Saturday, June 16, 2012

Lead Generation Tips for Commercial Real Estate Agents

businessman driving car
Leads are there, you just need to look.

In commercial real estate today, there are many pressures on the clients that we work with, as well as us as industry professionals.  The pressure is relieved when we have a solid lead generation system personally working for us each and every day.  When you have more ‘leads’, you can have more opportunity to progress.

So what are leads?  They are:

  • Sellers and buyers of commercial property
  • Property investors seeking help or more property
  • Tenants seeking to rent, relocate, expand, or contract their operations
  • Businesses seeking to relocate
  • Developers needing land to build on
  • Solicitors and Accountants with clients that need property help

The only way you will consistently get to these groups is through a lead generation system.  You should have one for yourself that you implement every day.  When you do this, better listings and faster results are generally the outcome.

Here is a scary fact.  Most commercial salespeople do not have a consistent lead generation system!  They just do a few things when time permits and let the results happen; they have little order to the process and consequently get random results.  Isn’t that an amazing opportunity?

Do what does a ‘lead generation’ system look like and how can you create one?  I will give you an example here, but before I do I will say that this is going to need focus and effort!  Are you up to the challenge?  I hope you are.

A good lead generation system will be made up of the following:

  1. Research your market weekly for the listings that remain unsold or unleased.  They will become targets at the right time when the ‘exclusivity’ expires.
  2. Any properties that are being offered for sale or lease by owners are an immediate source of contact.  Rarely will owners of commercial property successfully generate their own transaction; they need a good agent to help them.
  3. Use the existing listings of other agents as triggers to talk to the adjacent property owners and tenants in the same street.  They make like to compete with the listing nearby.
  4. Go back into the sale records of about 3 years ago.  On average, these property owners will be the next to need help or want to acquire another property.  Commercial property cycles in most locations are about 5 years.  From 3 years onward, you should be building relationships with these people.
  5. Check out all the good properties locally and find out just who the owners are. Send them and letter of introduction (not an email), and follow it up with a call.  Get meetings where possible.
  6. Review all the businesses in the local area and talk to the business owners.  Some of them will need property help in the future in sale, renting, or buying.  Get to know the business owners personally.
  7. Methodically write letters to Accountants and Solicitors introducing yourself as a local commercial and retail property specialist.  Every letter will need a follow-up call, so only send a few at a time.  Ten letters a week is adequate for the purpose.

So this is a lead generation system.  You could add some of you own systems to this if you like.  The reality is that the system and the habit of regular action will produce results.  The rest is up to you.  Work hard and you will get there.