In commercial real estate brokerage today, many things change in an ongoing way. Through any calendar year cycle, you will see plenty of property related shifts between sellers, buyers, tenants, and business owners.
When you understand what’s happening with each segment, you can meet the challenge of the local property market in a direct and relevant way. In simple terms, you can retain and increase your market share over time.
Top agents predict what’s happening and work the variations of the property market. They look for the changes coming up and then they adjust their prospecting and client service processes accordingly. One important fact that should also be remembered here is that the top agents of the market always control the listing stock. That means one thing and it is called exclusivity.
Always control your listing stock and therefore the basis of the future property transaction. Always list your properties on an exclusive basis. Open listings are generally a waste of time for all concerned, and should only be taken on if you can see some way in which you can introduce a buyer or a tenant quickly and easily. Genuine property clients understand the value of exclusivity and will select the best agents in the location on that basis.
When you are the agent or the broker with the listing and property control, everyone else then needs to come to you with any enquiry. You can qualify and control the enquiry, the inspection, and the negotiation. There is a high value here in you controlling the local area market enquiry.
You can and should add value to the client’s experience in commercial real estate brokerage. You can understand the results your clients are achieving through their marketing efforts and promotional results; you can also help them with the necessary adjustments to improve the property campaign no matter what the challenges are within the location. You can make solid recommendations when it comes to marketing and inspection strategies. That is very important for all concerned.
It is also the case that a client with a quality listing that is competitively priced will get faster and more successful results from exclusivity and the associated dedicated agent focus. The listings that stay on the market for a long time are usually those that are openly listed and are ordinary in quality and location.
To meet the challenges of the local property market you can mix and match all of the strategies below including others that you will identify from the location.
- Understand rental from a strategic view point. Different strategies apply to rental when you are working with tenants vs. landlords. There are variables to play with including market rent, incentives, rent reviews, rental types, and lease conditions. You can offer some solid recommendations that apply to the tenant perspective and the landlord perspective. Understand who your client is and what they are looking for.
- The prices for commercial property in your location will be impacted by supply and demand. Track the activities of upcoming property developments and renovated or refurbished assets. Refreshed properties and new properties will shift the balance of supply and demand. If you are tracking the pricing trends within the commercial property industry for your town or city, you will see how the price averages shift and change with an increase in space availability. You will also see how investment strategies change based on the expectations of future cash flow.
So the message here is that you can convert some good opportunities from the local property market through a level of understanding and adjustment. Meet the challenges of the location, the town or the city. Adjust your prospecting, marketing, and inspection processes to the trends of the local area and the property enquiry.