Total SF in Target Market
Units of Comparison
Square Feet of GROSS Annual
Estimated Amount of Square
Feet Handled by Brokers
Average Lease Term
Current Average Lease Rate
$20 PSF Full Service
Gross Aggregate Leasing Volume $340,000,000
Average Tenant Rep Fee
4% on gross aggregate lease
Total Gross Fees Generated in
the Target Market
Square footage of leased
(This can be determined for tenant rep
brokers by reducing the overall office
inventory by the percentage of product
that is owner‐occupied.)
(Assumes an average lease
term of five years, with
approximately 20% of the
lease terms rolling annually).
This number would increase in years with
significant positive net absorption, and
decrease in years with negative net
Determined by multiplying the
gross annual absorption by
the estimated percentage of
deals represented by brokers
(85% in this example)
Varies by market segment
Average lease rate in your
3.4MM square feet x $20 x 5
This is an estimate. Note that
fees are always negotiable.
(If the renewal rate is different from the
“new deal rate”, you can determine the
renewal probability and apply separate
fees to new deals and renewals.)
Total gross leasing volume x
Average Tenant Rep Fee
Strengths: Some clients view commercial brokers as commodities. Why would someone hire you? One of my strengths is my appraisal
background as a Florida Certified General Appraiser, which has given me a great amount of competency when determining asking
prices for industrial buildings that I list for sale. You need to have something that differentiates you from your competition. If you think
your strengths are the company you work for or “good client service,” it is time to go back to the lab and come up with some other
attributes. If you want significant market share, you need to stand out in a good way.
Weaknesses: This is where you need an honest assessment of your weaknesses. It can sometimes be hard to receive feedback from
your peers or clients regarding perceived deficiencies in your client service. If you are invited to compete in a “bake off” for an assignment and do not win the business, take the time to interview the client to determine why you were not selected. You probably spent a lot
of time preparing for the presentation; you need to get something out of it. I try not to lose many pitches, but I always learn something
from these post-selection interviews when I am not selected. If you work for a firm, you can receive this feedback from your manager.
If you own your own business, it can be a little more difficult to receive honest feedback from your associates, but make the effort
anyway. We all have weaknesses. Understand yours and reduce their impact on your business.
Opportunities: In a down market, many people see the threats, but successful agents realize there will always be opportunities.
Working on bank-owned real estate and pursuing business in the alternative energy field are examples of opportunities brokers have
gravitated toward to generate new business.
Threats: A double-dip recession and new competitors entering the market are examples of threats that you should consider when preparing your plan. There is a lot of money to be made in commercial real estate, and therefore it will always attract entrepreneurial and
aggressive individuals and firms. These firms may include familiar real estate companies that increase their footprint in your market