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 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 sales or leasing, every little bit helps when it comes to marketing the property to the target market and local area. A correctly constructed marketing campaign should be 75% focused on the local area and 25% focused on the greater region and beyond. Here are some tips on marketing from our Newsletter for agents.
In just about all property marketing efforts, we find that most enquiries will come from local business owners and local property investors. This is the reason for the bias to local marketing. Sure you may have some properties that are an exception to the rule but almost always it is the local enquiry that really matters
So all of this being said, the advertising effort for any property and listing should be comprehensive and across a number of marketing tools and systems. The days of ‘generic’ advertising and promotion are well gone.
So let’s differentiate marketing between ‘open listings’ and ‘exclusive listings’.
- In the ‘open listing’ situation you have no control on the property or the client. For this reason advertising is largely a matter of convenience. You put a sign on the property and an advert on the internet. Any enquiries that you get you can process in an ordinary way. Importantly you should not waste much of your time on any ‘open listing’. If the client will not trust you with an ‘exclusive’ agency, then understand that your focus should be elsewhere on your better listings.
- ‘Exclusive listings’ are better for the client and for you. If the client is genuine in the sale or lease process, ‘exclusive’ listings allow you to get deeply into promoting the property to the local area. The communication between you and the client is a lot stronger and more relevant to getting results from the marketing campaign. Every ‘exclusive’ listing should include a reasonable amount of vendor paid marketing funds.
When you are to promote a property to the local area, a campaign should be structured on the target market, and personally driven by you as the agent or salesperson. When you get too many listings, the ‘personal’ side of property promotion gets a lot more difficult. The number of ‘exclusive’ listings that you can take on at any one time is about 15 listings. Beyond that number, you need a personal assistant to help you with the required systems and processes. Remember that the client wants to talk with you and not your assistant.
To put high value and relevance into your property promotion, take every listing personally into the area and the business community. Use every listing as a reason to talk to business owners and property investors. In this way you will get better results from all your marketing campaigns.
You can get more free tips like this in our Newsletter for Commercial Real Estate Agents.