PROSPECTION OF COMMERCIAL REAL ESTATE ADVERTISEMENTS
Commercial Retail and Industrial Listings
Any real estate agent or broker who wishes to succeed in their career in commercial and industrial real estate must obtain marketable listings on a regular basis. Ads are agents’ “stock on the shelf” and your current and future income depends on the quality as well as the quantity of ads you get. The more listings you have, the more buyers and tenants you will attract. This makes transactions all the easier for you. More ads mean you dominate your market and reduce the impact of your competitors.
In commercial and industrial property, lists can generally include:
- Land suitable for commercial, industrial or retail development
- Commercial, industrial and retail properties for rent
- Companies that occupy premises from which they serve and supply their markets
- Commercial, industrial and retail properties for sale to owner occupiers or investors, large and small
Develop a customer base
The secret to success in commercial and industrial real estate is to have your own clientele. Clients who work comfortably with you and who respond positively to your advice regarding their real estate needs are the clients you need to develop. As it is the clients who pay your fees, and not the tenants or buyers, they are very important people in the life of your business and it is essential that you represent yourself firmly to them at all times. As these people and organizations readjust their real estate portfolios to meet their emerging real estate needs, they will continue to provide you with listings. Also, if they are satisfied customers, they will refer you to other business owners, friends and family, and thus provide you with more business.
Know the real estate market
To advise prospects effectively, it is essential that you know the market – commercial, industrial or retail – in which you operate and that you have an in-depth knowledge of the geographical area in which you operate. To do this effectively, you will need to:
- Constantly canvass your territory according to a plan and make yourself known to businesses and people in the area
- Know all the properties for sale or for rent in your territory
- Maintain a list of real estate transactions that are occurring and have occurred within the past 3 years
- Keep an eye on owners’ private transactions
- Involve your office management and other team members in what you do
- Additionally, you need to understand the factors that are motivating businesses in your area to relocate to another space, and you need to be aware of the forces that are encouraging investors to buy and sell in your area or neighborhood.
WHAT MAKES AN AGENT OR BROKER SUCCESSFUL?
So what makes an agent or broker successful from the customer’s perspective, and someone the customer wants to do business with and through whom they do business? This is an interesting question to ask from a client’s perspective, but history shows that the factors that stand out as being of paramount importance to clients are the agent’s knowledge of the market and the quality of advice given. . The agent’s negotiation skills and ability to act quickly are also important and feature prominently. Compliance with client instructions, real estate marketing skills and confidentiality were considered to be of slightly less importance.
It emerges from this analysis that the factors that will have a decisive influence on the success of the listing of a client’s property are knowledge of the market and the quality of the advice. Owners are looking for agents and brokers who know the market and have readily available information on businesses and investors looking to make immediate decisions about the properties they need, own or occupy. Your clients want an agent who will immediately bring a listed property to their attention.
So, at the time of listing, being able to effectively communicate with the owner about the commercial and industrial market and prospects that are available on your database could definitely lead to a successful and hopefully ongoing relationship.
PROSPECTING FOR REGISTRATIONS
Where do you find new ads and how do you convert them? This list can help you. As you get to know your customers and the geographic area of the market in which you operate, enrollment opportunities will arise. For example:
- Real estate transactions. The successful conclusion of any real estate transaction in your area means that both the buyer and the seller can look for other options. Take advantage of these opportunities.
- Liquidation. A bankrupt business is a prime target for agency activity.
- Vacant buildings. Be aware of any buildings that become vacant or derelict as they represent business opportunities.
- Intermediaries. Maintain a close association with intermediaries in the real estate sector. Intermediaries include people such as financiers, bankers, insurers, builders, architects, engineers, lawyers and accountants. Their clients will sometimes need the services of real estate agents and a recommendation from these people is invaluable. You, in turn, can introduce your clients to such intermediaries and good business relationships that benefit both parties are thus established and maintained.
- Newspaper articles. The articles you prepare or in which you are quoted draw public attention to your name or that of your company.
- Direct mail. Regular mailing of real estate prospecting letters, when directed to an appropriate group of potential investors or owners, frequently results in listings.
- Private ads. These can point to properties that are on the market and landlords can be encouraged to use your services if initial listings have not been successful.
- Neighbors in the immediate vicinity
- Property management (Rent)
- Entrepreneurial activity
- Previous sellers and buyers
When you come across a property that you think might offer a business or listing opportunity, it is necessary to identify the owner. The following leads can often provide this information.
- Your own office (In each branch there is substantial information on previous transactions and land ownership that can be viewed).
- Local government records
- Land title information
- Electoral lists
- Telephone directory (including yellow pages in the case of businesses)
Additionally, there are many other sources of information to use when identifying owners. These are:
- Property lists
- Records of historic land sales
- Use other agents’ signs as a reason to talk to adjacent owners in the area
- Commercial real estate is dealt with on an investment cycle and history shows that it is approximately every 5 years. Look at past sales records in your area for the next round of potential sales.
- Tenants will usually tell you the landlord if you ask
- Bulletin boards in buildings are a great source of rental information
- Business Phone Lists and CEO Contact Names
- Stock Exchange Information and Updates
- Company Search for great companies in your area
- Stories and newspaper articles
- Be ready to dare and try something new
To undertake this process, you must be diligent and thorough in your activities so that nothing is overlooked. Nothing is more frustrating than another agent’s for sale or rental sign appearing in your territory that you just covered last week.
The information above may seem logical; however, it is generally overlooked or ignored in most cases, since many salespeople lack the personal and sustained discipline necessary for the task. Top commercial real estate agents and brokers use this template as a source of listing opportunities.
In conclusion, we should say that this prospecting process requires a good database program to record and channel your ongoing discoveries. The value of a good database program is high on the list of tools for a professional agent or broker working in commercial real estate. Good hunt!