Commercial Agents – Problems in Expanding Your Commercial Sales and Leasing Team

When it comes to commercial real estate sales and leasing, expansion of the sales team will give you some opportunity as an agency and as an agency principal with commissions and listings. In seeking to expand, you really do need the right people. Here are my thoughts on that.

The commercial real estate industry is quite unique and requires dedicated knowledge and experience. Finding the right people to fit this need is quite a challenge. Make sure that you have a people with the right character and diligence to drive the business forward. Every potential candidate for employment should be scrutinized for business skill and new business generation.

When you choose the wrong people you will typically have one or more of the following problems:

  • Call prospecting will not be successful and is likely to be overlooked. Many salespeople will avoid the prospecting process at each and every opportunity. They expect business to walk in the door. Call prospecting is perhaps the most important part of the business model for the agency and for each salesperson.
  • The conversions of calls to meetings, and meetings to listings or opportunities will be low. It is necessary to track the numbers of calls and meetings on a person by person basis. When successful conversions are not available or are not occurring, it is time to consider whether or not you have the right staff. Spending too much time with the wrong people can be a costly experience.
  • The level of trust established between clients and staff will be low, and not give you the levels of referral business that you need. Referral business is a significant part of commercial real estate agency activity. It will only occur when you have the right people creating the right networking and connections with clients.
  • The database in your business is likely to be neglected when it comes to the actions of average salespeople. Only the top operators usually maintain the database to a significant level of accuracy. The database is the foundation for future opportunity within your business and without it you will find listings and deals will be harder to convert.

When you locate and employ the right people, you will find that the quality of listings will improve and the conversions to successful transactions will lift. It is wise to work on your sales team members individually given that they are unique characters and require individual attention to reach their budgets and to optimize conversion.

It should also be said that some salespeople are variable in their business focus and outcomes throughout the year. Constant attention to KPI’s will track this problem. A successful and good commercial real estate business is built on the back of excellent people that are well-managed and committed to the task of new business generation and customer service. Employ the right people from the start.

Commercial Agents – How to Manage More Commercial Property To Build Your Business

Managing commercial property is a specialised service provided by some real estate agents. The commercial property management process is totally different than residential property management and rightfully so.

Agents seeking to move into this type of specialised management service should take the time to develop the right people with the right skills. Without this plan of attack to provide the right skills, property performance will be impacted and unhappy landlords will be the result. Property performance is paramount and that focus should override all others.

So the main attributes needed included the job are these:

  • Financial skills to analyse income and expenditure
  • Budget awareness and spread sheet capability to design property budgets
  • Lease documentation interpretation for rent and occupancy terms and conditions
  • Negotiation skills to handle tenants at time of lease events and expirees
  • Contractor negotiation and instruction skills
  • Tendering and implementing maintenance contracts in all levels of building maintenance
  • Ability to see and understand threats and danger in the operation of a commercial property
  • Knowledge in how to optimise the income for the property whilst preserving the functionality for the tenants
  • Ability to manage lease events across a broad variety of situations and circumstances and in doing so, keep clear and precise records of events and instructions.
  • Ability to take and give instructions to and from a wide variety of people associated with the running of the property
  • Know how to optimise tenancy occupation and minimise vacancy potential
  • Ability to negotiate leases with new and sitting tenants with due regard for the landlords plan for the property
  • Maintenance awareness and ability to understand maintenance needs and repair processes
  • Good attention to detail when it comes to recording instructions, events, tasks, and daily events.
  • Ability to understand and write detailed and accurate reports for landlords covering financial matters, documentation, lease matters, tenancy mix and strategy, maintenance planning and budgets, contractors and building works, income analysis and targets, expenditure analysis and targets, risk management, energy management, and legal events.
  • Property business planning of critical issues such as energy, tenants, customers, environment, net income, and property lifecycle.

It is an extraordinary person that can provide all of these skills from the first day in the job; however they should develop these skills quickly and accurately. A quality commercial or retail property will require these base skills plus others depending on the nature of the property.

To manage more commercial property, the property manager should be well in control of all of these events and disciplines. Without these skills the property will likely underperform and threaten the landlords investment.

Commercial Agents – 3 Tips for Leasing Commercial Property

When working as a commercial real estate agent, you will come across the opportunity to do leasing in addition to the normal sales activity in the local property market. Commercial office, industrial property, and retail property, all offer leasing opportunities for your agency listing diversity and future commissions.

Knowledge of market rentals, incentives, lease documentation, and tenant needs will help you with the process of putting a lease together on a vacant property.

The Main Factors in Leasing

When considering the listing of a commercial property for leasing, there are three main considerations or tips that can be incorporated into the listing and leasing process. They are as follows:

  1. Make sure you understand your target market of tenants and what they looking for. In each and every location there will be tenancies looking towards change and relocation. From time to time tenants are also looking to upgrade their premises or adjust their occupancy costs and commitments. This is a fresh and new opportunity for the leasing of new premises. Property agents should spend time in connecting with all the local businesses to identify their property needs, the expiration of their leases, and any tenant requirements for expansion or change of occupied area. You should expect that other specialized leasing agents in the local area will also be speaking to tenants in your managed properties on a similar basis. It is therefore critical to implement a tenant retention plan to retain your tenants and minimise vacancy situations.
  2. Comprehensively market the vacant property into the local business community. When it comes to the leasing of commercial office space, history has proven that most tenants come from the existing local business community. Those businesses are simply seeking to improve their standards of tenancy occupation, or adjust their business commitment to rental and other occupancy costs. They know the local area but they need to change property. On this basis, the marketing of vacant space should occur through both the traditional and non-traditional marketing processes into the local businesses. Firstly, the property should be listed on the Internet plus suitable signage placed at the front of the property or the tenancy. Secondly, the complete details of the property should be itemised in an information brochure to be circulated through the neighbouring properties and local businesses. The process here can be greatly aided by a follow-up telephone call. Even though an existing business may not be seeking to relocate currently, they will usually advise you of their existing lease termination date. Capturing this information into your database will greatly assist future marketing processes.
  3. Identify the competition properties that have an impact on your marketing promotions. These properties may have been on the market for some time; they may even be considering a rental adjustment to lower levels to attract more enquiry. These properties will have a direct impact on the levels of rental and the marketing strategies that you adopt for your subject property. In this case the landlord should be suitably briefed so they understand the impact that these properties could have on your vacant area. Logic says that a competitive rental should be offered in your property to offset the pressures of other competition properties.

These three simple tips have significant impact on the success or failure of the leasing campaign relative to the vacancy. Set your leasing targets so you can proceed through the campaign with clarity and focus. Adjust your rental should enquiry not be generated within the first few weeks of the campaign.