Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/128835
more qualifed as a lead they are for you. A prospect with the frst couple of attributes is worth talking to, but a prospect that will take your guidance is practically a guaranteed client. Formulating Your Pitch Once you've identified your prospects, research what would interest them. Tis last step is ofen forgotten. Determining a prospect's issues gives you a good reason to call and move the relationship forward. Learning about them, their companies, and their real estate needs can help you to have a more pointed conversation that is more likely to lead to a face-to-face meeting. Two popular research sources for company information are Hoover's and LexisNexis. Hoover's "First Research" product provides good insight and suggested ques- tions for key decision makers. For more direct research, leveraging an online assistant such as Elance or Guru allows you to delegate your research activities. In looking for discussion topics, don't focus on the usual transactional indicators such as lease expirations. Pay attention to bigger business issues. Tis is the No. 1 mistake brokers make — focusing too much on lease terms and too little on the business issues. Business issues drive real estate decisions. Real estate issues generally don't drive business decisions. For example, if you learn that a company has just acquired a competitor, you can assume its space needs will probably change and it will need brokerage services, regardless of whether or not its leases are scheduled to roll over. If, for some reason you can't fnd a specifc topic in your research, call for other substantive reasons. Tese may include: • a recent lease or sale that you successfully completed at a nearby or related property; • a listing of yours that is of interest to the prospect; or • a shared social networking connection with the prospect, such as being a member of the same LinkedIn Group. While engaged in a discussion with the prospect, focus on the CCIM STRATEGIES FOR MAKING CONTACT Phone calls aren't the only way to prospect. Many real estate professionals also have success leveraging the power of the CCIM designation and CCIM networking opportunities. "Referrals are the absolute best way to connect with others," says Lee Y. Wheeler III, CCIM, president of NAI Wheeler in Beaumont, Texas. He utilizes contacts made through social media, local networking, and past clients to gain personal introductions to potential new clients. "The CCIM designation alone helps tremendously as it adds credibility to anything I do," he says. "And by educating those who refer me on what CCIM means, it allows them to refer me better." "I use the events sponsored by my local CCIM chapter to engage with many different decision makers," says Ira Korn, CCIM, managing director and partner at Coldwell Banker Commercial Meridian in Rochester, N.Y. "I find that people are generally more relaxed and open to making new acquaintances." Attendees are also a great source of market information, he adds. "Recently I explored the purchase of a value-add opportunity located near a new development done by a CCIM. Our conversation gave me a better grasp of the marketplace and local politics, and allowed me to more accurately value this particular asset." Derek J. Doke, CCIM, agrees. "There isn't anything better than a good face-to-face networking event," says the managing broker and senior asset manager at Barclay's Realty & Management Co. in Kirkland, Wash. After meeting a fellow Washington State CCIM Chapter member at a chapter-sponsored deal-making session, "we negotiated a $1.4 million land transaction within 30 days that closed shortly thereafter." Doke also makes a point to connect with decision makers outside of commercial real estate. "It's important to get out from behind your desk and mingle with other professionals. I receive leads from doctors, accountants, financial advisers, teachers, fellow tennis players, and a host of others," he says. He leverages his past experience as a former international tax specialist not only to make connections, but also to educate and instill confidence in clients, something that many CCIMs can do, given their depth of experience. "Most if not all CCIMs bring much to the table aside from their CCIM credentials," he says. — Sara Drummond, executive editor of Commercial Investment Real Estate 36 May | June | 2013 Commercial Investment Real Estate