Like it or not, there will always be sales drop outs from the agency team in a commercial real estate brokerage. Some people simply do not have the skills and the focus to build market share and commission opportunity. They don’t last long.
A top commercial real estate brokerage is a direct reflection of the quality and the successes of the people within. The interaction between the agency team and the administration support team should also be well structured and solution based.
It is important to identify personal weaknesses within the agency team as early as possible. Some of those weaknesses can be addressed and removed over time through directed training and support.
Any weaknesses within the administrative team should also be identified and resolved. The administrative team is there for one reason only, and that is to provide the necessary support behind successful agents and brokers. When the interaction is well managed and successful, the brokerage will achieve a greater number of listings, inspections, and commissions.
When you look at the average numbers relating to sales drop outs, it is not unusual to have an agent failure rate of between 40% and 75% in the first 12 months. This doesn’t need to be the case given that directed training and support will always improve the numbers and the performance of individuals.
In a quality brokerage with full agents support and training, those numbers will improve and lower significantly to between 25% and 40%. Staff retention and training should therefore be the focus of building a quality brokerage over time. The team leader or the agency principal will be part of that process.
Here are some facts to remember and understand:
- The commercial real estate industry is challenging and tough at the best of times. The only way to work through that is to establish a personal system of focus and momentum.
- A team approach will give encouragement to individuals as they struggle with the personal work practices and market knowledge. It is up to the team leader to provide the workplace environment and in doing so provide positive praise and reward at an individual level.
- When it comes to employing new people, fully investigate levels of property knowledge, professional skills, and sales character. It is a costly exercise to employ the wrong person within an agency or brokerage.
- Some markets are tougher than others. The same can be said for property types and designated territories. Every broker or agent should be matched in skill and knowledge to the market that they work within.
Improve the performance of members of the sales team through directed training and support. Manage the characters of individuals as they struggle with the pressures of the market and the opportunities that are available.