Commercial Real Estate Agents – Get Results in Employing Sales Staff

In any given year, the manager or leader of a commercial real estate agency will be looking for new staff and quality salespeople. Finding the right people to fit the requirements of the local property market and the clients that the agency serves can be an ongoing challenge, as can keeping good people.

It should also be said that many team leaders do not understand commercial real estate as well as they should; they focus on the income potential and not particularly the ‘person’ and their ‘fit’ into the team or the property type. Experience matters in commercial real estate, and people are part of that focus.

There are some real differences between commercial office, retail, and industrial properties. Property legislation, sales procedures, leasing procedures, and marketing are all unique to each type of property. The person you employ needs to understand the differences in property types and how to approach them for the best results.

Questions when employing people

So what roles, questions, and rules can you apply when employing new people in your agency? Here are some questions and ideas to consider as part of that employment interview process.

1. How will your sales team and salespeople operate as a group? Do they need to be supported by administrative staff, and if so, how will that be done? Should they pay for some of that administrative support as an extra deduction from a desk fee?  It is a fact that administrative staff can help your agency fast-track the marketing and results that you need.  The costs of that process should, however, be suitably covered in the business and recovered.
2. Take a look at the commissions relative to each salesperson and perhaps even consider an administrative levy that each salesperson should pay regardless of how much commission they are bringing in. Administration is a cost before any sales or lease transactions occur. When salespeople use administrative support well, the results come in. So don’t stress about my suggestion of a levy!
3. Whilst you may need a single salesperson to fill the role, that salesperson must integrate comfortably into the team. For this reason, you need to choose the right person with the exemplary character and business skills.  There is no point in destabilising the entire team due to employing a single person with the wrong attitude or skills. Some readily available business character tests can be applied to a salesperson before employment. It is money well spent.
4. Make sure that you talk to previous employers to understand exactly how your candidate worked and integrated into the team. Determine if the previous employer would re-employ that person (this question has many different answers).
5. Seek references from at least three people who have known the employment candidate for some time. Those people should be business-related and not family members or friends.
6. The person you employ will be required to prospect, present, inspect, market, and negotiate when it comes to commercial property. In addition to those five factors, they will be required to complete property documentation legally, correctly, and efficiently.  Question your candidate specifically in each of these skills. Make sure they have the discipline to undertake each of these issues intelligently.
7. How comfortable is the person taking orders and instructions as part of your agency? Test them out to see what they say and do. How do they respond to market pressures and negotiation challenges? Ask the questions and test out the person.
8. It pays to have two or three interviews with the same person before you make the final decision. Each interview should have a different person in the room to assist you with interviewing and any final observation. An extra set of eyes and additional questioning processes will always help you choose the final candidate.
9. The required experience and licencing should apply to your choice of candidate. Make sure they have the appropriate legal licencing to sell, lease, and manage commercial, retail, and industrial property in your town and city.  Get them to show you the licence or certificate, as the case may be.
10. Seek evidence from the candidate of previous sales successes relating to commercial property. Get them to show you how they were successful and explain the results.
11. Computer-related skills are today a large part of our business. Most salespeople are required to maintain records and information on a database and within an office management system. Therefore, you need to be certain that the person has the required skills and intelligence to undertake those tasks and follow the rules.

Based on your agency business, location, and existing team, you can probably add to this list. Do not rush into decisions regarding new staffing and employment.

When you have found the right person, put them on a probationary period and get them to sign an appropriate employment agreement with a job specification. Ensure that the probation period and the employment agreement comply with the rules and obligations of employment in your local real estate industry.