In commercial real estate today, it is critical that we find property opportunity and need early. The tenants and business owners in a local area are a great source of information that can be easily tapped.
Success as a top commercial real estate agent usually comes down to a few simple things more than anything else. In most cases the following are the key factors in building your market share and commissions.
- Local market knowledge relating to prices, rents, new developments, and people.
- Quality listings of local properties for sale or lease
- A comprehensive and up to date database
- Personal accountability on the tasks that matter
If you have these few issues under control, you can do more as an agent and attract more property enquiry. Our industry is based on local market intelligence and knowing the people; everything else ranks second on the list of priorities.
If you are struggling in the property market at the moment, or if you are new to the industry, your first priority should be to get to know the local businesses. In many cases those businesses are tenants, whilst others are owner occupiers.
Cold call prospecting the local businesses will always give you leads of one type or another. The same can be said about systematically canvassing the streets where businesses are located. The best prospecting formula is a mixture of both; it is a personal process that cannot be delegated to anyone else. Personal systems always bring about good results in our industry. The difference between a top agent and an ordinary one is usually in personal systems.
So let’s assume that you are going to contact the local businesses to see what property needs that they have. Here are some ideas to merge into your strategy and questioning process.
- Focus on creating trust with the people that you talk to. You will get more information when people trust you. Trust comes from the connection that we make and out communication skills. I always recommend to new agents that they learn how to communicate and converse in commercial real estate matters. It is a special skill and it requires practice.
- Lease details are of use. At some stage the tenant will want to relocate or at least consider the other properties in the local area for potential change. Ask them about their lease and its expiry.
- Property needs will change from property to property and business to business. Learn about the tenants and businesses that you talk to. Services, amenities, improvements, and location will all be important for every business.
- Expansion or contraction needs will change from time to time as will the requirement for new premises. Most businesses know that change will be required about 12 months before making the move. That is why you talk to them frequently.
- Landlord detail, other business moves, and local area changes are all valuable pieces of market intelligence. Ask questions and record the information that you get back.
It is a simple industry that we work in. Get to know the local people on a personal level, and other things will start to happen.