If you have chosen commercial real estate has a career, you will need to establish a prospecting model at a personal level. Every working day that prospecting activity needs to occur to help you build your market share and opportunities. Failure to start the process will delay your results and commissions.
Approximately 1/3 your day needs to be focused on new contacts and lead generation. The remaining 2/3 day should be devoted to marketing and deal negotiation. When you look at your career and your activities in this simple way, it is very easy to focus on the things that really matter.
Here are some strategies to help you with prospecting for new clients and property listings. You can merge these ideas into your personal business plan or business model:
- Understand the location or the territory from where you believe your listings will come. If the area is very large, you will need to break it down into separate sections that can be easily managed. When it comes to prospecting for new business, you need to know the streets and the properties individually. That is why territory segmentation is useful to help you focus and research the market. You will be looking for the quality properties, the people owning them, and the people occupying them. From that base of information you can work with lead generation and growth of market share.
- The local business community will provide significant leads and information regards the local area. Get to know the business owners, the tenants, and owner occupiers. Some of these people will be more active than others when it comes to commercial real estate or property investment. Asking the right questions will help you identify future needs and the property lifecycle that applies to each person or business.
- The personal approach when prospecting is highly important. In a direct way you must connect with the right people to ask the correct questions and identify leads and needs. You will get plenty of knock backs when it comes to prospecting, so the process requires diligence and persistence to extract the right leads from the right people.
There are ways to create relevance and the connections that you make with new people. Creating a conversation is more important than asking a question; and from the conversation you can identify how the person can be helped into the future. Conversation is less threatening from a prospecting point of view and people are more inclined to share information in that way. Conversational skill development will help you greatly.
So here is a short list that applies to identify the people you should be connecting with:
- The local business owners occupying property in and throughout your region
- The investors owning quality listings and quality properties
- Landlords that are struggling with occupancy rates and tenant stability
- Property owners with redundant assets or vacant land
- Property developers seeking to start a new project
- Solicitors and accountants serving clients with property assets
- Franchise groups seeking to expand the network locally
In every single category there will be the need for research and direct communication. When you have identified the right person with the right property, the process of contact commences. Build your communication systems and processes for the long term.
Many property owners and business leaders you approach now or today will not need your help currently; however they will likely need your help in the future. When that circumstance arises, they need to know you as the top agent with the right skills. That is what prospecting is all about; consistent professional contact.