How to Prospect For New Commercial Real Estate Listings

PROSPECTING FOR COMMERCIAL REAL ESTATEPROSPECTING FOR LISTINGS
LISTINGSWhere do you find new listings and how do you go
Commercial Retail and Industrial Listingsabout converting them? This list may help. As you
Any Real Estate Agent or Broker who wishes toget to know your clients and the geographical area
have a successful career in commercial and industrialof the market in which you operate, opportunities for
real estate must regularly obtain marketable listings.obtaining listings will present themselves. For example:
Listings are the agents "stock on the shelf" and your- Real Estate Transactions. The successful conclusion
income now and in the future depends on the qualityof any real estate transaction in your region implies
as well as the quantity of the listings that you obtain.that both buyer and seller may be looking for other
The more listings that you have the more buyersoptions. Avail yourself of these opportunities.
and tenants you will attract. This makes the deals all- Liquidation. A failed business is a prime target for
that more easy for you. More listings mean that youagency activity.
dominate your market and lessen the impact of your- Vacant Buildings. Be conscious of any buildings that
competition.become vacant or derelict as these represent
In the commercial and industrial property, listingsbusiness opportunities.
commonly may include:- Intermediaries. Maintain close association with the
- Land that is suitable for commercial, industrial orintermediaries of the real estate business.
retail developmentIntermediaries include such people as financiers,
- Commercial, industrial and retail buildings that are forbankers, insurers, builders, architects, engineers,
leaselawyers and accountants. Their clients will at times
- Businesses that occupy premises from which theyrequire the services of real estate agents and a
serve and supply their marketsrecommendation from these people is invaluable. You,
- Commercial, industrial and retail buildings that are forin turn, can introduce your clients to such
sale to owner occupiers or investors both large andintermediaries and sound business relationships which
smallDeveloping a Client Basebenefit both parties are established and maintained in
The secret of success in commercial and industrialthis way.
real estate is to have your own client base. Those- Newspaper Articles. Articles that are prepared by
clients who work comfortably with you and whoyou or in which you are quoted, bring your name or
respond positively to your advice in relation to theiryour firm's name to the attention of the public.
real estate requirements are the clients you need to- Direct Mailing. The regular mailing of letters that
develop. As it is the clients who pay your fees, andcanvass for properties, when sent to a suitable group
not the tenants or buyers, they are very importantof possible investors or property owners, frequently
people in your business life and it is essential that youresult in listings.
represent yourself strongly to them at all times. As- Private Advertisements. These can indicate
these people and organisations readjust theirproperties that are on the market and the owners
property portfolios to meet their emerging realmay be encouraged to employ your services if initial
estate requirements, they will continue to provideadvertisements have not been successful.
you with listings. In addition, if they are satisfied- Developers/Builders
clients they will refer you to other business leaders,- Neighbours in immediate area
friends and family, and so provide you with more- Property Managements (Rent Roll)
business.- Entrepreneurial Activity
Knowing the Real Estate Market- Previous Vendors & PurchasersIdentifying
To provide effective advice to prospective clients itOwnership
is essential that you know the market - commercial,When you discover a property that you feel could
industrial or retail - that you are involved in and thatprovide a business or listing opportunity, it is
you have detailed knowledge of the geographicalnecessary to identify the owner. The following
area in which you operate. To do this effectively youavenues can often provide this information.
will need to:- Your own office (In each agency there is
- Canvass your territory constantly according to asubstantial information from previous transactions and
plan and become well known to businesses andproperty ownership which can be consulted).
people in the area- Local Government Records
- Know every property that is for sale or lease in- Land Title Information
your territory- Electoral Rolls
- Maintain a list of property transactions that occur- The Telephone Directory (including the Yellow
and have occurred in the last 3 yearsPages in the case of businesses)Further to this there
- Keep an eye out for private transactions byare many other sources of information to be used
property ownerswhen identifying owners. These are:
- Involve the management of your office and other- Property ownership lists
team members with what you are doing- Historic Lands Sales Records
- In addition, you should understand the factors that- Use other agents signboards as a reason to talk to
motivate companies in your area to move to otheradjacent owners in the locale
space, and you should be aware of the forces that- Commercial property is transacted to a cycle of
encourage investors to buy and sell in your area orinvestment and history shows that it is about every
precinct.WHAT MAKES A SUCCESSFUL AGENT OR5 years. Look at the old sales records in your area
BROKER?for the next cycle of potential sales.
So what makes a successful agent or broker from- Tenants will usually tell you the property owner if
the client's perspective, and someone that the clientyou ask
wants to do business with and through? It is an- Directory boards in buildings are a great source of
interesting question to ask from a clients perspective,leasing intelligence
but history shows that the factors which stand out- Business Telephone Lists and CEO contact names
as being of prime importance to clients are the- Stock Exchange Information and updates
agent's knowledge of the market and the quality of- Company Searches for large businesses in your
the advice given. The negotiating skills of the agentarea
and the ability to act quickly are also important and- Newspaper Stories & Articles
rank highly. Adherence to client instruction, property- Be willing to dare and try something newTo
marketing skills and confidentiality were seen to beundertake this process you must be diligent and
of slightly lesser importance.thorough in your activities so that you do not leave
It is clear from this analysis that the factors whichany 'stone unturned'. Nothing is more frustrating that
are going to have a vital influence on the successfulanother agent's sale or lease signboard appearing in
listing of a client's property are knowledge of theyour territory that you just covered last week.
market and the quality of advice. Owners are lookingThe above information may seem logical; however it
for agents and brokers who know the marketplaceis commonly overlooked or not acted upon in most
and have readily available records information aboutcases, given that many salespeople do not have the
companies and investors that are looking to makepersonal and sustained discipline needed for the task.
immediate decisions on properties they require, own,The best commercial real estate agents and brokers
or occupy. Your clients want an agent who willuse this model as their source of listing opportunity.
immediately bring a listed property to the attentionIn closing we should say that this prospecting
of such people.process does require a good database program to
So, at the point of listing, being able to communicaterecord and channel your ongoing findings. The value
effectively with the owner about the commercial andof a good database program is high in list of tools of
industrial market place and the prospects that area professional agent or broker working on commercial
available on your database could certainly lead to areal estate. Good hunting!
successful relationship and hopefully an ongoing one.