In commercial real estate brokerage today, there are plenty of challenges when it comes to market share, commissions, and clients. To help us with the necessary focus as brokers, at a personal level it pays to develop a focus and a lust for growth. Even in the toughest of property markets, the potential for growth in listings, client base, and commissions will always be very real and possible.
Our ability to adjust to the changes in the market will help us with income and growth. Look for the opportunities in all market segments across industrial property, office, and retail property. When the sales market is slowing, the leasing market is generally active. When the leasing market is active, property management opportunities are frequent.
It is wise to track and measure the inbound enquiries that you are getting on a daily and weekly basis. In that way you will understand the tenants and buyers are looking for and at what frequency. It should be said that quality listings will always create more enquiry most of the time. As a general rule, focus on quality clients and quality listings that you can control exclusively.
To get this strategy under-way, it is necessary to know where you are today when it comes to market share and personal performance. Here are some tips to help you get started:
- Do a signboard count relative to your personal listings. Split that signboard count up into open listings and exclusive listings. On average, a top agent can work with between 15 and 20 exclusive listings at one time. The count on open listings will be interesting but will do nothing to consolidate your market share. It is interesting to note that the traditional signboard still remains an effective marketing tool when it comes to your local area and your town or city. Get plenty of signboards into your region as a priority.
- With any property presentation or sales pitch, prepare for the process on the basis of getting an exclusive listing. If the client declines the exclusive listing process, you have a choice as to whether the listing is relevant or not. Do you really want to take on a listing where a client has all the control and is already working with a number of other agencies or brokerages? If you have a high profile as a top agent in the local area a client will find it very hard to ignore your exclusive listing recommendations and requirements. Stand firm on your requirements for an exclusive listing.
- At the end of each week, track the number of listings on the Internet portals relative to your sales and leasing territory. Also assess the time on market for each property type and with each agency or brokerage. Look for the weaknesses where listings may have been neglected or poorly marketed.
When you have a lust for growth in market share and commissions, the numbers and the ratios I have mentioned will be highly important to your personal growth and improvement as a top agent or broker. Seek to improve at every opportunity.
The numbers relate to the market share end of the equation where quality listings mean everything. It will show you how many listings you have now and help you understand where you need to improve your efforts and focus.
When you control the listing stock exclusively, you control the client, inspections, and the negotiations. Other commercial real estate agents will need to talk to you if they have a buyer or tenant interested in the property.
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