As you look to the next twelve months in commercial real estate brokerage, there are some planning issues and opportunities to be worked with. You could call it a ‘sales plan’, and it could be for yourself in sales or leasing. In that plan, you will have ‘numbers’ relating to commissions, listings, clients, and conversions.
The random approach to commercial real estate doesn’t work and never will. Put some thought into your real estate business and drive it forward with a base of strategies as part of your plan.
The people that struggle in the industry are those that fail to get organized and set targets for growth. It’s quite correct. Consistency is a big thing in commercial real estate brokerage. Where are you now in your career or business plan? The right targets for you are those that are aligned to the property market, the economy, and the property types locally.
Broker Organisation Plans
A small bit of organization at a personal level will go a long way to creating traction and momentum with clients and listings. Here are some simple strategies for you to start that:
- Listing stimulus – It is a fact that listings and new clients don’t often ‘walk in the door’. Luck has no role to play in commercial real estate brokerage. What you need to do here is create a program of focus and opportunity for yourself with your preferred property type and within your local area coverage. Determine the number of listings that you want to work on over a period. When you know the number of listings that should be working on, understand the conversion rates and the exclusive listing requirements to help you command and dominate the local area. Drill down into the property types and the local area or precinct for opportunities with business owners, tenants, property investors, and developers. Create a plan of listing stimulus allowing for your property knowledge and specialization. There’s no point specialising in something that you cannot professionally cover or canvas in the local area.
- Exclusive conversions – Exclusivity is an important element of commercial real estate brokerage today. Convert more of your listings exclusively overtime through a deliberate and direct listing pitch process. Help your clients see the value of the exclusive listing process and the time that you will apply to the marketing and negotiation process. Refine your listing pitch, so it is aligned with the client more clearly and directly.
- Marketing monies growth – Understand the value of marketing a property comprehensively in the local area. Establish some promotional campaigns and some choices for your clients to consider when it comes to marketing a property for sale or lease.
- Time on the market – How long should it take to sell or lease property in your location? Yes, I know that there are seasonal changes to that time frame through the year. However, it is a good idea for you to keep to the lower end of the time on market averages with your listings. To achieve better results faster, you should think about local area coverage and direct marketing. That is how you move listings faster.
- Commissions per transaction – In commercial real estate brokerage, it is not so much about your commissions as an earning number, but rather commissions per transaction. It is always better to achieve larger commissions per transaction; the way you will achieve that is with better quality properties and larger properties. Choose your properties more directly as you build your market share. Work smarter, not harder. Adjust your prospecting model to reflect the ‘quality’ end of the real estate business.
So, these five simple focus points will help you develop and drive your real estate business. They will help you create a sales plan.