When you work in commercial real estate sales and leasing, it is essential to track your numbers and results in the local area. In only that way will you know your challenge and see your success. These numbers will also help you identify the changes in the commercial property industry locally that should be merged into your prospecting and listing program.
Commercial real estate is all about monitoring numbers, trends, and people. Add to that the reason for people to deal with you and you have a formula for building your local market share.
So what numbers should you monitor? Here are a few ideas to help you optimize your local territory property knowledge and understanding.
- The number of listings available in the local area at any one time will have to be tracked. To achieve those numbers, it is necessary to monitor the signboards placed on properties together with the numbers of lists on the Internet. Add to that the adverts from the local newspaper and you will have some meaningful listing results to monitor. Exactly what is coming on the market now, and what type of property attracts the most inquires?
- Every day and every week you should track the number of listings that are being sold or leased and the results they achieved. This is harder to do given that some of those listings are with other agencies. The confidential nature of property transaction makes it difficult to understand the final terms and conditions of the end result sale or lease. Potentially the final details of the property transaction are likely to be known and on that basis they will be comparable evidence for future property listings.
- The level of commercial real estate inquiry each day and each week will trend into a pattern. You will find that there are busier days during the week for inbound inquiry to you and your property office. Usually that higher level of activity will be the period between Wednesday and Friday. Other patterns will also emerge such as the impact of public holidays. This information allows you to choose the best days to advertise and promote properties for sale or lease.
- The time on market relating to the lease transaction and the sales transaction will always be relevant. You can also split these numbers into the types of properties and the location. Given that the current property market is generally impacted by the availability of finance and the national economic sentiment, these numbers will be very important when it comes to the ideal listing time and the duration of the average listing.
- The asking prices and the asking rentals are relative to each listing and will give you benchmarks to work within when it comes to property inspections and listing presentations. The owners of properties need to understand what they're up against.
- The location of comparable properties in the local area will have implication on the marketing campaign for each property you list. Those comparable properties will have prices, incentives, marketing strategies, improvements, and locations that can be influential in and against the marketing of any other property nearby.
These key numbers will give you evidence and information that helps the listing of a property. The more that you know about these things more attractive the listing can be in its structure and strategy.