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Plan, Start, and Lead a Commercial Division in Your Market CenterSchuyler Williamson

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Schuyler Williamson

2

Austin, TexasDirector, KW Commercial

Plan, Start, and Lead a Commercial Division in Your Market Center

Please complete an evaluation form found in the back of your program guide.

3 Plan, Start, and Lead a Commercial Division in Your Market Center

Why Have a Commercial Division in Your Market Center

• Capping agents• Average KWC agent volume: $3.05M• Average director volume: $4.75M

• Increased residential company dollar• $125M in referral volume

• Recruit to a full service business

Plan, Start, and Lead a Commercial Division in Your Market Center4

The Plan• Learn some commercial real estate basics• Create a strategy for your commercial

division• Grow your commercial division• Support and retain your commercial division


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Commercial Basics


Commercial BasicsThe main segments of your commercial division will include professionals engaged in the following:

• Office Buildings• Industrial/Flex/Warehouse• Retail/Restaurant• Multifamily• Land• Miscellaneous


Commercial Basics (cont.)Commercial organizations:

• CCIM: Certified Commercial Investment Member

• SIOR: Society of Industrial and Office Realtors• NAIOP: National Association of Industrial and

Office Properties• ICSC: International Council of Shopping

Centers


Commercial Basics (cont.)

• Top brokerages:• CBRE, $189B• Jones Lang LaSalle, $108B• Cushman & Wakefield, $88B• Colliers International, $71B• Newmark Grubb Knight Frank, $69B

• Similar models:• NAI Global, $55B• Marcus & Millichap, $22B• RE/MAX Commercial, $7B• Coldwell Banker

Commercial, $6B• Sperry Van Ness, $6B


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Your Commercial Strategy


Commercial Division Business Plan1-3-5 for the Market Center commercial division should address:

• Long-term structure of the commercial division• Whether there is a managing director• Policy for how residential and commercial agents

work together• Economic model and value propositions


Commercial Division StructureRecruiting Approach

Market SizeLeader

Team Leader

Small Market

For Quantity

Large Market

Managing Director

For Quantity

Asset Experts


Large Market, Managing Director

Team Leader

Managing Director, Broker

Retail

Junior Agents

Industrial

Junior Agents

Office

Junior Agents

Multi-family Land Other


Managing Director• Determine the responsibilities:

• Recruit senior agents• Train junior agents• Broker of commercial division• Establishes office policies and procedures

• Determine the plan to compensate:• Compensation must equal time expected

• Qualities to identify:• Proven production for length of time• Strong local reputation• Cultural fit


Policies and Guidelines• Commercial agent on Associate Leadership

Council.• Establish criteria for who can be a KWC agent and

who can execute a commercial transaction.• Establish guidelines for how referrals will be

executed.• Outline how leads are distributed within

commercial team.


Market Center Value Proposition• Same cap as residential agents:

• Culture• Administrative support• Office space and production resources

• Additional cap:• Commercial training• Residential referral program created and enforced• Broker transaction support• Paid-for services, i.e., CoStar• Commercial assistant and/or researcher


KW Commercial Value Proposition• Commercial Business Solution:

• Contact management system• Prospecting information• Financial analysis• Marketing• Market data and reports

• Training curriculum including Lipsey Company materials

• Network of 1,300+ commercial brokers


KW Commercial National Accounts• Executive Vice President, KW Commercial

• Rich Uzelac• Program overview• Broker requirements


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Grow Your Commercial

Division


How to Find Commercial Agents• Search within organizations:

• CCIM• SIOR• NAIOP• ICSC

• LoopNet search in your area• CommercialSearch.com search in your area• Competitor websites


CCIM Search


CCIM Search (cont.)127 agents• Phone numbers• Email addresses• Websites


SIOR Search


SIOR Search (cont.)

12 agents• Companies• Phone numbers• Email addresses• Websites


Competitor Search


Competitor Search (cont.)

40 agents• Specialties• Phone numbers• Email addresses


Speaking to Transitioning Residential Agents: Commercial Pros/Cons

Pros• Larger commissions• Business hours• Professional clients• More objective decision-making

• Year-round deals

Cons• Start-up time• Longer deal time• Competition• Identifying and getting in

front of clients• Focus/Specialization• Cost of data sources


New Member Trends


Recruiting Tools• 12 Touch recruiting campaign• KW Commercial Orientation webinar• KWRI and Executive Council support• Leadership and recruiting tools tab:

• Recruiting slideshow• KW Commercial benefits flier• KW Commercial recruiting brochure


KW Commercial Metrics• 1,262 KW Commercial members• $3.9B in production volume• $125M in referral volume

*As of December 2013


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Retention


Retention


Next Steps• Add a commercial division strategy into company

1-3-5• Address commercial activities in the company

policies and guidelines• Become familiar with KW Commercial’s value

proposition and composition• Hire Director or Managing Director to set the

standard in the division


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Q & A

34

What questions can I answer for you?

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Thank You!

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Blog.kw.com/livefeed #KWFR #KWRI FOLLOW TALK Plan, Start, and Lead a Commercial Division in Your Market Center Schuyler Williamson