CRE Brokerage Firms: Should You Stay Independent?

Posted on January 26, 2016 by SVN

Independent vs. National Commercial Real Estate Firms

“To be, or not to be, that is the question…” goes the famous opening line of an act from the Shakespeare play, Hamlet.

That very same question is what a lot of CRE Principals ask themselves every day. “To Be Independent or not to Be Independent… and Be with a National Firm.”

The decision is not an easy one, especially for an Independent who may feel as though his/her niche in the marketplace would be disruptive to current business if they were to align themselves with a national platform.

If you’re someone who wants to buy and sell for their own gain and possible syndication, well, a national platform may not be the choice for you. However, if you are an independent CRE brokerage or property management firm that wants to step up their game and compete with the national players, then looking at a national platform definitely behooves you to take a little time to gather information so you can make a knowledgeable decision.

5 Factors to Consider When It Comes to Independent vs. National Firms

Let’s first consider the information that would allow you and your firm to make that informed decision:

Technology: I know, I know. It’s always changing and it’s one of the biggest expenses an independent firm incurs. If not in hardware and software, in people or outside services. A few questions to ask are: “Does this national platform have the technology I will need today and position me for future growth without a seismic shift in how I do business or in training? Is it cloud-based or on premise technology? Will the firm help train, accelerate my transition to its platform? Is what I currently have working?”
Financial: As Bill Clinton once said, “It’s about the economy, stupid.” Well, in our business some would argue it’s “Show me the money!” A few things to consider: “Do I see how this move to a national firm would enhance my bottom line? Will it allow me to reduce marketing expenses or greatly enhance my marketing efforts? Is my market demanding or is it asking for more of a national presence to be competitive? How can it help me with existing and new relationships? Can it help me do more deals? Can it help me recruit and retain top talent? And last but not least, what are the commission splits and what are the fees?”
Personal: What will ultimately suit my business, my people, my family and my clients? What do the next 3-5 years look like in my business?
Intangibles: What are the Unknown Unknowns? I like to call them the “unk unks.” To get this perspective, it is very important to talk to the current principals of the national platform you are considering and get a mix of their experience. Do your due diligence and spend a little time with principals who have been affiliated from 1 year to 5 years with the national platform you are considering. This is imperative before making your final decision. This will allow you to see what the “real deal’ is without all the marketing hype. “Looking under the hood to make sure there is an engine there” is necessary before your final decision.
Why not you, why not now? – Only you have that answer…

Brand Identity and SVN® Commercial Real Estate Advisors

Last week I was asked by a prospective SVN principal: “I am concerned my brand identity will be compromised and I will lose the local flair with a national platform. What should I do about my brand?” My response: “I don’t know about that, we can talk about it; however what I do know is what I hear from owners of independent firms who were asking the same questions before they joined forces with SVN…”

Here’s how SVN can address the Independent vs. National Firm concern, from the words of various members of the SVN community:

“With a national platform, we now harness the power of one of the industry’s 6th most-recognized names with the expanded reach of an international network of over 1,300 Advisors in over 500 markets. The brand has definitely given my firm the opportunity to grow my business and client base. I now sit at the table to compete with the other nationals in my market.”

“We now have unlimited access to industry leading-edge commercial real estate tools and technology that helps maximize our clients’ returns and saves us time and money.”

“We now have expanded visibility and marketing to reach the widest possible investor audience and access to a broader array of asset classes and so much more as part of a global network. It is the SVN Advisors that make up the difference…this is a global network where each person is committed to putting their clients’ interests first.”

If you are looking to “step up your game” – now is the time to gain information to help you make a knowledgeable decision so you are ready for growth in 2016. The best of luck to you with your “to be or not to be” decision!

Read more about Karen Hurd here.

[bctt tweet=”If you’re looking to step up your game – now is the time to gain information to help you make a knowledgeable decision so you are ready for growth in 2016! #CRE”]

The Benefit of Listing Commercial Real Estate Properties

Posted on July 24, 2015 by SVN

What’s the Benefit of Listing Commercial Real Estate Properties?

Let me start with some full disclosure… Every commercial real estate transaction that I have done was at a large, national real estate brokerage. The firm I worked with emphasized the value of listing commercial real estate properties and generally did an excellent job of adding value to its clients. So I’m biased, but for a good reason.

When they’re done the right way, commercial real estate listings work.

That being said, if you’re hiring a Broker that’s just going to talk to the same “usual suspects” then put your deal on LoopNet, I would say do it yourself. LoopNet memberships are cheap, and the “usual suspects” will take your call if you have a deal to sell them. Really. I promise.

So what’s so great about a well-executed commercial real estate listing? Here are a few things to keep in mind.

The Value of Listing Commercial Real Estate Properties with a Broker

A professional CRE Broker will value your property and tell you where it will sell. You might not like it, but it will be the truth. Actually, make sure it is the truth. Ask him what his average list price to closing price ratio is. Mine was 99% way back when.

If only the “usual suspects” see the listing, they’ll usually low ball you.

Good commercial Brokers track people in 1031 exchanges. If yours does, she should be able to get you good offers from great buyers.

There are lots of buyers that don’t do a lot of deals but, when they do, they pay good prices. They typically aren’t on the internet a lot and aren’t well-known enough to be in your database, unless you’re very active. A commercial real estate Broker with a good database should know them, though. Listing with THAT Broker will give you access to THOSE buyers.

A listing Broker will do a lot of work for you. They can run tours, coordinate advertising, and even do walk-throughs, letting you not only maintain a buffer from the buyer, but also save time.

Listing your property shouldn’t cost you much. When a buyer brings you an offer through a Broker, you’re either going to pay that Broker, or the buyer’s going to lower her offer to pay the Broker. If you have a Broker, you know what you’re paying and he/she takes care of paying the other Broker.

Ready to list your property? Find your nearest Sperry Van Ness® Advisor, who will always bring value to your commercial real estate listing, by searching our directory here.

Broker Boot Camp | 4 Traits of a CRE Brokerage Superstar

Posted on June 29, 2015 by SVN

Do You Have What It Takes to Be a Brokerage Superstar?

Having attended the Sperry Van Ness® Broker Boot Camp in Chicago three weeks ago, I now know a little bit about what it takes to “make it” in the commercial real estate brokerage business. Full disclosure: I’m a marketing intern, so my experience as a broker is non-existent. However, since I had the opportunity to sit in on the first day of the Boot Camp, led by industry veteran John McDermott, I now have a pretty good idea of some of the qualities that differentiate a brokerage “superstar” from the rest.

To be clear, even being just a “good” broker isn’t as easy as you may think. (See my first Boot Camp blog post for some elaboration). To be a “superstar” in any field you need to set measurable goals, as my second Boot Camp blog post discussed. But for commercial real estate brokerage in particular, you must possess 4 specific traits to become a top performer.

The Intern’s Take on the 4 Traits of a Brokerage Superstar

1. You must be tenacious. As a broker, there are few times when it’s acceptable to simply take “no” for an answer. Brokerage superstars are relentless — when appropriate, they prod further with clients who seem to be shutting them down. Instead of calling it a day, a brokerage superstar asks questions when she is slammed with a “no.” For example, rather than ending the conversation when a potential client says he has no interest in giving you an exclusive listing, ask what his reservations are and listen to his response.

2. You must be a self-starter. As I already mentioned, brokerage isn’t easy. Perhaps the hardest part of commercial real estate brokerage is starting out as a brand-new broker. A budding brokerage superstar will jump on the opportunity as soon as she is hired by a brokerage firm by immediately starting to build her database, accumulate contacts, and practice key skills. This brokerage superstar doesn’t wait to receive help or direction. Instead, she takes initiative by doing everything in her power to succeed from the Day 1.

3. You must be self-motivated. From what I understand, brokerage can be a lonely business at times, because it is ultimately up to you as a broker to close your deals and earn paychecks. While it seems scary (in my opinion) to be relying only on commission for your income, a brokerage superstar sees this as an advantage. A brokerage superstar is fearless and confident in her own abilities to bring home the bacon, and doesn’t need outside motivation to stay fired up.

4. You must be able to make connections with the right people. This doesn’t mean you can just say “oh, I’m a social butterfly!” and spend your week chatting with your friends. A brokerage superstar doesn’t just work the room — she works the room with a purpose. She goes out of her way to introduce herself to industry leaders and research the local movers and shakers. Following any meeting or casual encounter, a brokerage superstar takes notes and catalogues this experience for future reference. As a broker, your business is built on knowing the right people, so you must be professional, likeable, and strategic in order to make worthwhile connections.

If you think you have what it takes to be a brokerage superstar, visit our Careers page by clicking here.

To learn more about the SVN Broker Boot Camp, click here.

How to Effectively Market Properties

Posted on June 23, 2015 by SVN

The Two Things You Must Do to Effectively Market Properties

2015 is well underway. You clients should be back in the swing of things, which means that you are doing more proposals and taking more exclusive listings. Great!

Now, it’s time to get those listings sold, and to turn them into paychecks. In order to get them closed, you need to market. Here’s the two things you have to do in order to effectively market your properties:

Call every buyer you should know.
Work the entire brokerage community to get them to do #1.

Let’s get down to the details because it’s important to completely do both steps if you want to increase your closing rate.

Call Every Buyer You Should Know

There’s an extra word in this heading – should – but it’s there for a good reason. Right now, most Brokers (and possibly a few SVN® Advisors), get a listing and immediately call their top buyers. Some even call a few more. What most brokers don’t do is to call every possible buyer that they can reasonably find.

I’m not talking about finding every possible buyer in the country – we’ll cover that in the next paragraph. I’m talking about calling the person two blocks down the street that no one else calls, but that buys a building once every 25 years. If you cover them, you’ll get access to qualified buyers that no one else will touch. And, really, isn’t that what your client is paying you to do?

Work the Entire Brokerage Community

In addition to doing your best to find buyers that no one else can find, it’s also your job to make sure that every Broker in the country finds the buyers that you can’t find. That way, your best pool competes with everyone else’s likely pools to find the best possible offer for your seller.

Syndication through our online marketing tools and through electronic mail blasts are also a part of the process, but they’re only a small part.

If you want to know what you can do to energize both the SVN community and the rest of the industry, take a look at the attached infographic. It’s a how-to of everything you need to do to get your deals sold. In fact, don’t just look at it. Print it out, tape it to your wall, and keep it handy to remind you how to get ALL of your listings sold.

To learn more about the Sperry Van Ness® marketing systems and tools, click here.

Choosing a Commercial Real Estate Advisor: What to Look for Beyond Experience

Posted on June 4, 2015 by SVN

When you start looking for a commercial real estate advisor, everyone will tell you to work with an extremely experienced person. Many of the names that you get as referrals will be some of your community’s leading brokers. They are extremely skilled and extremely busy.

The Truth About The “Best” Commercial Real Estate Advisors

While it may seem like commercial real estate advisors are everywhere, the fact is that when you get to the top echelon of advisors, there are very few of them and they are in a great deal of demand. Because of this, many of them are very selective with how they spend their time. Their time management skills are one of the reasons that they are so successful.

If you have a very large transaction, they will give it a great deal of attention and, in most cases, do an excellent job for you. However, if your transaction is small they will probably hand it off to a junior member of their team. When you gauge the size of what you are offering them, bear in mind that what you think is a large transaction is likely a small transaction for them.

Another Option

Work with an established firm like your local Sperry Van Ness® office, and if you can’t engage a senior commercial real estate broker, find a junior advisor who may lack in years in the business, but does not lack in tools, resources and initiative. Note that in commercial real estate, the term “junior” doesn’t necessarily refer to the age of the broker or advisor, but more likely the years in the industry. Many of our own top SVN advisors already had successful careers in completely different industries. Why work with a less experienced advisor? First of all, most established firms are relatively selective about who they recruit, so the odds are that you’ll get someone pretty good. Second of all, that advisor should be desperate to do a good job so that they can build their resume. They will give your deal much more attention than a more experienced advisor will. (We note this also works when selecting attorneys!)

At this point, you’re probably asking “What if they’re incompetent?” Here’s the beautiful thing about young advisors at good firms: they aren’t left alone. When you work with them, they will typically have a senior advisor or an experienced manager watching everything you do. This gives you the benefit of working with a top-of-the-line senior advisor while also giving you a very high level of personal service.

Working hard is what I did for my clients when I was a young advisor, and providing expert oversight is what I did for my advisors’ clients when I was a senior advisor and broker/manager. Now you can take advantage of this trick!

What types of commercial real estate advisors do you like to work with? Please tell us below!

The Sperry Van Ness® team is committed to always putting the client first. Visit our advisor directory to find your nearest Sperry Van Ness Commercial Real Estate Advisor®.

How to Choose a Commercial Real Estate Broker

Posted on September 26, 2014 by SVN

Looking for a CRE broker who will give you both the time and positive experience that you need? Start your search by narrowing your options to established national firms. Once you’ve selected a reputable firm, don’t shy away from choosing a junior commercial real estate agent with slightly less experience and knowhow.

This may sound counterintuitive, but choosing a junior broker could be the best decision for you. For one, most established firms are selective in who they recruit, so you have pretty strong odds of finding a good broker, regardless of experience level. Secondly, the junior broker that you work with will be driven to make a good impression so that they can build their resume. Both of these factors will contribute to a broker who will give your transaction much more attention than a more experienced agent would.

At this point, you may be asking, “Well, what if they’re incompetent?” Even if you get a bad draw and end up with a mediocre junior broker, there is still a silver lining: they aren’t working alone. At any good firm, these junior brokers will have a senior agent or a more experienced manager overseeing their work. This means that you get the benefit of working with an experienced senior agent, while also getting a high level of personalized service.

I worked hard for my clients as a young agent, and as I grew into a senior agent and manager, I provided expert advice to my junior brokers and their clients. These clients greatly benefited from the time my junior brokers were able to dedicate to them, as well as the insight and knowledge of our senior staff. Now you can take advantage of this approach!

Tag: Broker