New business is an important part of the commercial real estate brokerage industry and we have to be selective on just what type of business we target. That being said, sometimes we forget to focus on the right type of properties and clients.
The amount of commission that you earn during the year and into the future will be influenced by the choices that you make with clients and property types locally.
Set Your New Business Rules and Targets
Here are some ideas to help you get some traction in your market with better business outcomes:
- Better clients – With a small amount of research you can usually determine the ideal clients to work for in your town or city. Look at the motivation behind some of your property clients and determine just why they would want to get involved with property activity. Perhaps they already own one or more properties now. Check out the property ownership records locally to know how you can help them.
- Portfolio owners – Some property investment trusts will own substantial property assets across a diverse set of locations and property types. Diversity provides stability in portfolio performance. Portfolio diversity leads to multiple levels of opportunity.
- Multiple transactions – There are links between sales, leasing, and property management. Some clients will be active in all categories. Can you help? Also consider the special project appointments where you can work on many transaction needs in the one property.
- Size of transactions – The larger buildings are sources of bigger commissions due to the higher prices and or higher rentals. Focus on the larger properties for that reason.
- Type of transactions – Link up your team so that all transaction types can be served with the special clients that you act for. Sales, leasing and property management linkages can grow your commissions substantially.
- Better properties – Step up in your property prospecting. Understand the quality of properties that people really want. Go out and find those properties. Determine exactly what properties are more desirable locally and why that is so.
- Location – Some locations are more desirable than others. Business precincts should be determined and prioritized so you can focus on the best locations where businesses and investors like to get involved.
- Timing – Certain times of year are better than others when it comes to selling, leasing, buying, and developing. Look at the property cycles in your location. Watch for the pressures that occur from seasonal holidays and business cycles.
- Marketing methods – The marketing efforts and directions you apply to selling and leasing your listings will usually be driven from vendor paid marketing funds. Understand how to make your marketing activities highly effective to pull in the enquiry. Convert more vendor funds to the listing and marketing process.
So these 9 things are perhaps the main factors to help you with property market traction and results as a real estate broker.