In commercial real estate, the listings of other agencies will always be an opportunity for you for future business. Whilst it is always nice to create fresh new listing business yourself as part of your prospecting model, the other agents listings should be watched for the opportunity that they create.
Those other listings will give you not only local knowledge relating to market conditions, but also real opportunity to convert other listings around them.
Where are you today?
Before discussing this matter further, it should be said that your market share today should be identified and quantified. This will mean a regular ongoing tally of listings on an agency and salesperson basis through the local area both in property sales, and property leasing.
The best way to achieve these numbers will be through monitoring signboard counts, Internet listings, and newspaper advertisements. It is fundamentally important to understand where you are today before you can determine how to improve your market share. Is also important to understand who those competing agents are that may dominate the market today and why they do so.
The other listings
The other agents listings locally will offer some leverage and opportunity to you as part of market churn, and new business. Here are some ideas to help with that:
- Expired property listings that have been neglected by other agencies over the marketing time, will be listing opportunities for you today. In many cases, the property owners of expired property listings will be frustrated and therefore highly motivated to choose another agency and fresh marketing strategy. That being said, any new listing achieved with these property owners should be taken on a basis of modified price, modified rental, or changed marketing. There is no point in repeating any marketing errors that were unsuccessful with the earlier appointed agent.
- Every existing a property listing with another agency is an excuse for you to talk to the surrounding property owners near the particular listed property. A property that is available for sale or for lease is usually a catalyst for change in any other properties nearby. If any local business owners or property investors are thinking of selling or leasing, the best time to do so would be coinciding with nearby properties marketed with other agencies. The process of competition will help you convince those business owners or property investors to list and market their property today.
- Time on market will be a factor that relates to both sales and leasing. Some properties will take longer to shift than others. There will be reasons behind the delay in achieving a successful transaction with any property. In some cases, the reasons may be regional, or maybe even attributable to the particular listing agent. Interpretation and observation is really important to help you get on top of the market trends. You can talk about time on market and levels of enquiry locally to help convert more listings your way.
- Methods of marketing will vary from property to property and location to location. Importantly, the best method of marketing should be chosen for the particular property type and the prevailing market conditions. When you observe the other agents listings, you can see what works and what doesn’t when it comes to marketing. This information can be leverage for you when it comes to your sales presentations and pitching for further listings.
- There is a distinct cycle of property change that relates to commercial property sales and leasing. Whilst this may vary on a location basis, you can usually pick the cycle averages from previous sales and previous leasing regionally. For this reason, you should go back in history looking at all the property sales and property leasing activity with all the other agencies. Commercial and retail property sales usually happen about every 5 to 7 years. At around about that time the property owner is either looking for property change or expansion of their property portfolio. Over that period of 5 to 7 years, there will usually be sufficient capital gain for a successful property change or property acquisition. The same timing factor can be said regards leasing activity although for different reasons. Many commercial and retail leases are timed to initial terms of 3 to 7 years. The tenant and or the landlord in any lease are likely to be looking for property assistance as part of that lease cycle timing.
There is no doubt that significant opportunity exists for you today in monitoring the activities and listings of your competing agents. That being said, it is not the only thing that you should do as part of your prospecting model, although it will help you significantly if approached in the correct way.