You will make a variety of presentations in commercial real estate, depending on the situation. The needs of the tenant, real estate outsourcing the property buyer, or the property seller are typically their main concern.
to the heart of the matter
Each of these groups has particular property demands and areas of emphasis. The sales pitch or presentation must specifically identify and address their needs. To discover the main difficulties and concerns, many successful commercial real estate agents would first meet with the client or customer. This enables the commercial representative to meet with the client or customer again in a few days with a well-organized proposal that caters to their demands.
The focus is on THEM, not on YOU!
When creating a commercial or investment property proposal for presentation, the document should focus 90% on the client and the property. Due to the proposal document’s focus on the agency and the staff, you frequently see this guideline ignored or disobeyed.
Rarely is the sale or purchase of real estate a straightforward issue of the rental agreement, purchase price, or the property’s specific features. In most cases, a fundamental equation of need that the consumer or client has must be satisfied by a mix of these things. You’ll be able to tell what kind of agony the consumer or client is going through by getting them to this basic demand. On this, you concentrate.
They possess expertise
It’s interesting to notice that a large number of clients and customers in commercial real estate seem to feel at ease during business negotiations. This indicates that they might wait until they are prepared to provide the entire broad picture or all the details of a transaction to you. With carefully chosen questions that enable the agent to read the client’s response’s body language, conversation and connection should be biassed in favour of the client or customer during the presentation process.
When you are certain that you have located the client’s point of pain in relation to the real estate transaction, you start to enlarge the issue in light of the current market before presenting the client or customer with solid and sensible remedies that your real estate agency firm can give. In the current market, financial issues like the following are always at the centre of commercial real estate transactions:
Low vacancy rates
There are other options and opportunities for properties.
erratic financial flow
erratic tenancy mix
rising building operational expenses
a change in demographics that makes the property vulnerable to an uncertain future
the burden of mortgage payments
the asset’s age
Refurbishment or expansion requirements
Tenants moving to rival properties instead of the target property
You need to be well familiar with the area to interpret this kind of information. By location and property type, respectively. This is the added value that you provide to the client or customer. A significant advantage in any presentation or sales pitch related to commercial real estate is the ability to clearly define local market awareness. You must come across as the most knowledgeable person who can solve the issue.
Due to experience
After spending several years working solely in the commercial real estate sector, I discovered that my special skill was in market knowledge and the presentation of that to the client in any official presentation. The client will be more convinced that they require your services if you are able to explain market trends and financial performance in a clear and concise manner. Combining that with your sizable and pertinent database of inquiries makes it evident to the client that they require your services.
A great commercial real estate presentation is the result of many factors working together in harmony. Items like:
Every commercial real estate presentation benefits strategically from a well-established pre-planning procedure. Real estate for commercial use is all about strategy. Planning is necessary for every property presentation.
ensuring that you are posing the appropriate questions to the client or potential client. Prepare your inquiries regarding the subject property in advance to assist the customer in considering opportunities and potential modifications.
Using your market expertise and providing thoughtful responses. Have a range of market statistics and trends at your disposal. Present them in your speech; facts are usually helpful. When the client is pressuring you to defend your strategy or your experience, you can use them as a channel to steer the conversation in the right direction. The fundamental tenet of how you market your properties must be assurance and control. You lose when the client starts to dictate the presentation.
Utilize your market knowledge to make sure the success stories you share for comparable homes are pertinent. The client will always be interested in tales about other properties.
ensuring that the link in the presentation is optimised for your specific presentation. You might be combining your use of the proposal document, the marketing document, a computer slide show, examples from your database, photos of the subject property projected on slides, and slides with photos of comparable properties.
People should always be placed at the table or in other strategic locations around the space. Where you should sit in relation to the client has been covered extensively in writing. The fundamental rule is to be close to the client as opposed to over a barrier like a table. You may hand the client the necessary papers because you are within arm’s reach. When you are not prepared for them to review the documentation, you should not give it to the client because it will divert their focus.
Make sure your proposal is straightforward yet well-planned with a clear understanding of the sale or lease results. The primary points of many commercial real estate proposal documents are lost in the excessive wording and are not clearly stated. The greatest proposals are more visual and less wordy. A commercial real estate proposal is balanced best when it contains a blend of 25% text, 25% photos, 25% graphs, and 25% white space. This turns into a paper that is easily read and comprehended.
In the proposal or presentation, provide clear visuals and photos of the subject property to break up any lengthy statements or paragraphs. This will maintain the client’s interest in your documentation.
Make sure your marketing plan is cost-effective while yet addressing the clientele that the establishment needs to draw in. We saw too many instances of generic marketing by commercial real estate agents to a more generalised market. Your conversion to a potential listing will always be aided by demonstrating to the customer that you clearly understand and will best attract the target demographic. Regarding the target market and how you want to approach it, be very explicit.
Make sure the commission rates you charge are appropriate for the area. Discounting your commission is generally not a good idea because it will make you poor and lessen or eliminate your passion for the sale or lease. The client needs to understand that the word “cheap” signifies “cheap and without focus.” The house calls for better. Because you are the greatest and perform a fantastic job, you are not inexpensive. A fair commission is always given for a successful real estate transaction.
Always offer references that pertain to the real estate transaction. The client will feel more at ease if you include pertinent history and information about satisfied consumers in your presentation.
Always impress the customer with your thorough understanding of the market as it relates to their property. This will include having in-depth knowledge of similar properties that compete with the target property. You should be able to speak intelligently about real estate costs, comparable rentals, rental growth, returns on investment, changes in the area’s projected future demographics, and properties in the nearby relevant precinct. It often helps to take a stroll through the neighbourhood right before a property presentation so that you may bring immediate and accurate images of the precinct to the discussion. This has frequently provided me with a big advantage when making presentations. Localizing the client and their cognitive processes through discussion of nearby properties.
Consider many approaches to serving the client. Relevance and innovation never fail to impress. Given the marketing opportunities and tools offered by the internet and technology in today’s industry, this is quite simple. Be proactive in your property promotion efforts so that the listing for sale or lease stands out among the others in the region in its marketing campaign. Given that electronic technology and the internet have historically been inexpensive, neither the client nor your office need pay a high price for this. The traditional techniques of advertising the property in the real estate sections of the local newspaper are becoming considerably less significant in the marketing campaign in today’s market. Most commercial real estate buyers and tenants start their market research on the internet.
Almost all real estate agencies will claim to have strong interpersonal and communication skills to aid in the process of promoting properties. From my experience, this is mostly false and the usual commercial salesperson or lease person will use regular channels of communication with the client. Put yourself in the client’s position. Even when nothing is happening or when the advertisements are receiving minimal reaction, they anticipate and demand periodic updates on the promotion of the property. When a property marketing isn’t yielding the desired results, it’s crucial to respond or adapt by offering the client alternative recommendations and tactical alterations to the promotional effort. Rarely would you start the property campaign off correctly. At this point, you should think about fine-tuning the promotion strategy to ensure that the target market is reached promptly and successfully. This requires that every property inquiry brought about by your advertising be tabulated so that you may determine which marketing channels are most successful for the particular property.
The answers and information you supply when speaking to the client or the client group in a formal property presentation must be given well and provide relevant strong property knowledge, in a rehearsed and professional delivery. Any sales or presentation materials related to the property must be appropriate, and you should be exceptionally skilled at using them. The client will not put up with informational blunders or fabrications.
There you have it, then. These are some of the essential abilities to employ in a presentation on commercial real estate. While many real estate brokers believe they are the greatest option available to market, sell, and rent commercial property, the truth is that many fail to effectively communicate with clients when it matters the most.
You must demonstrate your excellence in the first 10 minutes of your presentation if you want to be considered the greatest commercial real estate agent in your locality. By that time, the client will have formed a judgement.
Be prepared to reject any requests for discounts made by the client or consumer. Discounting is not an option in this market; they need a fantastic commercial real estate agent doing a wonderful job. When a client requests a marketing discount or a lower commission, be proud of your work and go.
Need More Assistance?
John Highman is a well-known investment real estate speaker and coach who works with brokers and agents worldwide to increase their market share in commercial real estate and close more transactions and leases. He has over 30 years of experience as a professional real estate agent that specialises in all types of commercial, industrial, and retail real estate.
John has the resources to help you and your office be successful in your market, regardless of whether you specialise in real estate sales, leasing, or investing.