Maximizing Potential: The Critical Role of Referrals in Commercial Real Estate

In commercial real estate, it pays to concentrate your listing and client contact efforts in particular ways. Creating a referral business is a big part of that process. Here is a mindmap to help agents and brokers with that process today.

There are several leads and chances to be identified in commercial real estate brokerage each day by asking enquiries and initiating referral conversations. It’s all about asking the right questions at the right time to the right people.

How many people do you know now where you can ask questions and seek leads and referrals? Your database now will have groups of people that you have served well in the past. They are a good place to start.

Use the real estate referral concept with your clients, prospects, existing database members, and those involved in a transaction. Increase the number of conversations about that company model every day.

Referral Mindmap: Download Here

Word of Mouth Opportunity

So, a real estate firm built on referral leads and prospects is simply a business that has grown because of a conversation and word of mouth. If you perform a great job in brokerage sales or leasing, referral leads and prospects will be easy to find and convert.

There is an ‘art to asking’ questions of the clients and prospects with whom you work. It has been argued that getting business through referrals is usually more straightforward than locating new people and prospects; yes, you must use both strategies, but there is a nice balance between discussions with new people and referral discussions with individuals you know.

Volumes of People

So, the objective is to build a referral network that allows you to reach out to a large number of people in the business sector, as well as local property investors and entrepreneurs. Gain traction from your real estate success stories and recent transactions.

Request testimonials as part of your ongoing transactions, and compile a favourable set of materials that you can share with the proper people as you look for new clients and prospects. Referrals are beneficial as an extension of your services and solutions.

As you build client relationships, the benefits of a referral network become more apparent. Some agents do not spend enough time talking to people they already know. It may take three or four conversations with the same person before they agree to meet or discuss property needs in further detail.

Track Your Progress

As you collect referrals for your business model, track how the process affects your activities and business. Include some case studies in your resources and marketing materials to make every referral interaction fruitful and positive.

If you have done an excellent job as an agent in a property marketing campaign or through a transaction towards a successful sale or lease, the referral opportunity exists. You can even add the referral question to your client interviews at the end of a transaction.