When a person starts in commercial real estate brokerage today they usually struggle for some time when it comes to prospecting and client contact. They simply do not have enough people within their database to achieve any level of churn when it comes to listings and commissions.
The Client List Rule
The most important foundational element to any successful real estate business will always be the database and the client list. It directly follows that prospecting for new business is the most important activity in any brokerage and with every agent. Any person that overlooks this prime priority task in their business will usually struggle and fail within the industry quite quickly.
A Common Problem
It is also interesting to note that many agents new to the industry will randomly prospect rather than focus specifically into new business generation; they get distracted and diverted into things that really don’t matter. That error of judgement or failure of establishing a reasonable business system then creates difficulty in overall personal performance.
Here are some proven processes to help you establish a strong database and client list within commercial real estate brokerage today:
- A precinct approach is required. Divide your territory up into the best locations and the best streets. You can then research the property owners and business owners within those zones. You can find out what they are seeking to do when it comes to property occupation and ownership; you can then also understand their motivations. It is better to focus your new business efforts into a small zone of properties in a deep way, than to generically cover a huge area in a random way. The people we serve are both savvy and selective; they know whether we have specific market share or we are just another agent chasing new business. Your market knowledge and market coverage will be critical to generating a reasonable listing conversion and client list. Specialisation at a personal level will be part of that process.
- The business telephone book will be a massive source of new business opportunity. It is simply a matter of understanding how to use the business telephone book as part of a cold calling prospecting process. It is preferable to focus your calls within a business type and then telephone all the businesses within the business type. You can then match your telephone dialogue to the specific business that you are calling. You can also focus your prospecting efforts into the business types or segments that are offering the best level of churn and activity.
- Previous property transactions can be identified from sales and leasing records. You will have those records within your brokerage. It is simply a matter of researching the people that were involved in those earlier transactions. It is quite likely that they will soon need other property assistance and help with occupancy and or investment.
- Research property development approvals and applications. The local planning office will have current and historical records related to property development activity. From that list you will find plenty of people to contact and call. You will also find plenty of activity to follow up on which may evolve from that development change application or property modification.
- Current property owners should be researched in a logical and precinct based approach. Street by street and zone by zone you can move through the area identifying the property owners. You will then have a good selection of property investors to connect with and owner occupiers to talk to. They will all have property needs to address at some stage in the future. You want them to remember you at the right time. Regular ongoing contact will be required to make that occur.
There are some valuable and yet simple strategies to use here as part of you creating your commercial real estate database. Understand your precinct and city for what it is when it comes to property churn, ownership, and change. You can be part of the services in satisfying those needs. Positioning is important when it comes to real estate business today.
Build your client and property database in a regular and ongoing way through personal prospecting effort. Soon you will find the best people that need your services; be selective when it comes to clients and property listings. When the business starts to flow in, do not stop prospecting in any way or form. Devote at least 2 or 3 hours per day every working day to the process of prospecting.
You can get more database tips and ideas for Commercial Real Estate Brokerage in our eCourse Snapshot right here.