One of KJF Partners’ Core Values is:
“ We are driven by our personal commitment to create value for our investors, teammates and brokers.”
To serve our broker partners, we send occasional emails that focus on things that I have learned through my brokerage history or that I notice from my current role on the principal side of the business.
Brokerage is a very challenging business, and the bull market run that real estate has experienced has attracted many new brokers to the business. Creating a space/niche that you can dominate is a necessary element to help differentiate yourself from your competitors. I value brokers that convey expertise, relevant to my business, over their competitors. Your expertise may be market area specialization, a specific product type, a tenant specialty, or any number of other areas of focus. When I’m cold-called, and I hear there is value in extending the conversation because the broker has useful information targeted to my market-segment interests; I’m happy to engage in continued conversation.
When I was a broker, it was typical for specialization to be related to a product type, (retail, industrial, apartments, office), a geographic area of expertise, and a transactional focus, (investment sales vs. leasing). Today, the market has progressed and further differentiation may be productive in creating value for clients. In today’s brokerage market, geographic areas have widened but, I see brokers wisely focusing on more specific product categories. Since I buy single tenant QSR properties, brokers that share that focus are those I speak with most frequently. I find it helpful when a broker has a deep knowledge about the specific category that I look for. There are brokers that may focus on one particular tenant within a category such as Burger King QSR deals. As a principal, it is easy for me to believe that those brokers have developed a greater knowledge base of information regarding that tenant than I have. After all, spending all day, every day learning and transacting very specific types of deals will lead to greater knowledge, (and value), than someone that may have a very general focus.
While I believe narrowing focus leads to greater market penetration, I don’t believe you must only transact that product. Employing a narrow focus is a great way to begin your career and allows you to create value conversations with potential clients. As you grow, it is reasonable to add categories, tenants, and/or geographical scope to expand your knowledge base. Start narrow and widen over time!
PS: If you have subjects that you’d like to see become future topics for This Principal’s Perspective, hit reply and let me know what your thoughts are.
KJF Partners, Inc.
Cell Phone: 949-275-5038