Commercial agents need to understand that as asset values scale upward, so do client expectations, and a wrong move could harm their career in the long run, according to a leading industry professional.
The process of listing a commercial asset as an agent often comes under scrutiny, with each move carrying more weight the higher the asset’s price tag.
Rethink Group founder Scott O’Neill said that when listing assets valued in the tens of millions, the margin for error was narrower, and a poor decision could risk an agent’s reputation.
O’Neill said that operating at the higher end of the commercial real estate market comes with significantly higher expectations from buyers.
“At the premium end, clients expect a level of proactive communication, market intelligence, and personalised service that goes well beyond what a standard agency relationship delivers,” O’Neill said.
“They are paying for genuine expertise, access, and the confidence that their advisor has done this before at this level.”
O’Neill said agents needed to be completely upfront with vendors, or risk losing relationships in the long run, as tolerance for delay or ambiguity drops significantly as property value rises.
“High net worth clients expect clarity, decisiveness and honest advice delivered quickly.”
“They can handle bad news. What they cannot tolerate is being managed or kept in the dark.”
He said that on the premium end of the market, the most effective strategy was to pursue an off-market sale, given the smaller pool of buyers in that price range.
For agents who elected to list with a public campaign, O’Neill said it could actually work against them by creating the perception that the asset had already been passed in by other buyers who had considered it and moved on.
Reputations at stake
O’Neill said that while the financial stakes of errors in listing high-end retail assets were obvious, agents also had to be aware that their reputations were on the line.
If agents failed to handle negotiation strategy, due diligence, and legal coordination correctly, O’Neill said they risked burning bridges with long-term clients.
“A poorly handled transaction at the $20 million plus level can damage relationships that took years to build.”
“Every decision, piece of advice and negotiation move carries weight that simply does not exist at lower price points.”
O’Neill said the biggest mistakes he has seen in the space were agents setting unrealistic price guides and failing to market the listing correctly.
He said that once a premium buyer had considered an asset and moved on, they rarely returned, even if it was still on the market.
“Over-quoting on price guidance to win the listing is the most damaging mistake I see at this level.”
“It wastes months of the vendor’s time, burns through the genuine buyer pool and ultimately results in a lower price than a well-priced campaign would have from day one.”
He said that a major pitfall he had often seen was properties being listed with a generic marketing campaign, a strategy he said rarely worked at this level of asset value.
O’Neill said that assets in the upper price ranges required a bespoke campaign with a targeted buyer outreach strategy to achieve strong results, as “cookie-cutter” information and broad listings did not cut through the market noise.
Being the small fish in a big market
When starting in the commercial real estate, O’Neill said budding agents should build their market understanding early and focus on developing the craft of creating engaging listings.
“Invest in the quality of your market knowledge and your ability to tell a compelling and accurate story about an asset in the context of where the market is right now,” he said.
“Premium buyers and their advisors will test your knowledge quickly, and any gap in expertise or credibility will cost you the deal.”
O’Neill said it was important for agents to begin building a network of contacts before they had anything to offer them.
“Build genuine relationships with active capital before you have a listing to sell.”
He said that the most successful commercial agents have built knowledge and connections, helping them identify potential buyers and asset values at first glance.
“That knowledge comes from years of proactive relationship building, not reactive transaction management,” O’Neill concluded.
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