When you work in commercial real estate you will be up against some proven performers in listing, negotiating, and closing. The industry is built on a base of business and investment. The landlords, business owners, tenants, and investors know what they want and will drive a tough bargain. This then says that the average commercial property agent cannot be ‘average’ when it comes to negotiation. They have to hone and develop their personal negotiation skills and abilities.
To be really good in the industry you should build a level of confidence from a system of market knowledge and property strategies. You have to show that you really know what it going on and how to control it. This is what I would expect from a very good agent:
- Excellent market knowledge of local listings, prices, rents, and property types.
- Sound and proven strategies of marketing when it comes to the different property types and the needs of selling or leasing as the case may be
- The ability to negotiate difficult deals with difficult people using third party evidence of prices and rents to support momentum
- Knowledge and accuracy when it comes to documenting every step of the deal into correct and legal documentation that accurately reflects the intentions of the parties.
- Inspection processes that feature the property in its best aspect when taking qualified prospects into and around the premises
- Negotiation skills for taking the property transaction through to contract or lease finality for the client
- The ability to follow through on all the terms and conditions of the deal to ensure that all parties are acting towards completing the transaction as intended.
- A database of leads and opportunities that is accurate and up to date so it can be used on new listings or new opportunities as they arise.
These are all quite specific skills that will help the client get the best outcome from the property sale or lease in the shortest possible time. All of these processes can be improved and practiced personally as a package of services to the clients that we act for.
Central to all of these points is the fact of negotiation. Negotiation appears in just about everything we do as agents today. The fact is that the best negotiators complete more listings and convert more deals on a regular basis. Negotiation skills can be learned and improved through:
- Constant daily negotiation practice with other members of your team
- Applying market knowledge as third party proof that your case or argument should be considered
- Documenting all discussions and stages of the negotiation so no errors or omissions occur to threaten the deal.
- Understand the real position of the parties and the ‘must have’ requirements or outcomes for them.
- Understanding the ‘best alternative to no agreement’ in the case of both parties, so you know the ultimate downside if they do not agree.
The best property negotiators know the opportunity of the market and can show the clients how to reach it with minimal discomfort. Develop your negotiation powers in commercial or retail property through regular practice and up to date information.