Great Brokers Always Produce

Today’s post is meant as a reality check for all commercial real estate advisers slugging it out in the toughest market conditions we’ve experienced in this generation. To the chagrin of many, the text that follows is harsh, but it is nonetheless true. Great brokers always produce…Don’t tell me what type of producer you were during the frothy markets of 2005 when sellers experienced record low cap rates, buyers were aided by loose credit and a strong flow of funds from the capital markets, and transactions just seemed to almost close themselves. Rather, show me what type of producer you are today. You see virtually any broker can put-up record numbers during good times, but the real question is what can they do when the market is getting crushed? As the CEO of one of the nation’s largest commercial real estate firms I’m pleased to say that the majority of our advisors already understand what I’m addressing in the text that follows, but for those that don’t, here’s a gut check for you…

The harsh reality is that you won’t be remembered for your production in 2005…You see, it is the 2009 market that will define you professionally. Will you rise to the challenge or succumb to the adversity? Will you find innovative ways to get things done for your clients, or will you just continue to do the same things in the same way you always have? It is the producers that find a way to perform when most are struggling that will be remembered as the go-to brokers in the years ahead…So, the question is: “Can you survive 2009 and 2010, or will you be weeded-out by the exceptionally tough and competitive current market conditions?”

A fundamental macro-economic reality is that when markets cycle, consolidations occur…weak players who once prospered by riding the wave of booming markets are often crushed by more savvy competitors with greater skill sets capable of competing during even the toughest market conditions. Nowhere in the commercial real estate industry is this phenomenon more present than in the brokerage community. I witnessed novice brokers with little experience or competency have seven-figure years during 2005. Many of these same brokers are now out of the business because they didn’t possess the tools, competencies, skill sets, or the sphere of influence to navigate today’s market conditions.

The reality is that top commercial real estate brokers have staying power…they have reached the pinnacle of their profession because they invest in their business, have the best marketing platforms, possess better business and real estate acumen, and have the right connections. These are the power brokers that can close deals when everyone else’s transactions are falling out of bed. Top performers, especially in today’s market are absolutely worth of penny of the commissions they earn…

Bottom line…how will this market define you? How will your clients and prospects remember your contributions to their success in 2009? With only one quarter left in 2009 the jury will be in soon. My advice is simple…go make it happen.