In the commercial property market today there will always be plenty of commission and listing opportunity to be had by agents and brokers in most towns and cities. Each category of property will have churn and activity to be converted into fresh new listings and transactions; the secret to getting results is in seeing the next opportunity. That is where the best commissions come from. Plans and strategies will be factors of choice for every agent and broker. Every agent should have a specific plan of client engagement that they implement every day.
Quality and Exclusivity
A good agent will look for the segmented opportunities and the changes coming up; they will then modify prospecting and new business actions accordingly. In saying that, a good agent will always focus on quality listings in top locations. Exclusivity is a critical part of the way we must grow market share and control it.
There is a simple formula to remember in commercial real estate brokerage today. The quality listings in your town or city will create better levels of enquiry; that is how you can build your database more effectively and directly providing you focus on exclusivity in the listing process.
Small versus Larger Properties
It should also be said that the smaller listings will generally be more time consuming and frustrating to bring to finality. Understand the commissions earned per transaction and track your results throughout the year. Choose your clients and your properties carefully. Focus your efforts in the segments that really offer the best opportunities.
Top agents like to be selective when it comes to working a property category, the location, and the property type. Leave the smaller listings and the lower quality properties to the less experienced agents to handle; the best commissions come from selective marketing and direct promotion. Your targets should be the best listings, the best clients, and the top locations.
The Preferred Skills
To convert the new business you will need a good degree of local property knowledge, excellent negotiation skills, and a listing presentation that is relevant and real for the current market conditions.
Here are some ideas to help you achieve better results in commercial real estate today:
- Property Seasons – Understand the seasonal changes in the property market. There will be times of the year where investors and local businesses like to consider change and opportunity. Focus most of your prospecting activities into those critical windows of time involving sales and leasing activity.
- Property Type and Facts – Drill down into a particular property type in a comprehensive way. Review the local property market to understand the factors of growth and change over the next 5 to 10 years. Select the property type with the clearly defined future. At that point you can set your targets to control market share, capture client interest, and service the local businesses. When you specialize in a particular property type it is far easier to relate to the changes locally in prices, rents, improvements, and incentives.
- Work Systems – Establish some clear working routines that apply to your new business activities. At least 1/3 your working day should be committed and devoted to new business generation. As simple as the concept seems, it can be very difficult for agents to stay on track as they get busier with transactions and client activity. When you start to neglect your prospecting activity, the new business levels fall away and commissions become harder to achieve.
The commercial property market is not overly complex but it does require specific focus at an individual agent level. Simplify your business and direct your efforts into your specific property types and locations. Prospect extensively and exclusively for at least 1/3 of every working day; soon you will see the opportunities that are available in both sales and leasing activity.
Improve your skills with the things that really matter such as prospecting, presenting, listing, inspecting, and negotiating. Over time your conversions will lift providing you practice the essential skills of commercial real estate brokerage.