This column is offered to help educate agents new to commercial and investment brokerage and serve as a review of basics for existing practitioners.
To take a goal to reality requires a plan; a consistent course of action. To establish a business plan you must first establish your career goals. Where do you see yourself at the end of next year; someone who has established greater recognition as “the commercial agent” in their area; the “top producer in your company;” someone who has had more time for community service and family; and/or someone who has exceeded this year’s income goals?
A financial goal for a commercial real estate agent may be to make $100,000 in commission next year. The goal needs to be broken down into steps. Each quarter you need to earn $25,000, each month’s production needs to yield $8,333 in commissions. What specifically will be required? What are the average sale and lease commissions in your area? How many sales and leases do you need to close each month to accomplish this? How many Listings do you need? How many presentations do you need to make each week? How many people do you need to meet each year? Answering these questions is the basis for your plan of action.
Daily prospecting is a must and should include “door to door” canvassing. Become “the commercial agent” in your area by systematically visiting each store, office or business in a specific geographic area. Introduce yourself, see if they have any real estate needs now or upcoming in the future. “When did you say your lease was up?” and always ask for a referral, “by the way is there anyone else who you think I may be of assistance too.”
A reflection of who our customers and clients are reminds us that they are small business owners, professionals and large corporations.
Where can we find many of the business leaders of our community? Consider networking by joining the local Chamber of Commerce or local service organizations: Kiwanis, Lions, or Rotary etc. Become active in these groups and get to know the other members (your future customers).
Edward Smith, Jr., CREI, ITI, CIC, GREEN, MICP, CNE, is a commercial real estate consultant, instructor and broker at Smith Commercial Real Estate, Sandy Hook, CT.