In commercial real estate brokerage you will be working with property sellers in a variety of ways. The property types and the market conditions will all influence the ways that you can help the sellers with their property challenges. To do this correctly you must know your ‘numbers’ from the market and in your town or city.
There are two sets of numbers to watch. Firstly, watch the numbers that are relevant to the sellers and property owners needing to make a sale. The main ones are:
- Properties sold by category (office, industrial, retail)
- Properties sold by volume
- Price averages by property type and sale
- Time on market for all types
- The level of inbound enquiry for the property type
- The types of improvements that are attractive to buyers today
- Competing listings on the market today in the location
- Price per unit of area (improved property)
- Price per parcel of vacant land
- Location based sales
- The supply and demand for local commercial, retail, and industrial property
All of these numbers will give you valuable trends in market activity. Those numbers can then be used in presentations and proposals so that clients can understand the market. They can also understand how to confidently take their property forward into a marketing campaign with the right target audience.
The second group of numbers to watch will be relevant to your agency business and brokerage. Those numbers will show you how you are tracking with market share, listing activity, and conversions.
Here are some of the categories to monitor:
- The number of exclusive listings that you are converting on a weekly basis
- The number of open listings on your books currently
- Seasonal sales activity that applies to the territory and the region
- Completed transactions for exclusive listings vs. open listings
- The amount of inspections being undertaken per property and by listing type
- The levels of inbound enquiry for each marketing campaign
- The best methods of marketing that apply to enquiry creation
When you understand the numbers, you have something to work with. You can see where the trends and the shifts are occurring with property enquiry and buyer activity.
A top salesperson will usually have a selection of numbers to back up their recommendations and strategies to the clients that they serve. In any period of 12 months, the market will change and the numbers will show that. You can then make the appropriate adjustments to improve your commissions and your listings. You can also help your clients find the buyers that they are looking for.
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/