When it comes to the performance of a commercial real estate office, there are some common reasons in the industry for office success or failure. Understanding that appropriate financing of the business has to be available from the outside, the other components to be concerned with are:
- Office location – your location in the local area has to be specific for the clients that you serve
- Internet strategy – like it or not your internet strategy today has to be exceptional. Most agents have websites today, so your site has to be the best to be of any relevance in the local property market.
- Property specialty – when you specialize in a property type you have more value to the clients that you serve. Importantly your specialty has to be a viable market for you.
- Market coverage – this is always important. Your office should comprehensively cover the local area where you are positioned. As part of that you should rank yourself against your competitors and track that ratio over time.
- Marketing tools and promotional material – marketing tools are today very sophisticated. The sales staff should have a good variety of tools and brochures to use in any promotional situation.
- Branding of the office – this is the colors and the message that you want the market to know your for. It has to be clear and precise; you should saturate the area with your signboards as part of this process.
- Competitors in the market – identify these groups and track their market penetration. This can be done through signboard counts, internet lists, and newspaper advertisements.
- Time on market – within your property type or specialty make sure that you know just what is going on with the time that listings stay on the market.
- Pricing and rental trends – monitor the market results here. Know what sells or returns and why. Know what remains on the market and why.
- Pricing and commission strategies – your strategies here should be appropriate and relevant to the local property owners and tenants.
- Prevailing local and regional economy and demographics – watch what happens with the local region with regard to population and business activity.
- Zoning and infrastructure changes – when transport, highways, roads or zoning of property change, it creates shifts in property activity. Watch the signs of change and monitor the local planning office or council accordingly.
- Territory management – define your territory and work hard to build your profile within it. Ultimate targets should be to dominate your territory with your target market.
Whether the property market is good or bad, some simple staff rules should be followed at all times to keep the agency successful.