In commercial real estate sales and leasing, it is essential that you track your ratios on a daily or weekly and monthly basis. In this way you can see how things are improving and where you need to adjust your activities.
These are some of the important commercial real estate ratios to monitor:
Your prospecting activities are the foundation of your business. On that basis your daily prospecting processes should be tracked. That will mean the number of outbound calls to new people, and the number of face to face meetings you create from those outbound calls. Typically a good agent will be making approximately 50 calls in 2 or 3 hours. They will not be connecting to all of those people; however they should be reaching approximately 15 to 20 people of relevance in that call time. From those connections, they should be creating approximately two meetings per day with new people or prospects. The success rate will be strengthened when you do the right research in preparation for the calls. Research should be done the night before. The prospecting calls should occur on a daily basis at the same time.
From those outbound calls, you should track the number of meetings created with new potential prospects. Some of those meetings will build opportunity over the longer term, and on that basis the prospect information should be entered into your database. Track your database growth.
From your meetings generated from the outbound calls, you should be creating at least one new listing per week on an exclusive basis. Open listings really do not count when it comes to ratios and market share. Your dominant market share is driven from exclusive listings and your conversion of them. When it comes to presenting and pitching for new listings, your conversion factor should be greater than 50% and with some experience be at least 75%.
From your exclusive listings you should be creating a conversion factor to completed contracts or leases of at least 75%. That ratio of only applies to exclusive listings and recognizes that the marketing effort behind exclusive listings is high and direct for a lengthy period of time. A top agent will only focus on exclusive listings. Exclusive listings are typically for terms of at least 4 months and longer depending on the property and the client.
Build an awareness of the number of listings in your local territory with all other agents. This ratio should be compared to your current listing bank. As you watch the activity of other agents, track their time on market and success factors related to each listing.
The time on market factors should always be tracked given that they are a good indicator of current property enquiry and market sentiment. The time on market factors as they relate to your listings should be compared to the listings of your competitors.
Track the average commission you are making per transaction in both sales and leasing. This ratio will give you an understanding Real Estate Facilities Manager Job Description of where you can improve your listing quality and hence your income. Bigger deals mean more commission.
Monitor your clients for their value to you in repeat and referral business. Clients that own extensive and varied portfolio property should be high on your repeat contact list. They should feature as ‘A’ grade contacts in your database.
All of these factors will give you an understanding of where your market is right now and how you can take it forward with some improvement. You can increase the number of clients that you work Real Estate Marketing Ideas 2019 for, improve the property types that you work on, and seek repeat business from your existing client base. That is why ratios are so important to your ongoing commercial real estate career.