In commercial real estate, every salesperson should review their activities at the end of each month and each year or financial period. There are things that they can learn from the process. Important things like market share, commission growth, and client results are all key performance indicators to identify and address. (NB – get our free Commercial Real Estate Brokerage ‘Snapshot’ right here)
When a salesperson knows how things are changing for them, they can move on the opportunities and fix the problems. It’s all about key performance indicators and what you do about them.
Why do this? When you know your results over a long period such as a year, you can see where you have improved in the critical ways that matter from a business perspective in brokerage and agency. Every year there will be factors of change in your property market with clients, inquiry, and listings. Understand how those things are impacting you and then shift your strategies.
So, how can you do this? Try some of these for starters in building your planner:
- Listings by type – look at your listings over time and understand the ratios between open and exclusive listings. Hopefully you will be working with a reliable number of exclusives in an ongoing way. It is hard to build your professional profile in commercial real estate if you only work with a random group of open listings. Get some quality listings for your location and control the listing stock. Focus your prospecting model into exclusive listings.
- Time on market – the time that it takes to move a listing will largely be based on the listing type, your marketing methods, the target market, and the client’s acceptance of current marketing conditions. These things are driven from your listing pitch and professional services. Refine your approach to listing and negotiating with your clients.
- Location of business – where are the listings coming from. A tight territory of buildings and streets will bring better business results for any broker or agent. They can then get into the specifics of what is happening with both businesses and property owners.
- Types of clients – you can work with many different types of clients today. Tenants, landlords, buyers, and sellers are all looking for professional property assistance. Market your real estate business into the clients and the locations. Be specific in every way possible. Look at your commissions by sale and by lease transaction; analyze the averages. Lift the numbers per transaction so you are optimizing your time and not working so hard to lift your income. Small properties and low quality properties can absorb a lot of your professional time; don’t make that mistake.
- Marketing money – it is a known fact that vendor paid marketing funds will help you build more inquiry and move a property faster. Put that fact into your listing pitch and negotiate every listing accordingly. Show the client some examples of paid marketing campaigns and give them samples of how that can work for them.
- Client list – grow your client list over time, and watch how that happens. Some of your prospecting methods will be more effective than others and on that basis, you can repeat the methods that work for you. Soon you will also see that some clients are better than others from a value and repeat business perspective. Work with the better clients and buildings for your location. Grow your client list, but be selective when it comes to your clients; avoid those that can’t decide on things, or are unrealistic in property expectations. Let some other broker or agent deal with the time-wasting clients in your local area.
- Referral conversions – when you grow your client list, create a good number of successful property transactions, and work your database comprehensively, there will be some referral business up for the taking. Are you aware of that opportunity and are you asking for those precious referrals? A completed transaction is always a chance to ask about other people and relationships that may require commercial real estate help.
Simple review processes like these will help you position yourself for business improvement in commercial real estate. Next year can be your top year from a commission and listing perspective. Understand where you are now, and see where the improvements can be made.