Working as a Commercial Real Estate Broker or Agent can have its challenges, not the least of which will be in growing commissions and finding listings. During a ‘business year’ many changes will occur with the inbound enquiry rate, tenant and buyer interest, as well as completed transactions.
Given all of this, I like to recommend that agents and brokers are versatile enough to adjust to the shifts between sales and leasing activity. Both opportunities can feed off each other with new clients and deals.
Get serious about leasing and the advantages it can bring you in new clients and leads. A good lease transaction today can bring you closer to landlords and property owners. Over time that can lead to property sales opportunities.
I know that many will say that the commissions from a lease transaction are ‘smaller’ than that which you can get from a sale, but I will say that the fee will depend on the property, the tenancy, and the lease terms. If you focus on the larger leasing requirements in top properties and good locations, you will get reasonable fees. Quality properties always create enquiry.
Here are some tips to help you focus on this leasing segment of the market:
- The local business community will be the source of real market intelligence and tenant movement. Get to know all of the local businesses, the people that run them, and their property needs. It is worthwhile noting that many business owners can give you leads about the area in which they are located. Ask the right questions about adjoining properties and other businesses.
- Profile all of the businesses on a ‘lease expiry’ basis. You can then stay in touch for the advantages of finding another property in the general area. Put all of your tenant and business contacts into a ‘timed diary system’ were you can call the right people every 90 days or so.
- Most businesses will stay ‘local’ when they relocate. They will however want a few advantages in rental, property improvements, access, services, and amenities. This then suggests that it is best for you to work on the quality listings in the area. Stay in contact with the landlords with the good properties that may be under vacancy or leasing pressure.
- Franchise groups will have interest locally to expand and grow their brand. Every franchise tenant will have requirements of location and lease conditions to be considered. Many agents and brokers have built a good income from working with specialised franchise groups. Get to know the criteria under which they will lease a property.
Given all of these facts, I go back to the point that the leasing segment of the market can be very rewarding for you as an agent or broker. Whilst you can specialise in a property type and location, be versatile in both the sales and leasing services you provide.
John Highman is a leading commercial real estate coach who has helped many commercial salespeople and agents around the World promote and grow their real estate business. You will find a full archive of helpful commercial real estate tips and strategies at http://www.commercial-realestate-training.com/