When it comes to the success of a commercial real estate office, the only way to get there is through establishing performance standards for the team. As part of that process, it is important to recognise the differences in performance for each person when it comes to experience, property type, and stock availability.
There is also a significant difference between commissions that can be achieved in sales and leasing on an area by area basis. That being said, every salesperson should be optimized for the existing property market and the levels of current enquiry. That is the job of the team leader.
When you look at the average working year, there are peaks and troughs of activity. In many cases, seasonal factors and holiday times will impact your listing activity and enquiries. When you add to that the sentiment associated with the economy, there are quite some challenges to deal with. For this very reason, you need to track performance benchmarks for not only each salesperson but also the office.
Here are some clear standards that will help you with administering team performance.
- Prospecting calls should be made on a daily basis for approximately 2 or 3 hours. This can be an enormous challenge for some salespeople. For those that can work to the task and get the results will be the best performing salespeople in the office. Track the number of calls that are made by each salesperson on a daily and weekly basis. Observe their time in the office to make sure that the calls are really occurring.
- It directly follows that prospecting calls should lead to meetings with prospects. Some of those meetings will create listings in the immediate sense, while other meetings will allow ongoing relationships to grow and nurture. All members of the sales team should report on a weekly basis with regard to the meetings created and listings converted.
- When it comes to a successful commercial real estate office, the quality of the listings will have a lot to do with the conversions of sales and leasing opportunity. Difficult listings and low grade property will create very little by way of enquiry. All salespeople should be encouraged to seek out the better quality listings at every opportunity. This means contacting the local property owners directly together with the proprietors of the local successful major businesses.
- Look for trends in the local property market when it comes to time on market. Your real estate office should be equal to or better than the competing agents in the local area when it comes to the time on market for each listing. Success breeds success when it comes to property listings. Every successful deal should be actively promoted into the local community of businesses and property owners. Success letters and success brochures are good strategies to use in this regard.
When the property market slows or becomes tougher, is time to take a serious look at the activities of each salesperson and the results that they are achieving. Monitor the commissions for each salesperson on a deal by deal basis. Look for the quality listings and the quality commissions that they are bringing in.
Any high priced listings that are long-term dreams or experiments for their property owners are really not short-term opportunities for commercial agents and realtors. List your properties selectively with due regard to quality and enquiry generation.