When it comes to winning market share as a commercial real estate broker or agent, it pays if you can divide up your market or listing territory into segments. In this way you can then focus your marketing efforts and activities.
Results in commercial real estate come from systemised focus and you have limited time available each day for prospecting and marketing.
It is a fact that you cannot be everywhere at once when it comes to prospecting and networking. As an individual broker or agent look at your market and consider the following facts:
- What is your specialised property type?
- Where is your market?
- Why should people do business with you?
- How can you cover the sales and listing territory?
- What is your competition doing now with marketing?
- What is your market share and how did you get that?
When you answer these questions quite clearly you can soon see the strategies required to move ahead as a top agent or broker in your local area.
So let’s look at some rules that can help you divide and conquer your local area for increased commercial real estate activity and opportunity.
- Determine a key service that you will be focusing on. That could be leasing, sales or property management. You can also have combinations of sales and leasing, or leasing and property management.
- Build a marketing package for your ‘key services’. Carry that package of information with you so you can connect with new people at any opportunity. Practice your scripts and dialogues for your ‘key services’.
- Identify and set up your main primary territory for new business based on local area growth and opportunity. The primary area of focus should give you 80% of your business. Assumptions should be made on the local area and how it is changing.
- Determine geographical or road boundaries that contain your primary area of focus. From that you can determine the desirable and active zones for sales and leasing activity. You can also determine the better streets and properties to connect with.
- Your territory is likely to contain many properties and businesses. On that basis split up the zone into segments of 100 properties. Segment by segment (each of 100 properties) you work through the local area to identify owners and businesses. Talk to more new people every day in those zones to identify property change and opportunity.
- In addition to the above strategies, connect with property developers and franchise groups separately. You never know when they may require a new location or parcel of land to build on.
New agents and brokers in the industry need a system to proceed and attract clients and property listings. This process will be a very good start in doing that. You can modify it to suit your market circumstances.
In commercial and retail real estate today the leasing process is critical to the income achieved by landlords and property investors. It is wise for a commercial real estate agent or broker to offer a comprehensive leasing service as part of specializing in Investment Property. There are plenty of lease deals to be done; it is just a matter of finding them.
Many times you will see market pressures on vacancy, lease occupancy, and rental levels entering into the lease negotiation between the tenant and a landlord. Make sure that you as the leasing agent have a total and comprehensive awareness of the prevailing market conditions and that you share that information directly with your client as the landlord. Prepare them for the real facts of a rental negotiation.
The landlord must be thoroughly briefed about the property market conditions prior to any negotiation with a tenant. Realistic rental levels together with appropriate lease terms and critical dates should apply to any lease negotiation in today’s business environment. Every lease negotiation becomes a strategy taking into account the conditions of the property and its improvements, the current vacancy levels, market rentals, and the requirements of investment performance.
Here are some tips to help you with understanding the property market today and the prevailing lease conditions:
- The levels of vacancy relating to your town or city and the property type will have an impact on incentives and market rents. Look at the potential for oversupply and understand how it may impact the future rentals and investment performance. New property developments coming into the market will shift the balance when it comes to vacant space and the quality of buildings offered for occupancy.
- Review the market rentals that apply within the property type and your location. Those rentals will need to be tracked and monitored for future lease negotiations and the conditioning of your clients when it comes to lease is under negotiation. Understand the impact and the relationships between market rentals, outgoings, and incentives.
- There are different rental strategies when it comes to outgoings recovery. In any new lease, there will be decisions to consider relating to outgoings recovery and therefore the setting of gross or net rental. Levels of market rental will apply in each case so you will need to understand the averages that apply to outgoings within the property type given your location, your town or your city.
- Talk to business owners and tenants regularly. Ask questions about lease occupancy and lease termination. You will soon find tenants considering property change due to the pressures of expansion or contraction within their business today. You can track all the tenants locally through specific processes of direct contact, database, cold calling, and door knocking. Every leasing agent should have a comprehensive awareness of the leasing intentions of every business within their territory. In understanding the leasing intentions of tenants locally, your professional leasing services become more valuable to the landlords of the area. That will then help you in closing more leasing opportunities and listings.
So these are some important factors to understand when it comes to leasing property locally. Take the time to connect with tenants in your market today and review the prevailing market conditions when it comes to rental, incentives, lease documentation, and property improvements. Track the enquiry rates coming to your office regularly so that you can profile tenant leasing requirements for today’s market.