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 today, every service that you offer should have specific value related strategies. It doesn’t really matter whether you sell, lease, or manage commercial real estate, but it does matter that you understand the valuable outcomes that you provide to the clients that you serve.
Every person in your agency should understand the values that are provided by your agency and business. In this way every sales pitch and presentation can be improved and optimized. Consistency in your message is really important.
To win a listing in today’s property market, your services are to be of the highest value and of great relevance to the client. The generic approach in commercial real estate will give you poor results. There is no point in being like every other agent.
Why are you the best agent in the local area? It’s an interesting question. When you know the answer, it will be very easy for you to pitch and sell your services in sales, leasing, or property management. Top agents know how to do this and you should also understand the process.
When you look at the differences in service that can be provided, you can see specific values that are real and relevant to the clients that you act for today. Here are some cases in point.
Commercial Real Estate Sales
- The ability to tap into some comprehensive database that is real and up to date. That database will help you minimise time on market and create property inspections conveniently and effectively.
- The right methods of sale to attract the appropriate enquiry in today’s market. The method of sale should be relevant to the property type and the levels of current property enquiry. The ways in which you take a property to the market will send a message to the local property investors and business owners.
- The marketing systems that can help spread the message into the target audience for the particular property. Those marketing systems should be specific and not generic. They should reach the target audience effectively and comprehensively over a well-directed marketing campaign.
Commercial Real Estate Leasing
- A comprehensive list of all the business owners and business proprietors through the local area. That list could be updated continually to ensure that you know when those businesses need to expand, contract, or relocate into other premises.
- Tenant advocacy services that can help tenants to find the right properties in the right location. Tenant advocacy is quite a specialised service and it requires the services of a highly experienced leasing professional. They understand the lease strategies, rental types, and occupancy costs. They know how to put good leases together and can serve their tenants well. That being said, the tenant in such situation is the client.
Commercial Real Estate Property Management
- Commercial property management is quite a specific service and should not be undertaken in your agency unless you have the right people. A good property management service will include income control, expenditure management, risk management, property compliance, maintenance strategies, lease documentation, and tenancy mix management. Make sure that you have at least one highly experienced commercial property manager on your team that knows what to do and how to do it. They can then train other more junior people that come through the ranks.
- Retail property management is distinctly different than commercial property management and to a large degree is more intense. In retail property and with shopping centres, you will find that the intensity of management service is higher and therefore the fees are higher. You need the right people that have experience in managing shopping centres with large numbers of tenants. The fact of the matter is that a good retail property manager will help build your business due to the experience and relevance they apply to the properties that they manage.
So these are some points of difference that can be built on. Specialisation in the industry will always give you leverage. Make sure that your people provide the specialisation that your clients need and then send that message out into the market at every opportunity.