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2005 Fall Professional Conference

Tenant Rep Forum Saturday, November 5, 2005 The Politics of Commissions: Getting Hired, Getting Paid Andrew B. Zezas, SIOR REAL ESTATE STRATEGIES CORPORATION NEW JERSEY. 2005 Fall Professional Conference.

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2005 Fall Professional Conference

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  1. Tenant Rep ForumSaturday, November 5, 2005 The Politics of Commissions: Getting Hired, Getting Paid Andrew B. Zezas, SIOR REAL ESTATE STRATEGIES CORPORATION NEW JERSEY 2005 Fall Professional Conference

  2. How many of you would like to do more tenant rep business, or do better for your clients?

  3. How many of you know everything about tenant representation?

  4. Tenant Rep ForumSaturday, November 5, 2005 The Politics of Commissions: Getting Hired, Getting Paid Andrew B. Zezas, SIOR REAL ESTATE STRATEGIES CORPORATION NEW JERSEY 2005 Fall Professional Conference

  5. Andrew B. Zezas, SIOR • President & CEO - Real Estate Strategies Corporation • 22 years in corporate real estate, 3 years in SIOR • Experience in office, industrial, technology, landlord, tenant, and advisory services • Former Senior Managing Director for international real estate brokerage company • SIOR Tenant Rep Specialty Practice Board Chairman • Advisor, publisher, author, leader, learner • NAIOP Creative Deal of the Year Award • William Dorsey Client Service Excellence Award • Ernst & Young Entrepreneur of the Year Finalist • “The best time to plant a tree was twenty years ago…the second best time is today” Chinese Proverb

  6. Andrew B. Zezas, SIOR • President & CEO - Real Estate Strategies Corporation • 22 years in corporate real estate, 3 years in SIOR • Experience in office, industrial, technology, landlord, tenant, and advisory services • Former Senior Managing Director for international real estate brokerage company • SIOR Tenant Rep Specialty Practice Board Chairman • Advisor, publisher, author, leader, learner • NAIOP Creative Deal of the Year Award • William Dorsey Client Service Excellence Award • Ernst & Young Entrepreneur of the Year Finalist • “The best time to plant a tree was twenty years ago…the second best time is today” Chinese Proverb

  7. Brian Netzky, SIOR • Boutique Industrial Tenant Rep firm • Industrial users are entitled to expert representation • Specialize in clients that lease 100,000sf and up • 100% Exclusive Rights to Represent; 100% Commission agreements • Earn full fees on renewals • Utilize SIOR network to provide ‘Best in Class” service across the U.S. 10

  8. Steve Morris, SIOR • Active in commercial brokerage since 1975 • Founded Strategis in 1982 • Founding partner in GVA Worldwide • Provides in-depth, multi-service processes • Consulting and transaction experience –office, technology, research, education • MBA Program instructor at University of Michigan • Teaches real estate finance for CoreNet MCRE Program • 2000 Broker of the Year – University of Michigan / Urban Land Institute Real Estate Forum 11

  9. Tenant Rep Zoomerang

  10. Tenant Rep Zoomerang

  11. Tenant Rep Zoomerang

  12. Tenant Rep Zoomerang

  13. Tenant Rep Zoomerang

  14. Tenant Rep Zoomerang

  15. What We’ll Discuss Today • 8 Steps to Getting Hired More Often • 5 Key Parts of the Tenant Rep Agreement • 6 Most Critical Components of a Commission Agreement • 4 Steps to Getting Paid more, more often • Ask a lot of questions, share your ideas!!!

  16. What is a Tenant Rep? • Corporate Acquisitions and Dispositions • Advisory and Consulting

  17. What is a Tenant Rep? R-e-p-r-e-s-e-n-t-a-t-i-o-n, not deal-making

  18. Getting Hired What makes commissions political?

  19. Getting Hired Can you walk away from a bad customer? Better Asked: How much will you pay for the opportunity to lose a commission?

  20. Getting Hired Most Brokers!

  21. Getting Hired What your customers want!

  22. Getting Hired Why do your customers choose you? How do you differentiate yourself? Most “differentiation” … isn’t!

  23. Getting Hired Why do companies seek commission discounts?

  24. Getting Hired Are you a discount real estate company?

  25. Getting Hired Wouldn’t you prefer be known for providing great service and be paid your real worth?

  26. Getting Hired “Your culture is your competitive advantage!” Jason Jennings

  27. Getting Hired Are you loyal to your customers? Do they think so?

  28. Getting Hired Conflicts of interest, like representing a lot of properties, make tenant representatives appear disloyal! What if your attorney was buddies with the opposing attorney?

  29. Getting Hired Are your customers loyal to you? “Satisfied customers leave”Jason Jennings

  30. Getting Hired When should you offer discounted fees? The lower priced service should always win…right?

  31. Getting Hired If you must compete on price you have no customer loyalty, and no differentiation!

  32. Getting Hired If you offer a low price and still lose, you’ve given the customer no reason to hire you.

  33. Getting Hired • Never work without a written representation agreement • Present the idea of a letter of engagement at your first meeting

  34. Getting Hired Give your clients multiple reasons to feel comfortable hiring you • Permit them to fire you! • Disclose your commissions

  35. Getting Hired Out of the blue!

  36. Getting Hired Question: What is the best service that’ll ensure you’ll get hired? Answer: What are your clients looking for? Ask them!

  37. Getting Hired • Walk away from bad business and bad clients! • Commercial real estate services industry in too generic…DON’T BE GENERIC! • Don’t compete on price! • Your clients don’t want one-size-fits-all services…Know what your clients want…Ask them! • Don’t be a trained seal…Land the plane without landing gear! • Your clients don’t care about real estate. They care about their businesses…Offer services that’ll support what’s important to them! • Without a relationship, you probably won’t get hired…Build relationships based on sound business principles, not just golf! • Don’t be a Yugo…Give your clients a lot of reasons to hire you! 8 Steps to Getting Hired More Often

  38. Getting Paid $$$

  39. Getting Paid When is the 1st time you should address commissions?

  40. Getting Paid When you first present your services!

  41. Getting Paid When should you offer commission discounts?

  42. Getting Paid If you offer no benefit beyond that of your competitors, no differentiation, or no service…Always!

  43. Getting Paid If you: • provide great service, • are incredibly responsive, • solve problems…quickly, • help clients achieve business objectives, • offer business solutions, not just real estate deals • provide honest and creative ideas, • really give a damn about their company, • and exceed their expectations, you should rarely negotiate commissions!

  44. Getting Paid When should you first inform the landlord or seller of your commission requirements?

  45. Getting Paid

  46. Getting Paid When should you first inform the landlord or seller of your commission requirements?

  47. Getting Paid The landlord is a friend (Whah!) I’ve done other deals with the landlord and accepted discounts (Where’s my mommy?), I play poker with the landlord (Where’s my bottle?), The landlord’s a member of my golf club (My diaper needs changing!)

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