Observations About Commercial Real Estate Office Performance – Part 2

When you consider the operational factors in running your real estate office, the staff strategies you adopt are make or break to market share and business opportunities. Here are the main ones to consider: Sales Staff should be well selected. Proven performers are preferred but are sometimes hard to find, and the 'ego or cost…

When you consider the operational factors in running your real estate office, the staff strategies you adopt are make or break to market share and business opportunities. Here are the main ones to consider:

  1. Sales Staff should be well selected. Proven performers are preferred but are sometimes hard to find, and the 'ego or cost factor' may deter many managers from taking on the most successful of these. That means you will need to have some staff growth plan and skill strategy for improving your more junior sales staff and move them through the ranks. The success of sales staff stems from their business character and work ethic. If they are hardworking, knowledgeable, and good communicators, they are likely to have a future in sales, although training and results are part of the performance equation.
  2. Tracking each individual salesperson is fundamental to the office cash flow and commission process. A debt credit system of salary and commissions allows the salesperson to show their success and get paid for it. It is important to set cut off levels on the debt level to allow the underperformers to be moved on; there is no point for either party in prolonging the employment of underperformers. If a salesperson can not show market success and momentum in 3 to 4 months then termination of employment should be considered.
  3. Commission only salespeople may be an alternative to use in sales staff employment strategies but your local HR rules and industry employment standards should be adhered to. Check these rules based on your industry, country, and location.
  4. Administration personnel are the backbone of the office and the tool to help the momentum and success of the sales staff. Diligent and hardworking administration people will keep the sales team effective and accurate in listing, marketing, and follow-up. It is normal in a successful and well run commercial real estate office to have a ratio of 3 or 4 salespeople per full time administration support.
  5. The success of a real estate office stems from salespeople that are really good at self-promotion, office promotion, knowledge of the local area, specializing in a property type or location, presenting, listing, inspecting, negotiating, and closing. Some salespeople need help with parts of this list. Training and skill development will help the process.
  6. The database in the office is the most important tool to help the business and the sales team with their success. Every sales person should have a requirement in their job specification to utilize and grow the database. Any salesperson that does not commit to the office database integrity and growth should not be employed long term; they are of little value to the business overall.

The success of your business centers on its people and how they perform their required tasks. A great real estate office is a mixture of successful salespeople, property managers, and administration people. Leadership then has something to work with.

When it comes to making a real estate office thrive in tough times, the manager and the team should be controlled and focused on taking the right actions and chasing results. These two factors are intertwined and will move the office forward.