If you work in commercial real estate you will soon know the importance of listings and most particularly those new listings that you can control through exclusivity. To achieve that focus every agent or broker needs a listing plan that suits the location, the required income (commission) and property type.
You could say that the listing plan is at the very source of everything that we do. Without it everything is a struggle. Do you have a plan like this that attracts new clients and listings?
The target of the plan is to have all of the following under control and working for you:
- A growing consolidation of market share in a defined local area
- Clients and prospects that know you and will take your call or meet with you without hesitation
- A building of trust with property related people
- A good share of quality listings by property type
- An improvement of enquiries from the local property market
These simple rules are at the centre of everything if you want to improve your real estate business over time.
Commercial real estate is a bit special in that you are dealing with people and property decisions that are largely ‘logic’ based. The emotions that you find in the residential property market don’t normally apply. The ‘logic’ equation centres on things like this:
- What is the best price or rent for the location?
- What property improvements are required to make the occupancy work?
- How can the property improve business results?
- What tenants are needed in the mix to improve net income and market rental?
- How can I minimise the vacancy risk or factor?
- How can I improve the property yield?
The best agents attract the business because they know how to solve these questions and concepts. On that basis your listing plan should centre on local market knowledge and property strategy. Understand the variables locally that help property investors, landlords, business owners and tenants get the results that they need from a property.
To establish your property listing plan the following strategies will help you:
- Define your primary focus area when it comes to locating listings and clients. The area may be part of a city or a number of suburbs.
- Understand the ‘hot spots’ locally when it comes to priority or popular locations for businesses and investors.
- Determine the high quality buildings locally that could provide the required listing stock or tenant movement.
- Identify successful and active property investors and landlords that own local properties.
- Define local businesses that could require property expansion, contraction, or relocation.
- Research the vacant land locally that could be a focus of redevelopment or new development in the coming years.
- What are buyers and tenants looking for when it comes to local property?
- What price and rent range is the average for the area and the property type?
- What is the competition like and how can you stand out as the agent of choice?
- What are the average values of property locally in the ranges of first time investor (strata title), free standing title for long term investment, and a property for a corporate business location?
When you have these things sorted and documented you have something to work with, focus on, and grow your listing activity. It is then a simple matter of talking to a lot of people in each segment group and building long term relationships. Track your contact and prospecting results and actions in a good database.