Frank Schulz III, SIOR, is no stranger to the mistakes brokers make in the early days of their careers. The man- aging principal of the Klabin Co./CORFAC International frankly admits that he’s made many of them himself. Plus,
as chair of the SIOR Young Professionals Committee, he’s had
the opportunity to chat with up-and-comers from around the
country about best practices and the learning curve that’s part
and parcel of a burgeoning career.
So we thought it appropriate to chat with the Los Angeles-based Schulz about the biggest mistakes young pros make.
Here are his Top 10:
1. SWINGING FOR THE FENCES
The image of closing huge deals with big paydays is a major allure of a career in commercial real estate. Schulz calls
it elephant hunting. But building the relationships that lead to
bagging those big ones, “can take three, five, or 10-plus years,”
says Schulz. “It’s very important to understand that there’s a
balance. You need to develop long-term relationships but you
can’t let that be your only focus.”
Embracing that balance is particularly important in the early
lean years. “There are two reasons why you work on smaller
deals,” he says. “First is that the client will talk to you. Second
is that you’ll get paid faster.” We’ll explore the art of elephant
hunting shortly.
2. NOT QUALIFYING LEADS
It’s a pretty sure bet that if a potential client is calling you for
information, he’s already called six other brokers. Newbies
“fall into the trap of spending time putting that information together without asking the right questions or meeting with that
prospect. They’ll send an email with the information and they
think they’re actually working toward a deal.”
The reality, says Schulz, is that “you’re only being used. It’s
a matter of qualifying who’s a real lead and who’s not, and
that’s something I still work on to this day. You try to do everything because you’re trying to feed your family. But you need
to qualify the odds of making money on that deal. If you know
the potential client is talking with other brokers and it’s a small
deal demanding a lot of hours, you have to value your time at a
greater dollar amount than the prospect does.”
3. IMPATIENCE
If you are into elephant hunting, expect to spend a lot of time
crouching in the weeds. “Young brokers often expect to make a
phone call and reach a client who says he needs 100,000 square
feet next week. The reality is that you have to call that client
three years before he needs that 100,000 square feet, and ask
if you can meet with him.” And, in fact, that prospect is likely
to say no. “So, the young broker will go on to the next call.”
But says Schulz, that’s the very best time to meet a potential
client--well in advance of his needing space. The true skill of
any broker is to get that face time and set the stage for remembering you when, years ahead, that 100,000-square-foot need
does arise. “Remember, when he’s a year from his new lease,
he’s probably already heard from 10 other brokers.”
4. BURNING BRIDGES
While we’re on the subject of relationships, Schulz emphasizes some of the most important connections a young pro can
make—other brokers. “There are relationships, and there are
long-term relationships,” he says, “Relationships with other
brokers are equally important—if not more so—than relationships with clients.”
He says he gets most of his inside information from other
brokers and believes that “you’ll do more deals with any one
broker than you will with any one client. If you treat a broker
badly, that will live longer with you than if you ever make a
mistake with a client.”
Ten Big Mistakes Young Pros Make
AllThingsConsidered
“Relationships
with other brokers are equally
important—if not
more so—than
relationships with
clients,”
says Frank Schulz,
chair of SIOR’s Young Professionals
Committee.
By John Salustri