Commercial Real Estate Agent – Property Listing Analysis to Win the Deal

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.

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.

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.