In commercial real estate brokerage, you will meet plenty of people and engage in many different business situations. People create business, and people should be at the center of any business model for agents and brokers. Relationships create opportunities. Trust is also part of the equation. (NB – you can get plenty of commercial real estate brokerage tips in Snapshot right here – its free)
There will be brokerage opportunities potentially available through all those meeting situations and conversational circumstances. Talk to plenty of people; that is the best way to identify an opportunity in commercial real estate brokerage. Make friends and new business acquaintances.
What can happen here?
Look for the extended or future opportunity in every property change or churn; those opportunities could be in sales, leasing, or property management. Explore all your business relationships at a deeper level to see how a property or client could benefit from your services. In simple terms, go deeper and ask plenty of questions. Provide information to your clients and contacts, and put your fuller team into the client relationships that you currently have active. Build on your client relationships and build on your existing prospect relationships; talk to more people and get in contact with those that you already know.
Look for the Signs
So exactly where can you find the silent signs of an opportunity? Try some of the following ideas for starters:
- Review local properties in your precinct for vacancy pressures and tenants looking to move. There will be pressures on some businesses to expand, contract, or relocate. In traveling through your property precinct regularly, check out the local businesses and the visible signs of property pressure.
- Some older properties will be reaching the stage of renovation or redevelopment. That can be a sizeable opportunity with project leasing or future sales. Track the local properties for potential upgrade, lease volatility, tenant movement, and redevelopment.
- Zoning changes will occur from time to time within your precinct and will have an impact on some buildings. Get a copy of the current zoning plans as they apply to the streets and the suburbs in your primary prospecting zone. Understand the classifications and limitations of each zoning in all targeted precincts. Look for the zoning changes that could facilitate property of redevelopment and business relocation. Talk to the local property owners and the business leaders. Provide information where relevant; your information is valuable.
- As you prospect for new business through your region, create a matrix of lease expiry dates as they apply to businesses, leases, and tenancies locally. Ask questions about lease occupancy and property usage requirements as you talk to business leaders and decision makers. Understand what they need from an occupancy perspective. Shortlist a few properties and locations for them, and provide some examples of recent rentals and alternative purchasing packages for suitable properties.
- Some businesses and tenancies are sensitive to variations in rental and occupancy costs. Expensive buildings from in occupancy perspective can be excellent sources of lease activity and business relocation. Canvass those buildings and the businesses located in each building. You may be able to offer more flexible, efficient, and economical lease occupancies in other buildings locally. Match people and properties; that’s the rule, and that’s how you can build momentum towards transactions.
- Assess the competing listings in your precinct, and as part of that process, track the time on market that applies to listings in both sales and leasing situations. A property that has been on the market for a long time will be an opportunity for listing again through another brokerage at the right time.
There are some good things to be explored here when it comes to any potential commercial real estate opportunity in brokerage sales and leasing. Every transaction can be a steppingstone to a further business activity. Ask the questions and you will see the next potential business step and process. Capture all of your conversations in your database for later review and call up with an appropriate listing.