Key Performance Indicators in Commercial Real Estate Agency Today

In commercial real estate agencies, most of us dislike being ‘tracked and counselled’ on our commission and listing performance. This is even more so when the person ‘counselling’ you is (you may think) of little skill or knowledge as an expert commercial real estate person. So, what do you do with this problem to achieve your desired results?

Its a personal thing. Tracking your leads, prospecting, presentations, sales, listings, and commission results is a good idea for any agent, and will greatly help you. You should not wait for someone to give you a set of real estate performance indicators; you should be doing it yourself. You don’t need anyone else to help you with that.

So, let’s create some progress. Taking small improvement steps daily with your ‘benchmarks’ is essential to help you get somewhere as an agent. Action is a powerful tool in commercial real estate sales and leasing today. Take your actions to a plan.

What’s Happening in the Property Market?

Understand your property market’s current state and future direction and focus on it. Set goals and indicators that can propel you forward as a commercial real estate specialist. Put yourself into your property market; challenge yourself to talk to more people daily.

If you do not know what is happening now and with the property indicators, you will not know where you fit in the local area or territory. While it is convenient to ‘go with the flow’ regarding client contact, listings, and negotiations, you need something to aim for.

Setting Your Benchmarks

Some figures are significant when establishing your KPI tracking processes. Here are some ideas to get you started:

1. The number of sales in the area over the last 12 months. Also, determine the percentage of those closed deals you have.
2. The number of leases in the local area over the last 12 months. Determine your percentage of the action.
3. Track your gross commissions and net commissions. Over a quarterly period, you should see growth.
4. Monitor the number of new people you talk with every day. A target of 10 new people is a viable and realistic number to work towards.
5. Understand the types of properties sold or leased by type, price, rent, and location. There is no point specialising in something that has little momentum or demand in the property market.
6. Track your listings by property type and location. Also, split your listings into open listings and exclusive listings. You can then work out your conversion factors and time on the market.
7. Watch the growth and quality of your database. There is no point in having a database if its information is old or redundant. Look after your database on a personal level. Add to the database daily and create more conversations with the people on your list. Revisit earlier conversations and connections so those people know you.
8. Know your current client count and review it monthly. Clients are the people who have listed with you or paid you a commission on a sale or lease.
9. Track the number of sales or leasing deals converted to property management appointments.

So, all of this is not hard; it is just demanding and different. If you work in commercial real estate, you do need to be a driven person who can take action and be responsible for the results that you get. That is why you should track your real estate agent performance.