Tuesday, July 9, 2013

A New Experience in Prospecting Commercial Real Estate

man using loudhailer
Create your prospecting system in commercial real estate.

In commercial real estate brokerage, the prospecting process is part of the job.  That being said, when you systemize the prospecting process you get greater traction and results; of course that would be a good thing at a personal level for many brokers and agents.

So exactly who are you looking for as a client or prospect today?  Clarity with that will help your networking and prospecting system.  Know exactly the type of person you are l looking to connect with and understand why they will need you.

It is therefore wise to establish a contact model for each of the following prospect types:

  • Sellers of commercial property
  • Buyers of investment property
  • Buyers looking for  owner occupation
  • Tenants looking for relocation
  • Landlords requiring property management services

When you look at each of the categories you can easily see why you require a separate contact system.  Each of the categories will need a strategy or approach process.

If I take one of these categories as an example, you can see what I mean about establishing your contact model.  Let’s take the ‘sellers of commercial property’ as a point of reference.  If I wanted to connect with many sellers this is what I would do:

  1. Define a territory of focus so I could work the better locations and streets where the good properties are located.
  2. I would get copy of the streets and property ownership records for the region.
  3. Research the sale records for the last 4 years.  Most of the sales occur after year 4 to 5 so you have a target list of upcoming sellers to focus on.
  4. Drive through the streets to get to know locations and current listings.
  5. I can research the property owners singularly based on property location.  Note that this takes time so allocate an objective of 2 property owners per day as a sourcing target.
  6. I would start making the calls and door knocking the businesses in the target zone to get some up to date market intelligence.
  7. I can also then concentrate on the top properties singularly and the businesses that may be occupying them.

It is remarkable just how much information you will pick up in commercial real estate when you get highly organised in business and property owner contact.  Asking questions like these will help you:

  • What are they doing now with their property?
  • How long have they owned the property?
  • Have they noticed other activity in the area?
  • If they were considering a move or sale, what would be the ideal outcome?

Simple questions like these will help you reach into your property market and find the best clients to serve.