Victory in our industry depends largely on market conditions and directed effort. The results that you achieve in commercial real estate brokerage will depend entirely on how you match your efforts into the market conditions. The property market changes frequently, and that’s what you need to look for and adjust into. You can improve your goals with directed effort.
In every property market there will be opportunities to be had and identified through different categories of people and services. Understand how you can service tenants, property investors, landlords, and business proprietors. Put local people at the center of your database activities in a regular and relevant way.
Understand what is happening
There are many different factors to consider and shape, when you look into the market conditions of your town or city. Here are some specific categories of property churn and change that are likely to offer service and business opportunities over time:
- Tenant Advocacy – Business owners and tenants today require specialist services when it comes to property occupancy and identification. If you have a reasonable understanding of the leasing market and the factors of supply and demand locally, then you will have the basic requirements of a tenant advocacy service. If this is the market share for you, then focus on the corporate tenants of reasonable size. They will usually be prepared to pay a reasonable commission for the professional services offered.
- Landlord Services – Local property investors are commonly looking for assistance when it comes to resolving vacancies, moving tenants, finding better tenants, and improving market rentals. Those factors can form the basis of landlord service activities.
- Buyers Agent – The suggestion here is that you can work exclusively for buyers when it comes to commercial, industrial, and retail property. They will your clients and the people paying your commission, and on that basis they will be requiring specialist services to identify the right property locally for their business requirements into the future. If this is the segment for you, then focus on the larger corporate owners and property occupants.
- Sellers Agent – This is the type of client that most agents and brokers will focus on. In saying that, exclusive listing control is required if you want to command control of the listing and the client. Convert your listings exclusively, and adjust your property presentations accordingly.
- Development Services and Project Management – Local property developments will come and go from the market based on the factors of supply and demand. You can achieve good levels of commission from a property development and its activity over time. The number of transactions from the single property can be numerous and of reasonable scale. That being said, you do generally need to devote large upfront effort to the project before it reaches market. In other words, you could be spending your own time for little reward at the front end of the project. That is a decision that you need to consider as part of working this property segment. Have you got the time to spend at the front end of the project when the commissions are not ready to convert?
- Property Performance and Enhancement – If you understand the complexities and the elements behind property leasing and performance, you can offer specialist services relating to tenant mix, tenant placement, financial performance, and asset improvement. You could say that this service is a variation of property management, however specialist tenant mix services are unique and can dictate a reasonable and large fee as the property is improved over the years. Understand how you can enhance the tenant mix for the clients that you serve, and then charge a reasonable leasing fee as you move through tenant change and tenant identification.
- Renovation and Redevelopment factors – Some older properties locally will need to move to the next stage of renovation and redevelopment. The larger office buildings and shopping centers will always have a renovation and redevelopment requirements arising as part of their business plan and property performance model over time. You can help with those factors of change and opportunity. If you have a reasonable command of market rentals, leasing strategies, tenant placements, and tenant identification, the investment services that you can apply to renovation and redevelopment will be significant and relevant. The landlords that you work with require professional services with tenants and leasing, and you can be the person to help them.
So there are many good things that you can do here when it comes to the local market conditions and commercial real estate. Look at the requirements of the property market, and then understand the skills and knowledge that you can apply to those requirements. Your professional skills can be valuable to the clients that you serve, so market yourself accordingly and comprehensively on a local basis.