Commercial Real Estate - The Sales And Commission Ratios That Matter

Your ultimate goal when you own a commercial realty office is to make a lot of commissions so that you can reap the rewards of being able to succeed in the business. While you could look at the commissions in terms of the total number of listings and the commissions for the entire office, it is important to consider the commissions as a salesperson and listing basis.

You should keep track of the commissions per listing and salesperson. This will allow you to see the quality and size of each listing that each salesperson works with. It is very different to make a saleperson who is making an average of $5,000 per transaction, versus someone who is making $15,000 per transaction. It's easy to determine who needs support and who needs encouragement.

You should aim to increase the quality Commercial Real Estate Agency and size your listings for every salesperson, so that the deals are getting done are growing. Splitting your commissions by salesperson and transaction will quickly show you the quality of each listing.

Here are some additional ideas for tracking sales and commissions within a commercial real-estate agency.

1. Be aware of the selling times throughout the year to plan for slower times. Most cases, the slowdown occurs between December and July. This leaves you with 10 months to grow your business and market share.

2. Each salesperson should be assessed and assigned to one of three levels. These groups include New Recruits and Improvers as well as High Performers. Each team will require coaching and encouragement in a different way.

3. You will need to establish clear benchmarks for the best levels of listing business if your real estate office is involved with sales and leasing. Ask the right questions about the local commissions and transaction levels you desire and where they will be coming from. You should have clear goals regarding the quality of your client's property. Do not be the agent who cannot sell or lease. Do you accept any listing simply because a client contacts you? You should be selective in your listings, I believe.

4. To encourage and move them forward, meet with each team on a weekly basis. You can also see potential problems earlier so that you can concentrate on the people who are most affected.

Commercial real estate sales and leases are possible in any market. To support long-term relationships with clients, you can also add professional property management.