Commercial Real Estate Agency Performance Standards that Matter

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

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

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

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

Team meetings?

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

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

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

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

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

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

Conditioning Commercial Real Estate Clients

Have you ever come across a commercial real estate client that thinks their property is worth more than what the market will deliver?  I would say just about 90% of clients fall into that category when first taking their property to the market.

It takes a while for reality to ‘kick in’ when it comes to property marketing.  Unfortunately the first few weeks of any property marketing effort are the weeks of getting results and enquiry; if the property is priced too high during that time, the client (and you) can be wasting a lot of time and money.

The important thing is that you help them understand what is really going on out there and what they can do to work within it.  It should also be said that you should not take the listing onto your books if the client will not listen to reason and the price is well away from market.  You do not want to be known as the agent that lists and cannot sell or lease.  Results are important in this industry.

Here are some facts:

  1. Property prices do not go up forever.  They will sometimes slow, stagnate, decline, or reverse.  The property market is based on a cycle of change and churn.  Our opportunity is in serving clients and helping them with that change.  As agents we need to know how to handle ‘change’ and help our clients do the same.  Do not struggle with the changes in the industry; work with them.  Know that they are a fact of the market and then design some solutions to help your clients through those changes when it comes to selling or leasing property today.
  2. New properties coming on the market will command more interest than older properties.  For that very reason you must watch the other property developments that are coming up.  Prices and rents offered will change the ‘game plan’ when it comes to existing properties today.
  3. Property enquiry will change during the year between the factors of property type, value, rent, time on market, and improvements.  Every listing should be matched into the prevailing market conditions.
  4. Selling and leasing commercial and retail property can be quite seasonal.  For this reason you can pick the best marketing solutions for the time of year.  Marketing of commercial and retail property today is quite important; the tools that we have available are diverse and powerful.  Choose the right tools to capture and grow the property enquiry.  Drop the generic marketing campaigns.  Be specific in how you promote your listings and make every marketing effort count.

So, all of this says that we should make sure at the very start of our services that we correctly guide and assist the clients that we work with.  When you list at the right price, your chances of better enquiry and eventual sale are much higher.  The client wants help in moving their property.  Tell them how you can help them do that and give solid proof as to the prevailing market conditions.  Give them the confidence and the reasons to use you as the preferred agent to take the listing on.

Commercial Property Presentations and Sales Pitch Strategies

The commercial property presentation today for sales and leasing has to be quite specific to the challenges in the property market.  Every client that we present to should be under no misunderstanding when it comes to the prevailing market conditions.  It is your job to tell them exactly how the market reacts at the moment to properties similar to that owned by the client.

The property sales pitch or presentation therefore needs to be comprehensive and specific to the property type.  When you do this correctly, you will achieve a listing that is matched to the market and a client that is receptive to the required ongoing marketing and negotiations.

Here are some tips to help your property presentation process today.

  1. As a first stage of the client connection, it’s desirable to meet the client on site and go through the property together.  This then allows you to ask questions of the client relating to the property history, the usage, and their motivations for sale or lease today.
  2. Following that property inspection, ask the client for at least 24 hours of time to allow you to research the prevailing market conditions, and provide the best recommendations to resolve their property challenge.  Use that time to correctly structure the strategies and recommendations that should be put to the client.  Be quite specific and not generic when it comes to those factors and your final proposal or recommendation.
  3. At the start of the actual presentation, explain to the client the prevailing market conditions as you see them relating to the property and it’s location.  Provide evidence from competing properties on the market today as to time on market, pricing, and best methods of sale or lease as the case may be.
  4. Over the last two years, there should be some market evidence relating to the achieved prices and rentals for that property type.  Whilst each property result will depend on improvements and location, it is worthwhile graphing the property market trends when it comes to results, prices, and rental.  Make sure you have inspected each comparable property so you can relate the facts to the client from a personal level.
  5. Be prepared to tell a few stories relating to other clients and market situations.  It is surprising how stories will gain the attention of the client and help your presentation overall.
  6. As part of the presentation, use plenty of digital photographs on your laptop computer.  Those photographs can be rolling automatically as a slide presentation whilst you talk to the client about their property.  Most of those photographs should be of the clients property, the surrounding locations, and competing properties.  In this way the client will be connecting with their property and your conversation.  Avoid slides with any words.  Pictures will help grab the clients attention.

Top agents today take deliberate effort when it comes to the property presentation and connecting with the client.  Everything needs to be specific in content and accuracy.  Expect the other competing agents to do their very best to derail your property presentation.  You will not have a second chance to meet with the client, so every presentation needs to be the best.

Commission Tips for Commercial Real Estate Sales Today

When it comes to your career in commercial real estate, commission will always be important to you as you move through the year.  In any given sales year, you really only have 10 months in which to create the necessary listing bank and completed transactions.

January is usually a difficult month when it comes to property enquiry and completed transactions.  Most clients and prospects take holidays in this period.  That being said, some agents will come back to the industry early after the Christmas break so they can find the right people that are active and looking for commercial property in that quiet time.  The strategy does work if you decide to adopt it.  They say that ‘the early bird catches the worm’, and in commercial real estate that rule does apply.

Commission structures change throughout the industry based on property type, industry standards, and industry regulation.  When the property market becomes more challenging and slow, there is a tendency for some agents to discount their fees and commissions.  The fact of the matter is that discounting fees is a precursor to agency downturn.  You are the expert when it comes to property enquiry and property marketing.  You do not need to discount your fees.  You do need to sell your services comprehensively.

Here are some observations regards commissions and fees structures:

  1. In many locations you will find that the commission base for a commercial property sale is usually around 3% for properties that will sell up to a price of around five million dollars.
  2. Over a sale price of five million dollars, the commission structure tends to reduce.  The lowest commissions I have seen in the industry were around 1.25 per cent of the sale price.  That is based on a property selling for $500,000,000.  It is quite unlikely that you will ever find commissions going below 1.25 per cent nor should they.  The fact of the matter is that a large and significant commercial property for sale requires significant effort when it comes to marketing.  The best people and the best strategies are required to achieve a great result for the client.  A totally committed agency team appointed to a significant listing will produce far better results for the client than any reduced commission benefit.
  3. All of this being said, if you are still going to reduce your commission for some reason, ensure that you get a commitment from the client for an exclusive listing to your agency for a long period of time.  That will usually be for a period of at least six months.   As part of that process, also get a commitment from the client to vendor paid marketing.  That vendor paid marketing should be paid to you upfront prior to the campaign commencing.

If the client expects you to reduce your commission, then you should expect the client to commit to your agency in a well-structured marketing campaign.  Show the client that you have the right strategies and people to promote the property comprehensively into the target market.  Tell the client what will be occurring over the marketing period.  Give them an established process that they can fully appreciate as part of accepting your listing appointment.  Use a Gantt chart to display your actions and intentions.

The marketing of commercial and retail property today is not an experiment.  It is a very specialised process requiring top salespeople and experienced agencies.  Develop your skills and sell them into your client base.  Show the client that you have the database and the connections to spread the property marketing message into the industry.  They must be able to see that your agency can get the best price in the shortest possible time.

Commercial Real Estate Agents – Property Sales and Leasing Strategies that Matter

The services we provide as the local commercial or retail real estate agency are quite specific and special.  The local property market will change throughout the year, as will the supply and demand for premises.  On that basis, we are the experts to help the clients that we serve.

Sales and leasing strategies for commercial and retail property will change throughout the year.  Each and every prospect should be entered into a database so that we can build on all future opportunity when the right property comes along.  Your diligence here will help your commission conversions and future listing opportunity.

Local property market information will come in many forms including prices, rentals, future developments, and the supply and demand for new space to occupy.  The clients that we serve cannot hope to cover those issues themselves.  That is where we step in as the experts and property strategists.

Top agents know how to package the negotiation for the best outcomes and results for the client.  These agents know what the market is doing, and how to package the right transaction for the clients that they serve.

Here are some tips to help you design your services for your local commercial and retail property clients.

  1. Local market information will vary throughout the year; you will see changing results in both sales and leasing activity.  This local market activity will be setting the necessary benchmarks and the market rentals or prices as the case may be.
  2. Local business sentiment, together with changes in the business community will have impact when it comes to property occupancy, sales, leasing, and rental returns.  It is our job to accumulate the necessary market knowledge and strategy to help the clients that we serve.  Optimising property occupancy and rental returns will help the eventual sales equation and resultant price.
  3. Rental strategy is quite specific to the location, the property type, and the intentions of the landlord.  In most cases, the rental should be set with the landlord prior to commencing any marketing effort relating to the particular property.  Standards and differences will apply when it comes to gross rental, net rental, incentives, rent reviews, and lease options.  We are the experts to help with these factors.
  4. Monitor the lease terms and conditions that apply to existing properties in the local area.  Business sentiment will have impact on existing negotiations and marketing strategies that you apply to each and every listing.  The supply and demand for local property will have immediate impact on the starting rental for any leases.  The same for pressures apply when it comes to the sale price.  On this basis, you need to know the differences between asking prices or rents, verses the facts and outcomes in finalised and completed transactions.
  5. Outgoings and operating costs will need to be recovered when it comes to lease occupancy.  The decisions you make here will have impact on the landlord and the rental structure of the lease document.  Local market standards, and the particular elements of the property may influence you when it comes to gross or net rental.  Importantly, the operating costs for the property should be recovered as part of the lease structure, so make the right decisions when it comes to rental type and outgoings recovery.
  6. Tenant mix strategy will shift and change throughout the year.  Tenancy mix decisions become important when you are working with a property containing multiple occupants in close proximity.  The duration of leases, and the proximity of those leases to other tenants need to be considered as part of each lease negotiation.
  7. The permitted use for each lease and tenant occupancy should be well considered and controlled.  Is quite important to ensure that the permitted use described in each lease that you negotiate is very specific and tight.  Too much latitude here  will allow the tenant to change the focus of the business and the offering to their customers.  This also has impact on any future lease assignment or subletting situation.  The permitted use will also have relevance to the tenancy mix strategy and any tenant retention plans that you implement.
  8. Vacancy and lease management should occur throughout the year.  Staying well ahead of any lease events and critical dates is quite important.  Prepare the landlord for any negotiations well in advance.  Have due regard for the local market conditions and the benchmarks established by other similar properties nearby.

It is easy to see why the services we provide as commercial real estate agents are regarded as specialised and unique.  That is why we charge a significant fee for service.  The clients that we serve can benefit significantly from the factors of our negotiation and finalised transactions.

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 – 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.

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.