Exactly why should a client in commercial real estate list their property with you for sale or for lease? If you do not have a specific answer that is better than the generic ideas that many agents have, then you have a problem. This problem will manifest itself in a low conversion rate of new listings. So let’s get seriously into what you think you are to and for the property market.
Even though you may work for a specific commercial real estate agent or broker, it is you individually that will drive more business and commissions your way. That means you must specifically be better than your competition on an individual basis and that your market knowledge, property knowledge, negotiation skills, and property investment awareness has to be superior to the other people that you compete with, and be able to prove it.
In commercial real estate sales, leasing, and property management, create specific reasons as to why you are better than the rest. It is not sufficient for you to say that:
- You know the market better than anyone else in the area
- You have great people working for you in your office
- You have done all the deals in the area
- You have been in the area for so many years
- You are bigger than everyone else
- You really know what you’re doing
- You are the good guys that can be trusted
These are all generic answers to be totally avoided if success and credibility is something that is important. If I was a client, I want the proof.
Just try the question yourself for a moment. What makes you better than everybody else that the client has to deal with in commercial real estate? Take a particular property type in which you regard yourself as a specialist then build your answer around this property type and see what you can use in your answers.
Specifically it is the knowledge and competency that you display to the client that is most relevant and important in their decision regards the agent of choice to market their property. The ideal answers that you should have to be an agent of choice should include:
- A database of prospects that you can draw on and introduce to the property without even undertaking media advertising.
- A selection of sale solutions and contract processes that can help the client with the timing of the sale, the method of sale, the timing of the settlement, and the connection of the property to the correct target market.
- Deep and meaningful knowledge regards the improvements which the property has and needs to use just to be competitive and attractive the buyers.
- A selection of marketing alternatives and costs which will reach the target market in the most effective way. Internet solutions will rank high in the marketing alternatives you offer.
- A consistent and detailed awareness of competition properties in the area together with the history of prices and rentals that have been obtained over the last two or three years. Add to this an up to date understanding of ‘time on market’ in your region.
- A detailed awareness of the business community, local demographics, services and amenities, and business sentiment that can affect the marketing of property.
- A toolbox of ideas which will help the client through difficult circumstances when the property is unusual and limited as to the type of buyer.
- A total understanding of the relationships between returns on investment and current property values.
- The total understanding of the types of lease documentation that can improve the investment over time and make it more attractive to an investor and therefore salable.
- An awareness of new property developments in the area together with the supply and demand pipeline of available space coming up over the next 12 months.
It is this knowledge that what makes you far better than the competition agents in your precinct. When you can talk to the client or the prospect about these things in a meaningful way relative to their property challenges, then you will be the agent of choice and you will be converting more listings than anyone else.