Truly exemplary commercial real estate brokers can be sales or leasing brokers specializing in everything from parcels of raw land to CBD office buildings. While their businesses might be different, they all share common business practices. They also avoid making these five fundamental mistakes.
Letting the Hopper Empty
When you get busy with commercial real estate deals, it can be easy to let the work you have to do on them distract you from the crucial business development activity that will keep you busy for the future. Exemplary brokers are very aware of this and always make time to build their pipelines. Whether they are cold calling, keeping up relationships or tending to a lead generating team or system, leading brokers always have new opportunities filling their sales hoppers so that they can continue earning and growing.
Ceding Their Knowledge Advantage
While brokerage is a relationship business, exemplary brokers know that the relationships turn into transactions based on information. Knowledge solidifies ties to clients, makes pricing more accurate and enables brokers to find the right spaces for their tenants (or to set the right rents for their landlords).
The best commercial real estate brokers have a knowledge advantage because they are truly experts in their markets. Along with this advantage, though, comes with the realization that they can’t know everything. This means that when they get an opportunity outside of their comfort zone, they don’t make the mistake of working it by themselves. Instead, they bring in another expert to give them and their client the knowledge they need to successfully consummate the deal.
Avoiding Tough Conversations
The best commercial real estate brokers don’t shy away from tough conversations and situations. They aren’t afraid to ask tough questions of clients as a part of assessing that client’s desire to do a transaction and as a part of figuring out what the client really needs. At the same time, they also don’t hide behind emails or assistants when a problem comes up. Instead, exemplary brokers get on the phone or get in their cars and work the situation out with their clients.
Going it Alone
Successful brokers know what their time is worth. With this knowledge, they build teams that allow lower-cost people to do their lower-value work, freeing them up to do more of what they do best. This approach may cost these leaders a little bit of money, but it gives them the time to make a whole lot more of it.
Failing to Engage
Finally, leaders in our industry are who they are because they are leaders. What this means is that they don’t make the mistake of just doing their jobs and servicing their clients and prospects. Instead, they are fully engaged with the commercial real estate industry, with their companies and with their communities. Having these ties isn’t only the right thing to do. It’s also the smart thing to do, since it puts them in position for referrals and increases their credibility and visibility, making it easier to develop new business.