In commercial real estate brokerage you must find motivated people if you are to have a chance of closing successfully on listings and creating more sales or leasing results. In essence, those motivated people that you need are the ones that have a reason to move on a property transaction; move closer to them through a series of contact and database strategies.
People around you are the key to the commercial real estate brokerage ‘equation’. Set yourself up with a list of categories of people that you can help with property in your local area or town or city. From that point onwards it is a matter of connecting with them. If you are located in a very busy city then you should segment the city into zones where you can focus your efforts; those zones should be of about 200 properties per group. In an ideal situation you can work an area with up to 2,500 properties, but that takes time to cover; get to know all the rents and prices in your zones by property type and location. Understand the ‘premiums’ that apply to leasing and buying good properties.
Here is a list of valuable property people that are likely to be targets for you:
- Local business owners – In most businesses today, property forms a part of the business function be it from a tenant or ownership perspective. It is the case that many businesses own the property in which they are located. Over time a property will become redundant or difficult for the business function, and that will be due to pressures on expansion, contraction, relocation, or a change in business direction. Staying in contact with those local business owners will allow you to help them at the right time. The business telephone book can help you find businesses to talk to.
- Property Investors – Commercial property remains attractive to property investors today. The yields in commercial, retail, or industrial property vary based on location, tenant mix, improvements and property type, but the fundamentals of investment are active in most locations through all economic cycles. When you find property investors you will be able to help them with local knowledge and information in an ongoing way. If you are regarded as the expert locally, then listing conversions will be a lot easier.
- Tenants – Tenants change property for all types of reasons. Sometimes they need another location, and at other times they may not find their landlord receptive to issues of business and lease occupation. In knowing a lot of tenants locally you have a big advantage in creating more leases. You can find the right tenants to talk to by progressively moving through your local area and streets. Door knock the businesses and leave your business card.
- Franchise groups – Many franchise models depend upon property use or occupation. Get to know the franchise head offices for your area. Understand the type of property that they are looking for and how they lease premises.
- Property trusts – A property trust is a special type of property investment alternative. A number of investors come together in a group to pool funds and purchase high quality and large properties. By pooling funds, the process of ownership in a large office building or property trust gets a lot easier for some investors. Understand what the property trusts are looking for as part of portfolio growth.
- Property developers – At different times of the year property developers will come and go from the market based on the availability of vacant land or the suitability of redundant properties for development. A successful property development is a fine balance between development costs, construction costs, property demand, and regional growth. Understanding your town or city from a property perspective will help you with finding development opportunities. It should be said that the fees and commissions coming from a property development will take time due to the staging of construction and any future sale or lease. If you are to be involved with a property developer and any new upcoming development, make sure that you have an exclusive listing for the project locked in for a long period of time.
So there are plenty of ways to find motivated people in the commercial property market today. Systemise your approach within these six segments mentioned. Understand what these groups are looking for when it comes to property occupancy or lease issues, and look for any property pressures they may be experiencing. Control the listing stock and build your property business around listings, not enquiries. Quality listings will always attract enquiries, so it is the listings that you need from a new business perspective.