Ever searched CoStar for tenants to call on?  Did it go something like this “Search submarket, 10,000 – 75,000 RSF with their lease expiring in 24 months”.  As brokers we’ve all been there and we’re all basically calling on the same tenants from the same list.  CoStar has done a lot for our industry, and a quick way to search for tenants to call on is one of them.  However, I started to realize that I needed a different list to call on in order to stand out.  So, about 2 years left in my brokerage career I turned to LinkedIn for an additional list to call from.  Have you ever tried doing a search for tenants to call on from LinkedIn?  If you haven’t, here is a quick step by step process to try it.

Step 1 – Look at the search box on the top right corner, and notice the Advanced link.  Click on it.

Step 2 – Look at all of the filters you can now search.  I’d usually do 2nd Degree Connections.  Key Words, CEO, CFO, and COO.  Also, put these in the title as well. Put your postal code in there.  Now look to the right and see company size.  50 employees plus is usually what I did for these searches.

Step 3 – See how your connected to your new found list and reach out to your common connections for an introduction.

Step 4 – Compare to your CoStar list and see if any have leasing rolling soon.

Thoughts, Comments?

Case Studies are great.  I used them in a lot of pitches, I even used them as leave behinds when I’d walk buildings.  But, don’t put too much information in there that can be used by a tenant without hiring you.  Let me tell you a little story….

Year 2 of my CRE career and I’m starting to hit my stride with my mentor and getting some deals done.  We just finished a great deal for a 7,500 RSF tenant that expanded into 10,000 RSF with 2 years left on their lease and reduce their rental rate by like 28%.  Great deal.  I put that stat in a case study with the building name, tenant name, address and suite number on the case study.  I then went to every tenant in that office park and dropped off the case study.

Well, a few days later, a tenant that I’d been calling took my case study and walked into the leasing office extremely ticked off.  Mind you, the tenant told me they didn’t need a broker because he could get a better deal on his own.  While apparently he wasn’t getting a better deal….  This tenant was negotiating an expansion with 2 years left on their lease and weren’t getting as good of a deal as my client.  So, a phone call to our President, a scolding from the leasing agent, and a ticked off President taught me not to put too much information in those case studies.  Turned out that tenant expanded from 10,000 RSF to 50,000 RSF, so I’m pretty sure I cost the owner some money…..  Lesson learned on multiple fronts.

This blog will be a very quick tip, but an important.  I heard a sales trainer tell his story about always stopping by 2 companies within the same office building or industrial park as the meeting he had with a company in that building or park.  So I tried, and it worked about 35% of the time.  Meaning that I saw the person I wanted to see about 35% of the time when I had another meeting in their building.  I just simply knew exactly which two companies I was going to call on and which individual I wanted to see.  I’d walk right up to the receptionist and say “I just got done meeting with ABC company in your building and was hoping I could meet with Mr. X for 5 minutes.”  Worked like a charm and might as well make 2 extra calls while you’re in a building.  The Rule of 2…

As a young broker I think it is a right of passage to walk door to door of an office building or industrial park making in person cold calls.  It helps you learn the buildings and tenants, and gives you local knowledge of your market.  If we’re all honest with each other…. It sucks, and not many brokers enjoy doing it.  However, it doesn’t have to suck and you can make it fun…..

I read this book Never Cold Call Again and found some very useful tips in it.  One of the tips deals with the door to door cold call and how to make it fun and effective.  The book basically suggests producing a call to action leave behind that is humorous.  The flyer needs to clearly state what you do, and how you can help.  Then throw in a little humor and the idea is that people will call you back.  Just walk up to the receptionist and ask her to please pass the flyer along to the right person.  Don’t ask for a business card or who she is giving it to, just leave the flyer and go.  Here is the one that I used.

Creative Leave Behind

I passed out about 200 of these and got 2 deals from it.  Both called me and I closed about $30,000 gross in commission from the deals.  However, I also got a call from a Landlord that wasn’t very happy about the flyer I left behind.  So you might want to make yours better / more professional than mine…

So, now that I have got my point system in place, I’m starting to set up more meeting, and go on more pitches.  I’m also making a lot more calls and getting the “how are you different than any other broker that calls me?  You’re the 5th one that has called this week!”  I had a hard time answering that question 1.5 years into my commercial real estate brokerage career.  Then a man that talks really fast walks into our Colliers Atlanta conference with an idea to stand out.  Rent to Revenue.

Ever heard of it?  I don’t even know if Mike Lipsey talks about Rent to Revenue anymore, but it worked for me on several deals.  I used it on my cold calls “Do you know what your industry’s rent to revenue is for office space?  Could I come by your office to share that with you and evaluate if you’re within industry standard?”  Worked like a charm in setting up meetings and even won my team a few pitches.  I wish I could remember the website that told you S-Corps Rent to Revenue, but I’m sure if you reach out to Mike Lipsey he could tell you.  I used it for a little over a year with some consistent success.  ”What percentage of your revenue goes to rent?  Are you in-line with your competitors on that?”  What C level person doesn’t want to know that???  Try it.  You’ll stand out!

So, I was two years out of Clemson and about to become assistant district manager of RR Donnelly.  I was selling paper and climbing up the corporate ladder.  And yes, I did have a boss that was a lot like Michael Scott from the show The Office.  He could lick an envelope and tell you the type of glue it was, and which factory produced it.  Can’t make this stuff up….  Anyway, I was doing well when I decide that I hated my job and wanted to get into the glamorous life of a Commercial Real Estate Broker.  Anybody else been there?

So, fast forward and I’ve now been in the CRE business for 6 month, I’m making no money, and I’ve had to move back in with my parents to save money.  What the heck was I thinking is going through my mind just about everyday, and I’m seriously starting to think about my next career.  When a simple, yet power, idea came into my office via a senior broker.  You really should have a point system to keep you focus everyday, but also help you celebrate the small victories.  Celebrate the small victories.  At this point, I was willing to celebrate a meeting with a 500 RSF office tenant.  So, yes, let’s celebrate the small victories.

So, I came up with a point system and a 50 point goal everyday.  I even got another young broker involved.  So many points for a call, so many points for talking to the decision marker, so many points for a meeting.  You get the picture.  The success behind the point system was that it had me focused on each day, with a goal in mind.  I was no longer focused on the fact that I wasn’t making money.  But, I was able to celebrate a job well done when I got 50 points in a day.  For the Colliers brokers that knew me during this period, I was a little obsessed with getting my 50 points.  But, it kept me focused each day, and I was able to be proud of my day’s work even if I didn’t close a deal.  Also, having another broker in your office doing it with you creates some fun competition….  Here is a great tool to help you create a point system – irunurun.com

It was a small thing, but it saved my early career in CRE.  Here is a copy of my point system:

As of the end of March 2013, Ten Eight has raised $500,000 in Seed Capital to improve our tour book app and rating system, along with create other great tools for commercial real estate brokers.  It also allowed me to quit a job that I loved, and that was being a tenant rep. office broker for almost 10 years.  So, I’m pursuing my new passion in Ten Eight, and I have some ideas to share with the CRE brokerage community.

For those CRE brokers that know me, they know that I was always trying new ideas to get in front of prospects or to close deals faster.  From the early days at Colliers where I was know as a cold calling machine, to my most recent days at SWA where 80% of all my new deals came from LinkedIn prospects.  I figure since I’m no longer a broker, I can start to share some of my experiences in trying out new things.  I tried a lot of ideas, some good, some awful and a few great.  I intend to share all of it.  So, be on the look out because I’m opening up my toolbox of experiences to share with the CRE brokerage community.  Hope you enjoy them, and find a few of them useful.