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In commercial real estate your leads for new business come from a number of sources. We cannot cover all the sources here as they are unique to your market in many respects; however it is worthwhile raising the main common ones so that you have them covered. Importantly you must know what a lead or source of new commercial real estate business looks like, and then you must know how to convert it to momentum and a deal.
There is one main rule on the topic of leads; when you see a lead, you must react to it in a professional and timely fashion before someone else does. Leads are not just for the things that happen today; they can be for things that are potential deals in months or even years. The more clearly you see this, the further business you will generate for yourself.
So here is the most obvious leads generation list. See how you score on these items and make sure that these foundational matters are under control.
- Business Acquaintances - these are most particularly those people that you have known for some time and who are likely to cooperate as an extra set of eyes in the market place. Choose of these people with care and remain in contact with them constantly.
- Professional business people – in your marketplace, there are a number of categories of business people to whom you must remain connected. They are solicitors, accountants, town planners, financiers, architects, and engineers. All of these people have significant involvement with the commercial property industry. They will likely hear about a commercial property transaction before you do. In many cases these people need the assistance of a good commercial real estate broker.
- Local businesses – local businesses produce change and flux in the marketplace. As time progresses, you should constantly encourage ongoing contact with all the major businesses in your precinct. This means all the managers and business proprietors who are involved in property decisions. Recognise that they do not normally know much about commercial real estate. You can bring them updates on rental and property prices regularly to assist them with a future property need.
- Colleagues within your office – many commercial real estate offices are cooperative business environments with salespeople working productively with each other. This means that they share leads and opportunities in sales and leasing. Sharing part of your commission with other colleagues in your office is far better than giving the commission to another outside competitor an agent in the same region.
- Building tenancy schedules – from time to time, you will see or obtain tenancy schedules or inventories that relate to major buildings in your area. Whilst they should be regarded as confidential documents, they will give you a wealth of opportunity if used correctly. Any lease that is to expire inside the next three years is a target for future contact. The relative tenant will need to do something to preserve the function and occupation of their business. It is surprising how many tenants leave such matters to the last minute. The ongoing contact with tenants of this type is highly productive. Your main focus with these people is to establish trust so that they come to you when they need you.
- Competition agents and brokers – normally speaking, the competitor agencies in your area will cooperate on conjunction transactions with their exclusives. The industry is relatively specialised and such cooperation is common in commercial real estate. Importantly, any conjunction arrangement involving other agent’s listings must have a completely signed and documented conjunction agreement before you proceed.
- Satisfied clients – your agency business, if it’s been operating for a number of years, will have a significant list of established happy clients from previous transactions. It pays to keep in contact with these people given that most transactions in commercial real estate happen every 4 to 10 years. The satisfied clients are going to need your services again.
- Other Agents old deals - As a further extension of this item above, you can also monitor the transactions of other competing agents in your area. Any transactions occurred through other agencies over the last 4 to 10 years should be monitored for future re-activity.
- Industry publications – any newspaper or industry publication in your area should be reviewed for information involving businesses relocating, expanding, contracting, or merging. It is surprising how so many agents overlook this obvious source of listing.
- Other agent’s signboards –when another agent puts a signboard on a property, it is imperative that you contact the other owners of commercial property in that street. These people are likely to have an interest in competing with the property that’s just come on the market. They are also more likely to use you as a competing agent.
- Financiers and bank managers – these people need property transactions for their business to survive. They are also receptive to working with professional real estate agents who understand commercial real estate and act professionally. If you can supply them with the source of a new large mortgage, they are likely to offer you the opportunity for a listing or a sale with their clients in the future.
- Planning approvals – keep close to the local council or office of the planning committee in your region, as they constantly consider new planning matters. Some of these offices have minutes of planning approvals that are available for public scrutiny. Check out these minutes and follow through on the opportunities that you can see.
The inventory above comprises the most obvious categories of leads and opportunities. You will be able to add to this as time progresses in your marketplace. Importantly make sure that you have these items well under control as the essential foundations of your business.
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