How to Do a Sales Pitch in Commercial Real Estate

In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller. Don Mcclain lives in Austin, Texas has been involved in commercial real estate finance for over 25 years, and is a solution provider. In his free time, Don Mcclain enjoys boating, training, journeying, and spending time with his three children.

Get to the core issues

Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well-structured proposal that addresses the needs of the customer or client.

It's all about THEM, not YOU!

When you design an investment or commercial property proposal for presentation, the document should be 90% regarding the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regarded by the agency and the personnel.

Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property? In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.

They are Experienced

It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well-selected questions which allow the agent to interpret the body language coming from the client's response.

When you believe you have identified the element of clients' pain related to the property transaction, you start to magnify the problem in terms of today's market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today's market centers on financial matters such as:

• High vacancy factors
• Other property choices and chances are available
• Underperforming leases
• Unstable cash flow
• Unstable tenancy mix
• Tenanted conflict
• Escalating building operating costs
• A shift in demographics exposes the property to an unstable future
• Mortgage payment pressures
• Age of the asset
• Needs for refurbishment or extension
• Competition properties attract tenants away from the subject property

This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.

From Experience

After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of inquiries clearly shows the client that they need you.