In commercial real estate you will get a lot of leverage from market intelligence and local property knowledge. This then says that you really do need to know the things that are going on in your real estate zone or listing patch. That may be an entire town or a portion of a city.
At the basic end of ‘market intelligence’ you really must have a good understanding of these things:
- Properties currently listed for sale or lease with all agents
- Properties being marketed by owners and landlords directly
- Businesses seeking to expand or contract in property use or occupation
- Time on market for listings today and historically
- Selling and leasing seasons of activity
- Prices of properties sold
- Rentals of properties leased
- The key property investors that own the high quality properties
- The larger businesses that operate in the area
- The levels of enquiry coming into your office for various property types
- The types of properties that people are looking for
- Property developers that act on new opportunities locally
- Solicitors with property related clients
- Accountants with clients that may need property help or guidance
Connecting with these people will help you build market share. Over time they will need the help of a specialised agent or broker.
When salespeople new to the industry first start their prospecting, they find that it takes time to meet the right people and create meetings. They struggle and they can feel rejected given that most of the prospects that they talk to will not require property help at that time. That rejection is just fine and quite normal; the cycle of commercial real estate activity is long and takes time to evolve.
Do your research. Connect with the right people every day and stay with them for the long term. Relevance and consistency in prospecting are the keys to winning new commercial real estate business.
You can use market information for leverage. Here are some ideas on that:
- The solicitors and accountants in your area will have clients that need property help or may own the larger high quality properties. It takes time to win the trust of these professionals because they will want to protect their clients from any ‘unprofessional’ agents and brokers. You look at these solicitors and accountants as targets for the long term value that they can give you. It is likely that they will firstly ‘test’ you on a difficult project or client. When you show your real skill and knowledge, the extended business will come your way.
- The properties listed with other agents will give you a reason to talk to other property owners in the same street. Some of them may wish to compete with the nearby listing.
Gather your market information and then use it to the best of your ability. Get leverage into your sales and leasing territory.