In commercial real estate brokerage every agent should have a specific prospecting model that helps them build reasonable momentum when it comes to new clients and new listings. Each year far too many agents struggle with the issue and let new business slide backwards, only to find that it takes another 3 months of effort to get back on top of opportunities. Every agent should have a specific prospecting model that works for them.
Who are the People?
In different segments of the industry there are unique challenges and processes involved when it comes to finding the following groups of people:
- Property Investors – They potentially own multiple properties and have a strong requirement for property performance to bolster tenant mix and income. Specialized help in this property segment is always valuable.
- Business owners – They are on the lookout for properties where they can improve their business location, customer service, or manufacturing. They have a ‘bottom line’ focus. Can your local area awareness help business owners find the right next property to rent or buy?
- Tenants – Tenants can tell you so much when you make the regular contact. Whilst particular tenants may be needing relocation, others will understand the factors of change in the local area and they are therefore good sources of leads and local property information.
- Solicitors or Attorneys – They have clients that from time to time may be needing property help. You can get plenty of new business from a property attorney as long as they fully trust your skills and local property knowledge.
- Accountants – These financial people know about local clients that own property and may need investment help. Some of their clients may require specialized services such as vacancy leasing, tenant mix upgrades, and income or rental improvement. That is where you can help.
- Property developers – At the right time in the property market there will be the opportunities for redevelopment or new property projects. The factors of supply and demand will dictate the viability of a new property project. The cost of borrowing money will impact the viability of new construction and new development.
In each of these groups there will be plenty of opportunity to be had when it comes to property listings, clients, commissions, and referral business. Regular ongoing contact is the way in which the leads and the opportunities are generated.
What’s the Model?
Here is a highly effective prospecting model that you can implement in your real estate business at a personal and individual level:
- Concentrate your efforts in particular areas so that you can see the property changes that are occurring when it comes to sales, leasing, time on market, and marketing. That information will make it a lot easier for you to adjust your client focus and listing activities. It also helps you with benchmarks and indicators to be used as part of any property presentation with a client.
- Target certain buildings in your location. Choose the buildings that are likely to offer the best levels of enquiry, tenancy churn, pricing, and rental. They should do the buildings where businesses and investors like to get involved. You can take a photograph of the directory board or directory list in the foyers of each of those buildings.
- Target certain business types so that you understand the needs and focus points of property selection. Some agents and brokers have been particularly successful when it comes to servicing special segments of the industry such as doctors, dentists, pharmacies or chemists, supermarkets, and bulky goods. There are many segments to service in the commercial and retail property industry. A specific segment will have unique factors of occupancy, property turnover, and improvements.
- Identify the Property Investors active in your area today. The task can seem somewhat difficult and daunting in the earliest stages of an agent’s career. Property Investors commonly own assets and properties through trusts and company structures. To identify the people behind any property ownership structure will usually involve plenty of research and investigation. The process gets a lot easier when you take a quality listing to the market for sale. That is when the investors show their hand and seek further information. A few good quality listings taken to the market will always generate plenty of enquiries from property investors.
- Talk to plenty of new people every day so that you can relate to what is happening when it comes to prices, rentals, business activity, and investment. If you track the numbers and the responses that you have from this process, the information will be valuable to help you lock into new listing and do opportunity.
- Target people and create meetings. Understand who the players are in the property market for your town or city. Over time focus on the opportunity of creating a meeting with the right people. The value of personal contact can never be underestimated in our industry.
From these six simple factors, you can see how a specific and successful prospecting model can be established in commercial real estate brokerage. Make contact at a personal level with the people that really have an interest in property locally. Take specific small steps every day as part of your personal new business prospecting activity.