When you work as an agent in commercial real estate sales and leasing, you have to be prepared to pay the price when it comes to building your listings, commissions, and market share. If you do not pay the price individually, you will grow personally poor very quickly. The costs in your career do not go away and you can only tolerate them for a short period of time.
Even in a tough market and with a newer salesperson, I would expect a deal of substance to be done inside the first 3 months of employment, and then every month thereafter. You do need to choose the deals that bring you the better properties and commissions. The better properties will generate enquiry that can be shared across other quality properties. One quality property of reasonable size and location is worth 10 average ones.
Everyone I come across that is new to the industry looks at the commissions that are available and thinks that they can make a lot of money fast; yes they can but they must pay the price. It takes about 2 or 3 weeks in the job before the ‘honeymoon period’ wears off and the reality sinks in. Hard work is required. It takes 6 to 12 months of hard work for the business and your market to take off. The earlier you get started on the hard work the better for you.
Property sales and leasing transactions do not normally come to you easily or ‘walk in the door’ of your office. You must make your market and you must build your market share; that’s the way it is. Clarity on your targets and action to achieve them are components of the future for any striving salesperson.
So what do you have to do to pay the price in this real estate market? Here are a few tips:
- Get to know all the major property owners in your area. This is quite difficult as the research required to chase down these people is slow and laborious. Many agents try to get others to do this for them; rarely does this work. Personal commitment is required.
- Contact all the business leaders in your area to see what property needs or challenges they have coming up. They may own or lease the property in which their business is located. Ask the questions and find out what the next stage of property activity may be.
- Make at least 2 or 3 hours of cold calls every day to the business community in your property precinct. At least half of the calls you make must be to new people; in this way you can build the market share you require. Far too many agents keep to the same group of people only to find in a couple of years that they have lost the bigger new deals coming in.
- Personally commit to building your database of tenants, property owners, business leaders, and property professionals. This database will be critical to your future and time in the industry.
- Seek referral business from all the people that you know and that you talk to. The ‘laws of linkage’ apply and will make your network expand if you ask the right questions.
- Build a list of qualified enquiries from the people that speak to you on other properties. It thereby follows that every good listing that is opened up for marketing will give you a group of people for your database.
- Practice the essential parts of your job that will help improve the outcomes that you seek. The parts are usually presenting, prospecting, pitching, negotiating, documentation, database practices, inspecting properties, and marketing. When you improve all the parts of your business the sum total outcome is greater than the individual elements.
In every market and with every property type there is business out there to convert; listings and commissions are to be captured. The diligent and driven agents are the ones that build opportunity. They are the ones that are of value to the sellers and landlords with ‘property pain’ to resolve.