Tuesday, July 16, 2013

Commercial Real Estate Prospecting is a Work of Art

city skyline of buildings
Great city!  Great prospecting opportunity in commercial real estate brokerage.

In commercial real estate brokerage, prospecting is almost a work of art.  It requires refinement, practice, and dedication.  The more committed you are to the process, the greater the results that are achieved.  Over time that can lead to better listings and commissions.  

Here below are some tips from our Newsletter.

It should be said that many commercial brokers and agents simply struggle with the whole prospecting concept.  They do some things but not enough of them.  They change tactic or drop off the momentum (the latter is more common).

So let’s fix this.  To get real traction in the business building activity it is necessary to work on some key factors.  Here they are:

  1. Make it simple.  It is better to do one or two things very well, than it is to do 5 things poorly.  Choose the prospecting activities that you can relate to and get started.
  2. Once you have chosen the key tasks to implement, there will be a degree of refinement and practice.  Every day you should seek to improve your actions and conversions.
  3. Split up the process into steps that you can track.  If you are making contact calls then track the numbers.  If you are sending letters then tally the letters out on a weekly basis.  Consistently try to keep your numbers above a set number.  Perhaps that is 40 calls per day or 5 letters per day.  Either way your benchmark should be set.  You are improving against yourself on a daily basis.
  4. Track your numbers that flow from the actions taken.  How many meetings, presentations, listings, and deals will you create from the prospecting model?  Track the numbers weekly.  Watch for improvements as they will encourage you.
  5. Build long term relationships and establish trust with the people you connect with.  Get a good database to help you with that.  Capture your daily actions in a call register and a database.  Make it personal and take ownership of what you do.
  6. What should you focus on as a market segment?  Will it be Sellers, Buyers, Tenants, or Landlords?  They all have differences so you should decide exactly who are to be the active groups in the market to focus on.
  7. Watch the trends and ‘seasons’ of the market.  Things will change and so should your business model.
  8. Take off the pressure in any prospecting connection and create conversations.  The object here is to get a meeting with a person or a business that has a need or an interest in the property market.   That need can be current or in the future.
  9. Increase your value to the people that you speak to.  What can you say or do today that will help your clients and prospects?  Understand what your competitors may be offering and go that bit further.

So it is easy to see that all of this is quite a specific process.  It is a choice and a commitment at an individual level.  Prospecting in commercial real estate brokerage is clearly a ‘work of art’.  You are ‘the artist’ to the process.

Join our on-line community of brokers and agents here for more tips and ideas.