When working as a commercial real estate agent or broker, it is essential that you develop and implement a prospecting program to generate new leads. It is a personal process and it is not something that you can or should delegate.
Sometimes it amuses me when I hear that an agent has paid a considerable amount of money to a marketing company to “cold call” their entire sales territory or market segment looking for leads and prospects to serve. Delegating the prospecting process to a marketing company or other ‘unqualified person’ is a waste of time and money. Commercial real estate is an industry built on personal relationships and trust; A marketing company or an employed advertising agent cannot offer that level of communication or service.
So why would a real estate agent hire a ‘marketing company’ to make prospecting calls? The answer in most cases is blatantly obvious; the agent does not have the skill or the discipline to make the prospecting process successful.
If you want to win the new business, you’ll need to do it yourself. Yes, it takes time to get results and you’ll need to develop some new skills, but discipline will help you get the results you’re looking for.
One thing must be said here; Commercial real estate brokerage is tremendously rewarding for sellers who can work hard and follow a system or plan. Searching for leads and opportunities is part of the process or game. It is something personal and cannot be delegated.
Here are some ways to find new business, better property listings, and good clients:
- Redundant Properties – Some properties will move to a redundancy level due to age, deterioration, rezoning, or lack of tenants. When this happens, it’s time to move on to the next phase of the property’s “life cycle.” A good real estate agent can see the signs early and work closely with a property owner as they begin to deal with the investment change issue.
- Vacant Land: As a city expands or suburbs change, vacant land will be rezoned for new development. Stay ahead of this opportunity by monitoring planning and development applications at your local planning approvals office. Get copies of the public minutes of planning committee meetings.
- Old Listings: Some listings don’t sell or lease on the first try. What you can do here is take the property off the market today and then revisit the effort to market the property a few months later with another, perhaps different marketing approach. Updating a listing is a valuable business process.
- Open Listings – The best way to sell or lease a property is through an exclusive listing process. Open quotes are very much a process of luck; Most open listings stay on the market for a long time and are on average far less successful compared to the dedicated marketing efforts of an exclusive listing. Revisit old open listings to see if they can be optimized for a new marketing effort.
- Larger Businesses: Local businesses participate in the property, either as tenants or owner occupants. Business owners will need help with property from time to time. The best way to take advantage of that opportunity is through direct and continuous contact. Cold call every business in your town or city and talk to them regularly about property needs and changes.
- Around Other Listings – When a competing agent puts a property on the market, they can use that listing as a reason to talk to all the adjacent and nearby property owners and businesses. A property listing can be the catalyst for talking to others to see if they would like to compete or do something for themselves.
- Street Scanning – Street by street, systematically move through your sales territory and research all owners. Eventually, you’ll create a nice list of owners for your database. Ongoing contact will allow you to build valuable customer relationships and trust levels that help increase commissions and listings.
- Cold calling: The phone is still the most effective business tool we have. Professionally handled direct calls will help you reach new people. Selective research of property owners and business owners in your area will support the cold calling process.
A simple listing like this will bring you a wealth of real estate opportunities and opportunities. The secret to making things work for you is to do it yourself.