Posted on 09 March 2012.
The commercial real estate market is diverse and different to normal real estate. The levels of knowledge required by the sales and leasing team are specific and complex. The team needs to comprehensively service the following issues:
The marketing of commercial and retail real estate into the local property investment community
The target marketing of each and every listing that comes into the agency using the best available marketing tools.
Understanding the levels and methods of sale and lease as they apply to different property types currently.
The sources of opportunity and enquiry given the existing property market economic conditions.
The supply and demand for future commercial and retail property as it applies locally
When the real estate agency becomes more successful, there are alternatives of employment and roles within the business that can be expanded or changed. Here are some ideas to help with that.
It is beneficial to identify and employ a person specifically for the role of listing agent. Their job will be to prospect continually for new business within the target categories that suit your business model. The choice of person here is quite important as they need to be consistent in their prospecting and have the character to suit good client relations and communication. Ultimately this person should share in the commissions from the completed successful transaction. They may also achieve some remuneration from the creation of each and every listing. This assumes that not every listing will sell or lease however the listing agent should be reimbursed for their successful conversion of their prospecting to a quality listing. One important fact needs to be understood; the listing agent has to attract the right quality of listings and list them at the right price or rental. There is no point in listing something that is of poor quality and will destroy your business image. Continue Reading
Posted in Commercial Realtors
Posted on 08 March 2012.
We all know that salespeople come and go from the commercial property industry. When the property market gets tough, it is the good people that get through because they work harder and have a great database, and the average people that leave the industry because their income is too low. On this basis you as the office manager or agency principal should always be on the lookout for better people in the market that can work for you.
Here are a few ideas about finding and employing new people in the typical commercial real estate agency today:
Other agents working for the opposition should be watched for opportunity. If you decide to take on one of these people, test them out on skills and proven deals done. Not all salespeople are as they appear.
If another agent from another office comes to you and asks for employment, be careful to assess their reasons for change. In most cases they are not performing in their current business; you need to know why.
Look around the existing properties in your area and see just what agent has the greater numbers of signs. Track their time on market and success rates with their listings.
A great salesperson is highly motivated to do the right things every day. This skill does not easily come to all, so ask the questions and get real some answers about how your candidate for employment would operate their business day and week.
Local property knowledge is essential to attract listings and convert them to new business. Ask questions of your candidate in regards to the local property market and what they know about it. This will soon highlight any shortcomings.
An established prospecting model should be part of the agent’s current business processes. Get them to tell you how they prospect and why they do it. Ask to see the size and type of database. Get them to explain how they work their database.
Listing skills are primary to finding and converting new opportunity. A good listing agent will build your business faster if they really have the listing ability under control and optimised.
Marketing skill will help convert a listing to enquiry, and it is this enquiry that can move to inspections and closed deals. This property market requires great salespeople that really know how to market, inspect, and negotiate.
Documentation skills should be established. An agent or salesperson with poor skills here will likely be a liability and a risk to your professional indemnity insurances.
Property knowledge in commercial real estate is an interpretation process involving rents, prices, leases, sales, incentives, and factors of supply and demand. There are reasons that a sale or lease will occur and the answer usually lies in these categories. Ask questions about these things and what the candidate knows about them. Continue Reading
Posted in Commerical Real Estate
Posted on 07 March 2012.
Every commercial real estate agency should have a job specification in place that relates to the individual roles of selling and leasing property. The job specification can be provided to potential candidates when they are considering employment in your agency. The specification can also be used as a benchmark when salespeople are underperforming or not getting the results that you seek.
There are differences in activities between property sales and property leasing, however in each case you require a highly motivated salesperson that is prepared to drive their market share and build more business.
Here are some tips regards the typical specification that can be drafted for your agency employment processes. You can add to this list based on your business, location, and targeted property types.
The agent should be required to prospect for a period of at least 2 hours on every business working day. The method of prospecting will really depend upon the property type and the surrounding market, although you would expect the prospecting to include cold calling, face to face meetings, and door knocking business owners.
The agent or salesperson should be producing a certain number of listings on a weekly basis. This number will depend upon the property type and the local area although most typical agencies would expect at least two new listings per week. That being said, you then get into the qualification of the types of listings required and that will include open and exclusive listings. The bias should be towards exclusive listings on a minimum agency term of at least three or four months.
You may want to nominate the types of business to come into your agency. That will be in the form of sales listings, leasing listings, and property management appointments. As part of that process you can also qualify the ideal level of property size, price, or rental. In that way you will get away from the less profitable and smaller properties in the local market. One of the biggest problems facing new commercial agencies today is that they take on just about everything that comes in the door. In many cases, the same amount of work is required for a small property as opposed to a large and complex property. If a small property comes to your agency then you need to decide whether it is worthwhile handling the listing or alternatively passing on to another agency.
You want all your salespeople to develop a significant market share within the property type that they specialise on, and the location. As part of monitoring this, you need to know their signboard presence and Internet listing presence on a monthly basis. The salesperson can track these numbers for you and provide you with a summary at the end of each month. Alternatively you can get your administration staff to track these numbers locally from sign counts and internet listings across agencies. Continue Reading
Posted in Commerical Real Estate