In commercial real estate leasing, you should track your progress in several ways and keep score when it comes to your progress and successes in your local property market. It’s a personal thing to put in place, and quite important.
The indicators of leasing are very different to that of sales. The benchmarks and indicators that you track will help you ‘tune’ your real estate leasing business and its growth over time. So, there are some choices to make and systems to put in place.
Your ‘Score’ Process?
Expect to ‘tune’ your real estate business and adjust your efforts throughout the year as factors of investment and enquiry shift. What should you watch and score your performance against as a leasing agent? They are to be your numbers, so choose well. Here are a few good indicators that you can start with leasing; others can be added based on your location and or preferences:
- Prospecting calls made each day – Your outbound calls made each day will be a solid foundation of real estate activity and growth over time. Strive to achieve a certain number of calls as a minimum each working day to landlords and tenants. The conversations are slightly different; however, you can offer some high quality and quite specific services in each case.
- Repeat contact – It is a known fact that as you make more calls over the weeks and months, the quality of your call conversations will increase, so the calls become longer but more productive. You create more meetings with people that need help or local property information. The essential ingredient to the concept is that you contact people in a repeat way so that you are building your ‘local specialist’ profile.
- Tenant meetings created – From the previous points, you will be creating more meetings with tenants, and particularly those that are thinking of relocating or expanding in the forward months and up to perhaps 18 months. Ask questions so you can position yourself to help tenants and businesses find the right business location and or the property with the appropriate level of occupancy costs.
- Landlord meetings created – Strive to get in front of landlords each week; do the ‘meet and greet’ as much as possible, so those local and important landlords know you as the property expert that can help them. They are the people that will have occupancy pressure and vacancies from time to time. Check out their properties regularly so you can see the vacancies as they arise; get back in contact when you can see the vacancies occur.
- Major buildings canvassed – Connect with all the tenants in the major buildings in your territory; make the calls, ‘door knock’ the businesses. It is a fact that the major buildings are those of the highest quality, but they are also the buildings in any town or city with the highest occupancy costs. The main thing that generally retains tenants in those ‘costly’ buildings will be the size and type of incentive offered and as negotiated at the time of lease. As a lease gets ‘older’ or comes to an end, the incentives disappear. Survey all the tenants in those larger buildings to understand what they think about occupancy in their building and particularly so when the lease is coming to an end.
- Leasing listings by precinct and property type – Know the number of listings that you hold in your primary business precincts. Split those listings between ‘open’ and ‘exclusive’. Spend a lot more time on the ‘exclusive’ listings and serve the respective clients (probably the landlords) comprehensively and deeply during the listing term. Report on inspections, enquiries, and give feedback on all interactions.
- Leasing commissions converted by the transaction – Larger commissions come from leasing better properties and in those buildings in prime locations. Tenancy size and the duration of the leases negotiated will also have something to do with the commissions achieved. You will always have choices here when it comes to working on the leasing of properties. It is better to walk away from a smaller listing and or a poor-quality property; don’t waste your time trying service something that doesn’t match the market.
- Database of tenants and landlords – Each month talk to ever more people and particularly the local tenants and landlords in your precinct. It is a daily event, so track your progress. Know where the leases are coming to an end and what the business priorities are of the tenants that could be moving.
- Referral business – Quality service creates a good degree of referral business with landlords and tenants. You can work for either client type in your leasing business, so refine your services to suit. Develop a series of specialized services that match local landlords and tenants, then ‘dig’ for the business in a comprehensive way. Top quality service creates referral opportunities over time. Tally your referrals each month; ask for the referrals after every success achieved in leasing property, suite, or project.
These are good indicators to track in commercial real estate leasing. These numbers will help you see your successes and opportunities with both landlords and tenants.