In commercial real estate brokerage it is important that you track and measure particular numbers that relate to sales performance. In that way you can adjust your efforts in prospecting when it comes to parts of your territory and within property types.
Each year there will be shifts and changes relating to seasonal property activity. Shifts will occur between sales and leasing activity, and also within property types. When you can see those changes occurring, you can adjust your marketing efforts accordingly. A top agent will usually adjust to the market and predict the necessary changes to do so in the right way.
The performance indicators will also be quite useful when presenting and pitching your services to clients and prospects. It is hard for a client to refute or dispute real numbers that apply to the region and the local property industry.
Here are some indicators to monitor at a local level:
- The supply and demand for various property types locally across office, retail, and industrial space
- Prices per unit of area by property type
- Rents per unit of area by property type
- Sales and leasing activity between the prime locations in your territory
- The number of sales that have occurred over the last 12 months in comparison to the previous 12 months
- The number of leases that have occurred over the last 12 months in comparison to the previous 12 months
- The time on market relating to sales vs. leasing
- The success rates that apply to open listings vs. exclusive listings
- The types of properties that people are looking for in today’s market
- The average of sale price against units sold
- The average of rental by property type per area of measurement
So you should be tracking numbers for your own purposes in understanding market share but also in understanding how to convert more transactions. It should be noted that when the sales market is suffering some slowdown, leasing activity is generally a good alternative to move into and work with. Versatility is a great advantage when you work in commercial real estate brokerage.
The secret to winning more new business as a commercial agent or broker is in making the adjustments to your own prospecting and marketing activities based on property trends. Look for the changes and the frequency of enquiry between tenants and buyers. Understand the property types that they are looking for and why that is so.
So the message is quite clear; when you monitor the performance measures from the market, you can get more traction when it comes to leads, listings, and commissions. Market knowledge and intelligence will help you match the right properties to the right listings in a professional way. That will then mean more commission over time.