Commercial Investment Property – Keys for Real Estate Agents to List and Sell More

In commercial real estate, getting to a closed deal and final commission is a number of critical steps. You cannot take shortcuts. Most particularly you have to understand the start of the deal and the reason for it. This is the key to long term listing and selling in the industry. So let’s put some of these steps together.

First and foremost, you should be a specialist in a part of the industry that has the opportunity for reasonable growth and reward. This could be retail leasing, retail selling, industrial leasing, industrial selling, or office leasing, and office selling. It doesn’t really matter what part of the industry you are concentrating in, but it does matter that a future exists with the type of property you have selected and that you can relate to the type of property.

The second step in the process of building your business involves understanding your market. You cannot be a specialist without completely understanding the deals that have been done and the deals that need to be done. This knowledge will involve benchmarks of property performance including income, rental type, expenditure, methods of sale, and methods of lease, construction costs, and property usage. When you pick up any information from the marketplace it is best to collate the information for future reference. It is this information that will allow you to negotiate with skill; it is this information that will give you a higher value in the marketplace as a real estate agent.

As part of this process, there is a group of property professionals that you need to know. They are an abundance source of new clients and new business. They are solicitors, accountants, architects, engineers, and property valuers.

The third step in the process of building your business involves understanding the prospects and what they need. This means getting in front of the people who need to do the deals one day in the future. In simple terms this is called relationship building and quite frankly not enough is done by most real estate people. When you establish a face to face contact with the right people you set the foundation of building opportunity. Essentially people need to build trust and respect with you. There are far too many agents are out there who are all fighting for the same prospects. The agent that wins the contact and the commission is the one that has started the relationship and continues it over a lengthy period of time.

Once you have a relationship with well qualified groups of prospects, you can start to drill down on the types of property deals they need. You can actually look for the properties that they require and put the deals together before they even reach the marketplace. In commercial real estate, it is very common to do off market deals.

This property market is currently frustrated by restrictive financing. The banks and the lenders are slow to approve or accept financing proposals on the larger property deals. The property valuers are also very conservative and reluctant to put on any higher values on property for financing purposes. This will change, however and for the moment, we must target the people who have higher equity in another property or business activities, therefore they are less reliant on higher loan value ratios.

There are many property investors and businesses out there that are quietly waiting to seize the opportunity of a new property purchase if the right properties become available. These successful businesses and investors are the ones that you need to know in this market. The more people you know, the more opportunity you will generate.

So how many prospects should you be working in a market like this? Your database should include at least 300 high end prospects, and at least another 300 other prospects that can be converted to higher value. Before you start saying that it is a high number, I will let you into a little secret. This database formula is built on the basis of five new contacts every working day. Within a period of six months, you will have built the database of this size. As you proceed down the path you will also have achieved extra sales and leasing deals that you didn’t have before. Success in the industry belongs to those that can get highly organised in the prospecting process. Persistence pays rewards in ‘bucket loads’. Good luck.