In commercial real estate brokerage the goals that you create can be a significant source of motivation and activity. Those goals should be personally oriented towards new business generation, listing activity, commissions, and time on market.
Track and measure key performance indicators to help you understand where your goals are taking you and how things are improving. When you work in this way, the results that you achieve give you further momentum and greater energy to generate new business. It should be said that you goals should also be realistic and yet opportunity based. They should encourage you to achieve forward momentum.
It should be said that every commercial real estate agent or broker should have a business plan that includes a carefully selected group of goals and targets. Those numbers will be related to key performance indicators at a personal and individual level. Each week those numbers can be assessed, compared, and measured so that you can see how things are starting to come together from a new business perspective.
Goals and Targets Provide Motivation for Agents
The suggestion here is that you take control of your market and your activities as an agent. Take deliberate steps every day to improve the results you achieve. Here are some ideas to help you with key performance indicators and goal oriented motivation:
- Meetings – Track the number of new meetings that you create each day and each week. Ideally you can target a realistic number of two new meetings per day with new people. That conversion factor is quite achievable if you are prospecting regularly and directly with new people in the market.
- Listings – From the previous point about generating meeting activity, you will frequently create listing or transaction opportunity across sales, leasing, and property management if you create those meetings. A successful and high-grade agent will usually produce at least two new exclusive listings per week if they are working to an average of two new meetings per day. Notice that the factor of focus here is exclusivity when it comes to the listing. When you control your listings, you control the enquiry and the transaction opportunity. Open listings really do not count when it comes to tracking listing numbers. If you happen to sell or lease an open listing it is simply a product of luck more than anything else.
- Number of exclusive listings – Most agents can work with 10 to 15 exclusive listings at one time. After that point, the process becomes too difficult and the listings will not be serviced correctly. Focus on a good number of exclusive listings as part of your marketing process. When you convert a listing to exclusivity, ensure that you have a good degree of vendor paid marketing funds to devote to the campaign and property promotion.
- Dominate the market share and the property type – You should track the number of signboards that you have in the local area together with the number of listings you have placed on the Internet. Over time the number of listings that you control in each case should improve both online and off-line. Make it a target personally to have at least 10 active exclusive listings at any given point in time throughout the year.
- Time on market – Keep the time on market factors under control when it comes to your quality listings for good clients. Some properties will be on the market for a very long time given the unique location or use that may apply in each case. Understand the uniqueness of each property and then target market the correct set of buyers and tenants in each case. You can usually shorten the time on market factors providing you focus the vendor funded marketing campaign with creative advertising and well-crafted messages. All of your marketing efforts should be specific and special to the listed property and the strengths that evolve from the improvements, location, and investment opportunities. That is why exclusivity is the best way to reduce time on market; it is also the best way to you to improve your listing conversions and commission opportunities.
So there are plenty of things for you to do here when it comes to directing your efforts and setting your goals as a commercial real estate agent or broker. Understand the realities of the property market in your town and city, and then start taking action each and every day. The best results in commercial real estate come to those people that work with a plan of action and build the necessary momentum to make things happen.