Sunday, July 21, 2013

Talking Shop with Commercial Real Estate Brokers

Opportunities abound in commercial real estate brokerage.

In the commercial real estate market today there are plenty of challenges and opportunities.  It is just a matter of what you see and how you react.  Most top agents and brokers move between sales and leasing opportunities as required.  That being said, they usually focus on the quality properties in the market today.  We all have choices when it comes to taking on a listing.

Here are some tips and ideas that apply to the commercial real estate market today.  You can compare these to your activities in the local area and sales territory.

  1. It is an established fact that the top agents of the market have a comprehensive and up to date database.  Every day they are growing the database and consolidating the connections with key people.  Most top agents will have a database containing at least 1000 well qualified prospects.
  2. The exclusive listing process should be your priority if you want to dominate the market and improve your market share.  Exclusive listings give you the ability to work with the client in a productive way and also encourage inspections and opportunities.
  3. When you look at the pressures of the market today, certain skills and factors of knowledge are more important than others.  From a brokerage point of view, your prospecting and presentation skills should be of the highest order and skill.  To achieve that you will need to practice and develop your dialogues.  Weekly practice and role playing will help.
  4. Watch the trends in the market that apply to methods of marketing, prices, and rentals.  Some listings will stay on the market for a very long time due to the poor choices of property promotion and inspection strategies.  When you win an exclusive listing, make sure that both of these issues are well considered and planned.
  5. Given that the levels of enquiry for most properties will have lessened over the recent years, you need to ‘do more with less’ when it comes to converting an enquiry to an opportunity.  Some properties will have fewer than three or four qualified prospects in either a sales or leasing campaign.  Those prospects should be encouraged to make a move towards an offer as soon as possible.  This then says that the marketing package and or method of sale or lease should be carefully considered to encourage a transaction as early as possible.
  6. The attraction time for a new listing will be relatively short.  With most marketing campaigns, the first three or four weeks will be the make or break to achieve a reasonable level of enquiry.  Make sure that every marketing campaign for an exclusive listing has been structured for maximum exposure in that time.  You can reassess your campaign later and go to a ‘stage 2’ strategy if necessary.
  7. Choose the best method of sale or lease based on the property type and location.  Some methods will work better than others.  Understand the trends of the local market today and seize the opportunities from other marketing campaigns.  Any buyer or tenant that has been unsuccessful with one listing can be moved to another property listing of similar type in the same location.  That is where the database tracking process becomes very important.
  8. The agent that controls the listings will control the market.  Whilst it may sometimes seem sensible to work with buyers and tenants, understand that they will quite likely be talking to many other agents at the same time.  I go back to the point that the agent with the listing controls the deal and controls the client.  As a general rule 80% of your new business focus should be on generating quality new listings on an exclusive basis.

Opportunities are always available for the agents and brokers that track the trends of the market today.  When they can see the opportunities, they simply need to take the correct level of action to a planned and systemised process.  The top agents of the market do that all the time.

You can get more tips for commercial real estate brokers at our main website.