Li

Lipsey School of Real Estate2011 Systems for Success

Presented by

Mike Lipsey, MCRE

Module 9 Consultative Brokerage 9.1………………………………...Services that Sell9.2……………………..Methods of Compensation9.3……………………….…..Assembling the Team

Module 9: Consultative Brokerage

Most Brokers do not think of themselves as

Service Providers, however, an additional

40% of total annual income could come

from non-transaction activities – or

Consultative Brokerage

Consultative Brokerage

9.1

Commercial Real Estate Cycle

Phase 1:

TransactionManagement

Phase 2:

Account ServicesLease Administration

Phase 3:

Consultative Brokerage

Phase 4:

Real Estate Recovery Solutions

Cram DownsBlend & Extend

Four Phases of Commercial Real Estate

9.1

Situation Quadrant Solution Compensation

Consultative BrokerageWhat Services Can You Provide?

9.1

Menu of Advisory ServicesInvestment Brokerage

Menu of Advisory Services

Real Estate Tax Audits

Amenity Market Evaluation

Acquisition

Corporate Financial Consulting

Project Financing and Equity

Sourcing

Corporate Sales

Disposition

9.1

Menu of Advisory ServicesAsset Management

Menu of Advisory Services

Pre-Construction Consultation

Design and Specifications Review

Lease Administration

Operational Analysis

Contact Negotiations

Preventative Maintenance Program

Tenant Relations Program

Pro-Forma Expense Analysis

9.1

Menu of Advisory ServicesGeneral Consulting

Menu of Advisory Services

Strategic Management

Value/Risk Analysis

Financial Structuring

Labor Availability

Site/Image Analysis

Location Analysis

Land Acquisition

Demographic Studies

Property Valuations / Appraisals Facilities Inventory

9.1

Menu of Advisory ServicesConstruction

Menu of Advisory Services

Architectural & Engineering Interface

Schematic Cost Estimate

Preliminary Schedule

Constructions Inspections

Insurance Requirement

Contract Procedures

Permits

Specifications Bid Package

Contract Negotiations Punch List

9.1

Menu of Advisory ServicesPlanning

Menu of Advisory Services

Zoning / Subdivision Analysis

Covenants Analysis

Conditions / Restrictions Analysis

Annexations Analysis

Site Planning

Landscape Design

Signage Problems

Surrounding Land-Use Analysis

9.1

Menu of Advisory ServicesPermitting

Menu of Advisory Services

Environmental Impact Statements

Environmental Protection (EPA)

Corps of Engineers

State and Local Sanitary Districts

Municipal Subdivision Permit

Transportation Improvement Permit

Municipal Landscaping Permit

State Water Resources

9.1

Menu of Advisory ServicesEngineering

Menu of Advisory Services

Soils Testing

Boundary Surveys

Topographical Surveys

Utility-Availability Analysis

Flood-Plain Analysis

Wetland Analysis

Plats

Detention-Feasibility Analysis

9.1

9.2

Methods of Compensation

All Assignments Might Not Result In A Commission

Alternatives to Traditional Commission Compensation

Consulting Fee Bonus Percentage of Savings Percentage of Value Creation

9.2

Calculating Consulting Fee

Annual Financial Goal / 1500 = Hourly Consulting Fee

Example

($200,000) Annual Financial Goal / 1500

$133 (Hourly Consulting Fee)

Assembling The Team

9.3

Team Structure

In This Industry, Teams Fall Into the Following Categories

Project Specific Teams – Property Manager, Leasing, Investment Sales

Deal Teams – Managing Director With Pools

Assembling The Team

9.3

Team Structure (Team Types)

Super Teams – More Than Eight Members

Presentation Teams – Composition of Organization’s Capabilities

Smaller Teams

Senior Broker

Junior Broker

Marketing Coordinator

Assembling The Team

9.3

Permanent Teams:

Optimal Structure of a Permanent Team of Three to Six Members

Senior Broker

(1-2) Associate(1-2)

Marketing Coordinator

Junior Broker

- Analyst -

Admin

Broker

Associate

Junior

Marketing

Administration

Analyst

9.3

Assembling The Team (Merging Responsibilities)