One thing that is always important in commercial real estate agency is the amount of quality listings for sale that you may have at any point in time. In simple terms you must ‘hit your targets’ when it comes to knowing and connecting with qualified sellers of good quality commercial property.
You must have quality listings on your agency books to attract the active buyers and the tenants that you need. Prospecting should be your most important process each working day.
Far too many agents spend too much time chasing the ideal property for a buyer or a tenant; unless the buyer or the tenant commits to you in the form of an agency appointment, they should not receive a large percentage of your time.
The fact of the matter is that you can attract many more buyers and tenants when you have the listings and are promoting them comprehensively.
Vendor paid marketing funds
One formula that will always help you build market share is that of converting vendor paid marketing funds from each listing. On a month by month basis how many listings have you converted with a budget of vendor paid marketing funds?
Given that the vendor paid marketing strategy is usually a part of the exclusive listing process, every month you should look at the value in dollar terms that you have achieved and converted for the promotion of exclusive listings. On a month by month basis you should be improving your vendor paid marketing funds.
Get to know plenty of Sellers
Sellers come and go from the market for many reasons so you need to know a lot of sellers or property owners thinking of selling in the future. Regular ongoing contact will always be required with the right people to help you build market share.
When you are new to the commercial property industry, focus on attracting listings and you will find that the buyers and tenants will come to you as a direct result. In saying that, exclusive listings are part of the process and the best way to achieve control of market share. Practice your presentation and your sales pitch around the strategy of exclusive listings.
So let’s look at some ways to connect with plenty of sellers in the market today. Here are some of the most effective ways to build your database of property owners as potential sellers:
- There are different categories of sellers to work with; some are more productive than others when it comes to listings. Property investors, business owners, and property developers are usually high on the agenda when it comes to agency prospecting and direct contact. Determine who the players are in your property market today based on existing portfolios, property ownership, and potential new developments.
- Most property investors will buy and sell real estate to a pattern. Some investors hold properties for a number of years and then ‘on sell’ for the advantages of capital gain. Some investors do not sell at all but would rather accumulate property assets. Get to know the local property investors and their intentions. Understand what they are looking for when it comes to future property acquisition; they will have targets relating to potential income, development, capital gain, property type, and tenant mix. You can then advise them of the right properties when they come to market.
- Look back into the properties that have been sold over the last five years through your local area. The people that purchased those properties are likely to act again very soon. They may seek another property acquisition, or perhaps sell and reacquire another property asset, or expand and redevelop their current property. Look for the variables that you can help with.
Commercial real estate sales can be one of the most rewarding parts of the property industry. Transactions are based on business logic and opportunity rather than the emotions of residential sales. If commercial property is something that is of interest to you as an agent, remember to focus on the acquisition of quality listings rather than the servicing of buyers and tenants. The agent with the listings will always win more deals and opportunities over time.