Proposals in commercial real estate come in many forms and usually involve complex issues. For this reason the proposal you present has to be well structured, simple in form, comprehensive in information, and strong on strategy. Here are some tips from our free Newsletter for Commercial Real Estate Agents.
Most proposals in commercial and retail real estate will involve one or more of the following:
· The leasing of vacant space to new tenants and perhaps even project leasing
· The marketing of vacant space to the local business community
· The proposal to list the property for sale or rent in the current market
· The marketing of the property for sale or lease as the case may be
· Letters of offer and heads of agreement that can apply to the sales or leasing process
· Renovation, redevelopment, or relocation matters relating to property performance
· Property management strategies to improve the property function for the tenancy mix and the landlord
All of these things require market knowledge and innovation when it comes to the preparation and submission of a proposal to the client. Here are some rules that should apply to the proposal process:
1. Any questions raised by the client should be confirmed and explored. This means that the agent needs to dig down into the real facts of the matter. One comment from the client should lead into a series of questions to get the complete facts from their perspective. This not only shows your interest in the matter, but it also allows you to explore the answer from the client’s perspective. In many cases the client will give you the solution that they require as they answer your questions.
2. Be aware of the differences between the concerns of the client and the facts of the situation. Any excuses provided by the client could very well hide the real facts that need to be dealt with. A top agent is a solution provider using the facts of the current property market and the marketing tools available. Where possible you should use 3rd party evidence and comment.
3. A top agent will show the client how to tap into the right buyers or tenants as the case may be. In saying that, the agent should emphasize the personal effort that they will apply to the marketing process. Far too many agents take shortcuts when it comes to marketing and promoting properties for sale or for lease. When the property market gets tough, it is the personal effort that will convert business more successfully. That means lifting the phone, and meeting more people that have been qualified as potential buyers or tenants.
4. Get the client to elaborate on any issues that appear confusing or of great concern to them. Do not respond too early; get the facts. As the client talks about their challenges or concerns, you can carefully assess the strategies that you could apply given your local market area knowledge.
5. When you provide any answers to the client ensure that they are suitably precise and factual. Make sure that they understand. Do not give long and lengthy answers that confuse the issue or take over the conversation. Your proposal and presentation is a two way interaction and most clients prefer to be heard rather than listen. It is interesting to note that far too many salespeople talk too much in their proposals and presentations. Top agents do not talk too much; they connect and converse.
6. When the client gives you a particular point of focus in conversation, use the keywords from their last sentence as triggers to open your conversation and comments. The keywords help you follow through on the particular issue. If the client has said something to you, then they expect a comment back. Failure to give the suitable response will show them that you really have not listened or do not want to.
7. Many clients will test you with regards to price, marketing, rent, strategy, and solutions. They are likely to throw you many difficult comments requiring specific answers. Top agents know how to be logically correct in the responses that they give. Logic and local property knowledge will always win over emotion and the games of negotiation that the client could be trying on you.
As a final comment, you should always ask the client for their agreement and commitment to the listing whilst you are with them. The best time to close is when you are in their presence.
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