How would you define the performance of a sales team in commercial real estate brokerage? Perhaps, we would all have some different criteria as part of the answer, however most of the measures that we identify could involve some reference to clients, commissions, listings, and conversions. That assessment would involve where things are now and where they are headed.
Increasing performance in commercial real estate brokerage is something to be tracked individually and across the real estate team, so you know what is working and what is requiring adjustment. I like to focus on the ‘front end’ of the real estate business when it comes to improving things within a team business model.
By definition, the ‘front end’ of the business to me involves the indicators that are business generating and commission converting; hence they are the ‘high performance’ issues that are important in most cases.
Try these ideas for starters:
- Signboards: Know the number of signboards that you have in the local area and then split that number into ‘open’ and ‘exclusive’ listings. ‘Exclusivity’ is the thing that really matters in our industry, especially if you work in sales or leasing. Controlling your listing stock is a direct reflection of an agent’s success in pitching for the listing and converting vendor paid marketing funds.
- Marketing money: Always watch the value of marketing money that you are converting from your clients as vendors and as part of the listing process. If a client is serious about selling or leasing their property, then they will be prepared to spend money on advertising. Show the client how the advertising process works and take them through exactly how you will be spending the money that they will be investing in the marketing campaign.
- Time on market: When you look at a single exclusive listing, assess the time on market taken to achieving a successful sale or lease. The time on market will be impacted by your ability to shape and refresh the listing during the campaign. Some clients and properties take a good degree of conditioning and positioning. The start of the listing and advertising process is the very beginning of how you should be getting things moving. Once you have ‘won’ the listing, the hard work really starts. Be different and be driven when it comes to getting the message out about all of your good quality ‘exclusive’ listings.
- Database: It is very hard to improve your brokerage position without a database at a personal level. When you look at your database growth you should see an increase over a consistent period of time. Each day in talking to new people you should be able to add some new people to your database. Once those people are in your database, then the ongoing contact process starts incorporating some relevant local property information and services.
- Commissions per transaction: When you focus on quality listings, you can convert, negotiate and close on a transaction faster. In the ‘real world’ bias your prospecting and listing activities to the better properties in your location. A small number of quality listings on an ‘exclusive’ basis can bring you far better results over time. A greater number of ordinary ‘open listings’ can waste a lot of your time and keep you relatively ‘poor’ as an agent.
From these things you can see how these 5 factors are concentrated in the ‘front end’ of your commercial real estate market and industry activities. Concentrate your efforts accordingly.
Special report on Territory Management for Commercial Real Estate Brokers and Agents