Commercial Real Estate News / Marketing / Building Trust and Relationships in Real Estate

Building Trust and Relationships in Real Estate

Published: 08-07-24 Category: Marketing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Whether you're new to commercial real estate (CRE) or an established real estate agent or broker, you're well aware that numbers make your world go round.

Prospective buyers and tenants almost always ask about square footage, cap rates, demographics, and estimated Return on Investment (ROI).

While these and other types of data are important to everyone concerned, it's just as important to remember that your personality, character, and ability to befriend can set you apart.

Take a look at your positive reviews from established clients. While some praise you for assisting them with a difficult deal, just as many reviewers will tell others that you can be trusted, professional, and friendly in equal measure.

While more than one famous person, including inventor Buckminster Fuller, has stated that relationships are everything, it's sometimes easy to overlook this fact in the context of your responsibilities.

The CRE industry is evolving daily, and as our national business outlook changes, clients will look for reliable agents and brokers they can trust. Cultivating relationships with clients leads to referrals, and these can turn into lucrative new opportunities.

Building relationships isn't a simple process, but when you're careful to build a reputation within the CRE industry, they're much easier to cultivate.

Here are some things to remember.

The Cornerstone of Every Relationship: Trust

When you assist others with buying, selling, and leasing commercial real estate, your reputation is one of your most valuable assets.

Earning others' trust strengthens your reputation in an industry where large sums of money and long-term commitments can be at stake.

This is why your clients need to feel confident that you have their best interests at heart and aren't simply chasing a commission.

Trust in CRE is earned through transparency, a track record of delivering on promises on time and as described, and consistently ethical behavior.

Here are some proven strategies to earn and maintain trust:

Always be honest, even when the news is bad.
Follow through on commitments, no matter how small.
Admit your mistakes and take responsibility when things go wrong.
Check market data daily so you can provide the most up-to-date advice

Whether you're reporting your latest finds to building owners or discussing leases with new tenants, building trust is impossible if you don't deliver your news professionally.

Communication Builds Relationships

Effective, smart communications aren't just about explaining a lease clearly or delivering demographics on time. Go further.

Ask your clients to share their needs and concerns. They'll be drawn to the agents and brokers who understand their needs.

In addition, communication is more than talking. It's only half of the equation. Active listening is equally important.

Pay attention to what your clients say and what they don't say. Ask them to share their concerns.

It's also a good idea to ask clients about their preferred methods of communication. Some prefer texts, while others may want you to call or email them with updates.

Keep clients informed at every stage of the process, and be proactive in addressing potential issues.

Building your communication skills encourages others to see you as a CRE professional.

Maintaining Professionalism

While relationships are about connecting on a personal level, you'll want to maintain a professional look. Dress for your market, proving you're on the same “playing field.”

Other things to remember include:

Be on time for meetings, punctual, and respectful of others' time;
Maintain confidentiality at all times;
Stay calm and composed, even in high-stress situations; and
Continuously improve your local market knowledge.

Keeping all of these rules in mind will bring you closer to your goal of building the type of relationships that last for years.

Fostering Long-Term Relationships

In the world of CRE, your goal should be to create clients for life, not just for a single transaction. This requires a shift in mindset from short-term gains to long-term relationship building.

Stay in touch with past clients. You may have the intel to help them make informed decisions or solve problems in other ways.

In addition:

Share relevant market news and the latest quarterly data;
Congratulate them on a recent business or personal success;
Simply check in periodically to say hello, or to deliver coffee or similar; and
Remember what's important to them personally. This can be the college they attended, the sports they played, or their pet's name.

If all of this sounds overwhelming, don't worry. Finding the right customer relationship management (CRM) system goes a long way in helping you manage your relationships.

A CRM helps you provide truly personalized service and demonstrates that you value the relationship beyond the transaction. Each CRM offers its own set of features, so you'll want to check out several and compare their functions and prices.

Since CRM systems automate a variety of tasks, you'll have time to learn how to be a true problem-solver. This begins with empathy.

Bring Empathy Into the Chat

Difficult situations arise in businesses involving high-stakes decisions. How you handle them can build or break a relationship.

Empathy can be defined as the action we take to identify with or share the experiences of others, including their emotions and thoughts. It helps you be more than a problem-solver; it strengthens relationships.

For example, if a lease deal is on shaky ground, try to consider how the landlord and tenant feel. Keep in mind that the tenant may have no prior CRE leasing experience, and the landlord may be under a lot of pressure to fill vacant spaces. As such, both may be feeling stressed, vulnerable, and naive.

Often, what appears to be anger or frustration is actually fear. Addressing these underlying concerns can often defuse tense situations and strengthen relationships.

When things go wrong because of a slip-up on your part, take responsibility and focus on finding solutions rather than placing blame. Your clients will consider you a problem solver instead of a careless agent.