How to Create a Commercial Real Estate Listing Proposal

Last Updated: May 6, 2021

Commercial real estate agents know the importance of building up an inventory of saleable listings. Agents who focus on obtaining exclusive listings generally earn more than agents who primarily work on finding property for buyers and tenants. In the very competitive world of commercial real estate brokerage, creating and presenting a thorough and professional new listing proposal is key to winning more assignments. However, there are some basic steps that every commercial agent should know in order to create and present effective new listing proposals.

Part 1

Part 1 of 2:

Planning the Proposal

1
Gather information. Your first step in putting together a proposal should be to gather as much information as you can. You will need to know about the property itself, but also about your target audience – the people who will judge the proposal. Try to put yourself in their shoes. What are their needs? What is their situation and knowledge level? The proposal should focus squarely on them and be as customized as possible.^{[1]
X
Research source}
- Try to get information on the property from the landlord or owner. Get copies of floor plans, site plans, copies of previous leases, rent rolls, tax records, income and expense statements. Check to see if the property has sold recently. If so, note the price trends. This data will be crucial to analyzing the property, valuing it, and then putting together a marketing strategy.
- If you are responding to a Request for Proposal or RFP, carefully study the request’s requirements. Let them direct your research, so that you can respond to them in your proposal.
2
Research market data. One important part of your research will be to look into the local market. Market research will give you indicators of value and rental rates, which can be compared to the proposed listing. This information will not only be key in presenting to the prospect but also in marketing the listing.
- For example, find similar sales and lease transactions and take note of the prices. Comparable transactions will help you to value your listing and then, in your proposal, to justify that value.
Advertisement
3
Review and verify all documents. Take all of the documents you’ve compiled and review them. Often, you will find inaccuracies. Whether these errors help or hurt the listing’s marketability, it is your job to fix them in order to give the most accurate information to your clients and to potential buyers or tenants.
4
Write a detailed description. Put together a description of the property and its location, highlighting the merits of owning or leasing it. Be careful of how you use language in the description. Favor words that paint a picture and avoid those that may dampen a reader’s interest like “vacant,” “must sell,” or “value.”^{[2]
X
Research source}
- Include attractive photos. These are a very important visual aid in pitching the property. In fact, photos are better at conveying a sense of the property than just words.
- Have a list of basic repair and checks that will improve the property’s value – things like painting or updating the landscaping. These should be simple and give a good return on the investment of time and money.

Part 2

Part 2 of 2:

Writing the Proposal

1
Compile your information. Take all of the data you’ve gathered in your research and begin to put it into logical order for your proposal. There may be a lot to manage. Don’t get overwhelmed. Rather, try to find ways to sort the information. Lay the documents out on the floor or on top of your desk, for example, so that you can easily find them.
- Potential buyers or leasers will be more interested in some information than in others, like price and valuation. Keep in mind who you are talking to – your audience. Put yourself in their place. Given their business and aims, what will they most want to know? Prioritize this information.
- Also sketch out talking points. Use these in your pitch so that you can show that you’ve done a thorough job, that you understand the value of the property, and that you are the best person for the listing.
2
Format the proposal. Real estate proposals usually have a standard format, following a four-part structure. Generally, you’ll want to have an introduction of yourself and the proposal. A summary of the property and its situation follows and then a description of your ideas and the services that you are offering, including costs and other important details. Only after this should you add information to gain the reader’s trust, like your credentials, experience, education, and awards.^{[3]
X
Research source}
- The different sections are all important. Start with a client and property brief. This section is short and summarizes the client and what the property offers. It should show that you fully understand what the client needs and how the property can meet their requirements, in addition to provide an accurate description of the property as it currently stands.^{[4]
  X
  Research source}
- For the meat of the proposal, you’ll need to bring together all of your data and analysis. You should by now have identified the property’s key assets and features. Explain to your client you valuation and how you envision the target market. Who will you market the property to? What is its size? How will you attract potential buyers? These recommendations should be specific.^{[5]
  X
  Research source}
- Finally, talk about yourself, fees, and what you can offer last. At least 75% of the document should be about the property and client, not about you. Make sure that the fees you propose are at least close to parity with what is charged in the local real estate market.
3
Polish the report and add an "executive summary." The last part of the process is the touching up. Visuals will make your report stand out and be easy to understand. Each page should have graphs or charts to break down the data into understandable parts. Photos will also help. Many clients won’t read the entire document anyway, so spare them from wordiness.
- Last, add a final covering page called an "executive summary.” This is a short, 1 to 2 page overview that brings together all of the most key items about the property and its marketing. Make it as clear and easy for the client to understand. Consider using bullet points, for example. This section will give the first and most important impression.^{[6]
  X
  Research source}