can control 1/3 your day, you can be quite successful and effective as an agent. Plan your activities so that your working day can and will be under your control from 7 am. to 11 am. Don’t let others change or modify your diary before 11 am.
- Prospect every morning from 8 am to 10 am. Get your outbound cold calls done then. That one single process will be critical to your market share. It is interesting to note that most top agents do this. Struggling agents overlook the process or avoid it.
- Talk to your clients from 10 am to 11 am. After 11 am the pressures of the day can take over so get to your important clients on key issues early. You can do the same thing at the end of the day and in the evening.
- Look after your database yourself. Only you have the information that should go into it, and only you are going to benefit from it being correctly used. If you go into your database every day you can shape the information and use it to your advantage. Ongoing contact and trust in our industry is a really big thing.
- As you move through the day and the week, track your numbers and ratios relating to calls out, meetings, presentations, listings, inspections, and deals closed. You should also track your exclusive listings as they will do more for your market share than open listings.
So you can see that the key thing here is control. When you are in control you can get more of the right things done. That is how you move up in the industry.
The commercial real estate market of today has some challenges to deal with. In most cases it is a slow market or there is an abundance of unsold properties, and or vacant premises for lease.
The property market doesn’t disappear; it just changes. That change factor is what we as commercial real estate agents can help with. We become the ‘agents of change’ and can provide the right solutions for property investors, business owners, and tenants. People need our help in many different ways.
If you are finding that things are a bit tough at the moment for you as a Real Estate Agent, have a look at the way in which you are doing things. Today you need a ‘toolbox’ of solutions to help the clients and prospects in today’s property market.
Creativity and relevance are the two facts to aim for here. Are you creative in marketing your properties for sale or lease? Are you relevant as a top agent in this type of property market? Generic agents struggle in this type of market because they do not have the ideas and strategies active to solve property problems for clients.
So let’s give you some ideas to put into your agent toolbox for commercial real estate sales and leasing.
- Have all the market facts and information at your fingertips for the particular property type and deal that needs to be done. You cannot change the client’s perception without the right information.
- Check out all the competing properties locally before you meet with your client. Be very familiar with prices and rents that are being asked. Time on market assessments will also be of value in helping the client see what is going on today.
- Have stories of success with other local properties and listings that you can share. Most clients will listen to the experiences of other properties and clients.
- Have alternatives for the client to choose from. When alternatives are available, the decision to be made is less difficult. Most clients will choose the ‘middle ground’ alternative.
- When you list any property, set the rents and prices for today’s market. The client’s perspective on price or rent should be challenged if it is too unrealistic. You do not want to waste your time or theirs in the listing process.
- Provide the solutions that the market needs including personal marketing systems that will allow you to take the listing to the right people in your database and the right local property owners.
Help the parties make decisions. In many respects our clients and prospects are just looking for the right agent that can solve their issues quickly and effectively.
In commercial real estate today, you must get the pricing and marketing strategy right when it comes to listing the property. Competing properties and economic pressures mean that the rates of enquiry for the average property are less. We as agents must do more with less when it comes to attracting enquiry and converting offers on a property. As part of that process, our clients should be realistic when it comes to listing and marketing their property.
As a general rule, highly priced listings with clients that are beyond the reality current market conditions should be declined. Let some other agent struggle with the listing.
So the pricing of a property is really important. The client will have their own impression of what the property is worth however it is likely to be inflated and not aligned to the market conditions. Here are some rules to help you with the pricing and marketing of your listings.
- All of your listings should be exclusive listings. Open listings are a waste of time as you cannot control the enquiry and stock. Only take on open listings if you want to have the property on your books; in other words you believe you can take some prospects to the property.
- The property type and the market will have some impact on how long you should take on an exclusive listing. Generally speaking, an exclusive listing should be for between 4 and 6 months. If you have not sold or leased it by then, it is likely to be a ‘dead listing’ that should be taken off the market for some time to ‘freshen up’.
- Check out the competing properties in your area before you quote prices on a property to be listed. Understand why those properties are on the market and why they have not sold or leased yet. Do not repeat the mistakes of those other listings.
- New property developments will have an impact on the supply and demand for property locally. The zoning of the property will also have a factor to consider on the listing price structure. Study these factors and determine how they impact your property and the client.
- Review the improvements in the property, together with the services and amenities provided. Are they of relevance to the market today, or do they require upgrade? Degraded or poorly maintained properties should be carefully considered prior to the start of any marketing campaign.
- The price of a property will be impacted by the method of sale, so chose the method of sale that buyers will react to in a positive way. The first 6 weeks of a marketing campaign are really important and you must optimise your enquiry chances.
Look at all of these things together with the factors of location for each listing. The location could have a major impact on your property marketing campaign and pricing structure. A successful property sale is the result of careful planning and the right decisions.
When looking at a commercial property for the first time, it is best to have some form of property analysis report or checklist that can help you cover the required issues relative to the property type and location. Here are some tips from our Agents Newsletter.
When you analyze all of the local property information correctly, it gives you confidence when it comes to the listing pitch and presentation with the client. The client wants specific information and needs to know that you have completely reviewed the property and the opportunities that the property presents to the market today. You know the market better than they do.
Know the commercial property trends
Today we find that the industry is under significant change and the trends are more difficult to pick or plan for. As agents we can understand the market today better than the client. Most clients in your local area desperately need the assistance of a quality commercial real estate agent to help them with their property liquidation or transition.
Every listing pitch or sales presentation with the client has to be of the highest quality and totally relevant to the subject property in every respect. Many competing agents will be chasing the same listing with their own version of a marketing approach and the listing strategy. For this very reason, you need to be at the ‘top of your game’ when it comes to local market information and the listing strategy.
Real Property Analysis
Your thoroughness in the process of property analysis will give the client some significant comfort in considering you as the best agent to list the property. Here are some more ideas to help you with your comprehensive property and marketing report.
- Describe the property and its improvements comprehensively. That will include the age, history, improvements, services and amenities. If any risks exist in the current local area, they will need to be factored into your recommendations and report.
- Tell the client about the current levels of enquiry that exist for that asset and property type today. Reference to your database will help the client understand what is really going on in the market today.
- You need to show the client that you totally understand the strengths and weaknesses that the property brings to the market today. The strengths can be fed into your marketing strategies and recommendations. They will also help you define the target market for the asset. The weaknesses on the other hand will need to be addressed when it comes to property promotion.
- Detail the locational factors that apply to the property and include the details of competing properties that are available in the same location. Check out all of the competing listings to understand their methods of marketing, and the reasons they may be still on the market today. If any errors exist in those other listings, you do not need to repeat them when it comes to your client’s asset.
- When considering a marketing strategy, price, or rental, the factors of income, expenditure, and property outgoings will have an impact on the levels of enquiry that you will get. Consider how these financial factors will be merged into your marketing efforts and what impact they may have.
- Review all the leases in the property to understand the differences between each lease and the impact that each lease has on the income stream for the asset. In many respects, the lease profile and tenancy mix within an asset will have greater impact on the potential enquiry and price. Do some comprehensive research on these factors, before you make your final marketing recommendations to the client.
- Vacancies in a property will be of some concern to most prospective property buyers and will have impact on the marketing program. Similarly some leases or tenants will need to be addressed prior to the commencement of promotion. Provide the client with a leasing solution for any outstanding vacancies.
- The tenancy mix should be reviewed for strengths and weaknesses. Factors of vacancy may need to be resolved prior to the commencement marketing. Outstanding matters of negotiation with current tenants may also need to be resolved prior to the commencement of promotion.
All of these factors lead to some solid recommendations of listing, marketing, inspecting, and negotiating. Let the client see that you really do know how to address the challenges of the current economy, and the challenges of the asset.
You can get more tips for Commercial Real Estate Agents in our Newsletter.
In commercial real estate today, auction activity can be quite specific for the particular property. For this very reason, you should have a specific checklist for taking the property to auction.
If you choose to use this method of sale, then it should be for the right property and it should be done for the right reasons. Even in tough property market conditions, the auction process can work quite successfully providing the agent focuses effort and time into the marketing campaign to attract the right buyers.
As a successful method of sale, it requires specific effort to get the message out into the group of target buyers. Typically the campaign will go for a period of 6 to 8 weeks. During this time, the first half of the campaign will be critical to the momentum that you require. The marketing message has to reach the target audience comprehensively with a consistent offering and full property details.
Here is a checklist that you can use or adopt when considering the auction method of sale.
- Get the correct appointment to act signed in accordance with your agency laws and legislation.
- Review similar properties in the same location that could have an impact on your marketing campaign.
- Check out the subject property detail relative to the information provided by the client.
- Look for any unusual factors of property ownership or obligation that will have some impact on the auction sale campaign.
- Inspect the property comprehensively so that you have a good list of features and improvements to merge into the draft advertising.
- Get professional photographs taken of the property to use in the marketing campaign.
- Prepare a list of selling points that should feature in all of your advertising material.
- Review the property for the potential inspection process. Understand how you will take people around the property when they have been qualified for that process.
- Prepare draft advertising for the client to review and approve.
- From the approved advertising material, prepare a promotional brochure for distribution via e-mail, direct mail, and personal inspection.
- Review the database in your office for prospects that may have an interest in the property and that may be suitable for a pre-release property inspection.
- If the property involves leases and tenancies, you will need to comprehensively check all of those documents for details of income, expenditure, and property performance.
- Prepare an investment report or information memorandum to be used in the campaign. The detail within this document should be reviewed for accuracy and relevance. Get the client to approve the document in its final form and before it is dispatched to any prospects.
- Prepare the documentation relative to the auction method of sale. In some cases, this documentation should be prepared by the vendor’s solicitor.
- Start promoting the property and hold the inspections with qualified prospects.
- Keep the property owner fully briefed on inspection results and market feedback.
- As you move towards sale, it is relevant to get the property owners thoughts on the reserve price for the property. On the auction day, the reserve price should be given to you in writing.
- You may or may not want to take offers prior to auction. That is a strategic decision subject to the prevailing market conditions and the instruction of the vendor.
- The auction should proceed as planned unless the client has achieved a sale prior to the auction date. Suitable deposits and contracts should be exchanged subject to the method of sale used.
You can add to this list based on the property type, your location, and the particular vendor. This method of sale is quite unique and involves a dedicated promotional process that can only be achieved through an exclusive listing.
You can get more tips in our Newsletter right here.
In commercial real estate agency today so many salespeople and leasing executives struggle with cold calling. They find it frustrating and quite soon they will find something else to do. Unfortunately cold call prospecting is then avoided for the future; they incorrectly move away from the one thing that can change their lead conversions forever.
So what stops you from making the calls? Here is a good list:
- Poor organisation
- Call reluctance
- No dialogue
- No momentum
- No database
- Lack of a prospect list
- Clients, etc
Make no mistake, cold calling is hard but it does produce volumes of results when you improve your call contact systems. It takes a mindset and a process that should be practiced.
All of this being said, there are some very simple things that you can do that will help you radically with the call contact process; one of the most effective is based on two simple words. The words are ‘stand up’.
When I say ‘stand up’ I am referring to you standing up when you make your contact and cold calls. So many top real estate agents do it; you probably do it now when you are making a mobile telephone call as you walk!
The fact of the matter is that your call quality and conversational ability is a lot higher when you stand up and talk on the telephone. There is something in moving and talking at the same time that goes well together. Whatever the secret is, you should try it and use it.
The benefits here are quite clear:
- More call confidence
- Better conversational ability
- Better tonality in the call voice
- ‘Right brain’ thinking as you talk
If you put all of these factors together you will find that those hard to make cold calls will be a lot easier for you. It really doesn’t really matter if you have clients and prospects in commercial or retail property sales, leasing, or property management, the fact of the issue is that you should be making lots of cold calls each week to people that you have not spoken to before. That’s how you build market share.
Start to work on you mindset and use the ‘stand up’ process to improve you call conversations and dialogue. Quite soon you will see some new confidence in the calling process; when that happens you will convert more meetings. A good result, don’t you think?