Sunday, March 23, 2014

Podcast 165 - Commercial Real Estate Agent Radio

Here are 3 topics for today - 1. Create Internet Listing Engagement in Marketing Properties, 2. How to be Smarter in Prospecting and Cold Calling, 3. How to Make More Sales in Commercial Real Estate. These are commercial real estate training programs by John Highman

MP3 File

Saturday, March 22, 2014

Smarter Prospecting and Cold Calling in Commercial Real Estate Brokerage

telephone conference phone
Cold call prospecting is a critical skill in commercial real estate brokerage.
There are many ways to prospect and cold call for new business opportunity in commercial real estate today.  Importantly every agent and broker should have a system that they work to generating new business leads and opportunities.

Most of the new business created today by agents will come from personal effort and directed prospecting activities.  The agency that you work for, or the broker that employs you has very little to do with the process of new business generation.

Here are some rules to help the new business prospecting process and particularly so in sales and leasing activity.  Perhaps you can add to the list:

  1. Divide your territory up into precincts or zones.  That will then help you focus into particular streets and with certain property types.  In a larger sales territory you simply cannot cover the entire area all at once.  There are just too many issues and market trends to cover.  Split your territory up into groups of 100 properties at a time.  You then meticulously work through the property ownership records and the business owners in occupation.  Through that process you will identify fresh leads and opportunities for now or into the future.
  2. Devote 3 hours to the prospecting process every day; it is a  discipline that takes time to establish but the rewards are many.  That new business prospecting is best done first thing in the morning or in the afternoon.  You get better results from cold calling and prospecting when you keep up the momentum for a solid period of time.  Habits are are critical part of the process.  The minimum time frame for making new contacts should be 2 hours, and the acceptable time frame to target for should be 3 hours per day.
  3. Ideally you should be creating 2 new meetings each day and in a face to face situation with people that may need your services now or in the future.  Connect with the right people and build productive relationships over time.  Provide relevant information of interest and of value to genuine Property Investors and business owners.
  4. The top agents of the industry work consistently to a pattern of activities every working day.  You also need to devise your system to help you with that process.  Disciplined and directed effort are very important skills for a commercial real estate broker.  Understand your ratios.  How many people do you have to call to create 2 meetings per day?  How many meetings per week do you require for a listing conversion?  How many exclusive listings do you convert to completed sales or leases (the target should be at least 75%).
  5. Qualify the people that you talk to, given that some may be genuine, and others may be less motivated or honest when it comes to property inspections and requirements.  Before you arrange an inspection or a meeting, fully qualify the people that you are talking to and look for the signals or barriers that could waste your time in that inspection. 
  6. When you talk to a prospect or potential client, understand exactly what they are looking for, when they need it, and who they have spoken to previously.  They may be working all the local agents and have inspected many open listings; the only point of difference you can bring them is in exclusive listings that other agents can't quote or access.
  7. Track and measure the results you are getting from your prospecting activities on a daily and weekly basis.  Some of your activities will be more effective than others.  Repeat the things that work for you and build a database of qualified prospects in doing so.
An effective prospecting system today involves a number of strategies including cold calling, door knocking, direct mail, e-mail marketing, web sites, blogging, and social media.

When you list selectively and exclusively, you will control the inspections and the inquiries.  When you focus on quality listings, you will get more inquiries from genuine buyers or tenants as the case may be.  Quality listings can create better leads and opportunities providing you comprehensively market the properties in a well directed vendor paid marketing campaign.

So the message here is quite clear.  The prospecting and networking process in commercial real estate today is quite specific and direct.  As an agent or a broker you need to go out into the market and find the people to talk to.  It's a daily process that will have a significant impact on your listing conversions and commission opportunities.  The only thing you need to get started is discipline.

Saturday, March 8, 2014

Commercial Real Estate Agent Checklist for Competitors

commercial real estate agent completing checklist
Create a checklist to build your commercial real estate business

In the commercial property market today as an agent you need to understand the impact and activities of your brokerage competitors within your property type and your location.  Some of those competitors will be better than others when it comes to market share and marketing ability.

When you completely understand the competition around you, you can take steps to improve your relevancy as a top agent.  You can then adjust your business plan and marketing activities to attract better listings and retain clients more effectively.

Many agents and brokers will win more property listings due to their prevailing market share and market dominance.  The qualities of listings that they take to market will also have a compounding effect for new business generation.  When you have a quality listing that you take to the market, it is noticed by local property investors, buyers, tenants, and property developers.  It is a fact that top agents today get noticed.  Listing quality is a precursor to market dominance.

So here is a checklist to help you identify the competitors in your local area and particularly with commercial real estate:

1.       On a weekly basis make it a priority to travel through the streets of your sales and leasing territory understanding and tracking the numbers of listings and the time on market in each case.  Some listings will stay on the market for long periods of time.  There will be reasons for that delay; those reasons are worth investigating.  Judge and assess the listing facts associated with extended time on market.  There is no point in repeating the errors of other agents in your marketing campaigns and with your client’s properties.
2.       Assess the number of signboards across the region and with each brokerage.  Compare your signboards in quality and size to those of your competitors.  Identify the signage dominance that each brokerage may have within a segment of the industry.  Split the numbers of signboards into open listings and exclusive listings.  Top agents will usually have far more exclusive listings, and they will convert those listings to successful transactions in a shorter period of time.  Many top agents will not take on or market open listings; that logic is acceptable and worth remembering.
3.       On a weekly basis review the numbers of listings in your territory that are advertised across the Internet industry portals.  Differentiate between openly listed properties and exclusive listings.  Also differentiate with those exclusive listings that are premium placements on the industry portals.  In tracking these numbers you can show your clients the relevance of exclusivity and premium placement.
4.       Understand the different methods of sale and lease that are being used by other top industry brokerages and agents in your town or city.  Look at the success rates in each case.  Identify the reasons for those successes and any potential replication that can occur with your methods of sale and lease.
5.       Assess the other listings held by your competitors on a quality basis.  Your soon see the local agents that are attracting the better listings.  Understand the reasons for that attraction to see if you can improve your prospecting efforts with higher quality listings.

So the facts here are very clear; information regards local property activity will help you adjust your prospecting efforts and marketing campaigns.  Information regards the local property market and the activities of other agents will help you greatly to move ahead faster with better listing stock.