So many agents struggle with the systems behind finding new clients in commercial real estate. It’s a very common problem that needs to be understood. There are two alternatives to prospecting and networking in the industry as an agent. Consider these:
- You can find new people to talk to on a daily basis and build your database. Over time you can grow some of those connections into listings and leads. Or….
- Working for an agent or broker and take the leads that come to you from listings and the website. Some of those leads will convert to deals of one type or another.
Building Your Real Estate Business
The second point is the slow way to build your real estate business. Waiting for the new leads to come to you is not a good way to grow your market share!
Unfortunately, most agents do little regular prospecting and thereby are relying on the leads that come from the agency to get growth in income. Over time the listings are slower and the commissions are nothing to get excited about. The ‘peaks and valleys’ in income are frequent and frustrating. It’s a problem that needs to be solved.
When you work in the property industry, the clients that you know or connect with are going to be the listings and commissions of the future. The ‘cycle’ of commercial real estate activity is relatively long, so you must stay in the contact process with your prospects for many months if not years.
So the obvious fact is that you need to know many more clients and prospects. That’s where the problems start for most agents. The question then occurs, ‘How do I find more clients and property owners to talk to?’
Systems are Important
Let me put one key fact on the table to consider. It takes real systems and effort to find clients and prospects. It is a very personal process and it should be happening every day.
Building your client and prospect connections should occur through a process of personal contact including the following:
- Research the right property owners on a property by property basis and make direct contact. To do this you will need to do a title ownership search. There will be a database of property ownership for you to use in this process. As a general rule, choose your properties individually after you have inspected them to know that they are of some relevance and quality.
- Talk to business owners in targeted locations. Some of those business owners will be tenants and others will own the property in which they are located. Either way, you will get valuable information from them. Ask them what their intentions are regarding property and business activity. Keep the contact up for the future.
- Make lots of cold calls on a daily basis to supplement the previous two points. Use the business telephone book to do this. Ask the people that you talk to about their property needs and intentions.
All of these things will require focus and dialogue development. Put yourself into the prospecting process and use your time effectively. Generate the leads and the contacts that will take you to the top of your market.