The commercial real estate industry in any location will have a variety of property types and property specialities. On that basis you need people in your brokerage team that are prepared to focus into a property type and specialisation.
Many of the property types we work on are unique and the factors of selling, leasing or managing are specific to that segment of property.
The Best People and the Right Property Market
Here are some essential ideas to help you get started in establishing any new brokerage with the right people.
So the best way to get started is to look at your city, the industry and the property activities locally over recent years. Here are some ideas to help you gather the relevant and recent facts from your local property market and see where the best market segments can be for future listing and commission opportunity:
- History of activity – Identify the strengths and weaknesses within location over recent time (the last 5 years) and see if you can predict the upcoming changes and market activity within office, industrial, and retail property. Some segments should stand out as highly active and in demand.
- Population and city growth – Get population figures from the local town or municipal council to judge where the city is changing and why that is so. A city in a growth phase will usually have a healthy property market. What parts of your city are growing and why is that so?
- Roads and transport infrastructure – When the roads and transport corridors are under change they can have a real impact on local businesses. See where change could occur in road networks and transport routes. How will those changes impact local business?
- Industry and business types – Look at the local business community and identify the successful segments of industry and commerce. Within your town or city there are likely to be particular industry segments or resource based industry groups that are driving the economy for the area and the location. Those industry segments are likely to be good targets for property activity. Wherever possible, connect with some local business people to understand their perception of business growth and viability.
- Local property construction and new developments – The levels of construction activity currently underway and new approvals being considered are good indicators of business and property sentiment. Visit the planning approvals office for your location to identify where any new planning approvals and construction activity will soon be under way. It is worthwhile finding the property owners in each case to see if you can help them with any sale or lease requirements.
- Other Agents and Brokers – Consider the brokerage competition for the location. There will be other brokerage offices already established and servicing certain segments of the property market. Who are they and where are they based? What will be their claim to market share and why do they hold that segment of the property market? Within each office identify the top agents and or their speciality. Look for the gaps within the industry currently where further brokerage activity can occur. What specialities will you need to bring to the market to fill those gaps? If you are going to compete with others then you will need the skills, knowledge, stamina, drive, and resources. Are they available or will you need to pull those attributes towards you or get them in?
- Current properties on the Market – Review current listing activity and time on market across the segments of industrial, office, and retail property. How long does it take into sell or lease a property in today’s terms? Any lengthy time on market will be an indicator for overpriced property, oversupply, or a shift in the business sentiment. When you understand the pressures of the industry currently, you can adjust your focus between sellers, buyers, landlords, and tenants. Which segment will you focus on first?
So let’s say you are considering the listing and commission opportunities within your property market; potentially the establishment of a new brokerage team. Choose the segments of the industry that work for you and your brokerage team. Attract the right people for the specialized tasks involved in property portfolio work.
There are significant skill differences to be addressed in any real estate team between sales, leasing, and property management. It should also be said that there are also major differences between the retail property type and everything else.
Choose your people carefully based on the property segments to be serviced and the complexities of the local property market. Understand the levels of activity within the market that appear to have been active and successful over time (and that can offer your business a future) and shape your team accordingly.