When the economy gets difficult, many commercial real estate agents tend to make the same critical mistake: they pull back on doing their prospecting. They convince themselves that “no one’s doing deals right now”, or that “owners aren’t going to list their properties until the market improves.” And while it’s true that transaction volume slows down during economic downturns, the reality is that pulling back is the fastest way to guarantee that you’ll struggle even more.
The Trap That Many Agents Fall Into
In challenging times, agents often pull back from doing what will have them generate more new business. They bury themselves in busywork and research, with an underlying attitude of “waiting until the market picks up.” But here’s the truth: the agents who build the most solid businesses don’t just work hard when the market is hot. They know that downturns are when real opportunities arise, and they double-down on prospecting while everyone else is pulling back.
With this in mind, there’s a top-producing broker who I interviewed years ago, during the last economic downturn, and he told me that he was prospecting 25 hours a week during that time! He already had decades of experience in brokerage, but he realized that this is what he needed to do, to maximize his income during the downturn.
Why Prospecting Matters Now More Than Ever
- Distressed Owners Will Appear
Economic pressure creates motivation. Owners who were comfortable before may now be facing vacancy issues, loan pressure, or other economic challenges. These are the exact same people you need to be prospecting in order to locate them, because they may be looking to do something right now. - Less Competition
Because so many agents slow down with their prospecting, you’ll find fewer competitors making those calls right now, sending those emails, and knocking on those doors. This gives you a chance to stand out and win relationships that you wouldn’t have won in a crowded, booming market. - Pipeline Protection
Deals in commercial real estate don’t happen instantly. They often take months—sometimes years—from the first conversation, all the way through closing, and if you stop prospecting now, you’ll be starving your pipeline in the future. When the economy does improve, you’ll find yourself with no momentum, and you’ll really be scrambling to catch up. - Positioning Yourself as the Top, Go-To Advisor
During uncertain times, owners, tenants, and investors need trusted guidance. So if you’re the one showing up consistently—educating, advising, and staying in touch—you’ll help cement yourself as being their go-to agent. Then when they’re ready to act, they’ll be more likely to work with you, and not work with the agent who disappeared.
The Mindset You Need to Embrace
Tough markets separate the true professionals from everyone else. You’ve got to decide if you’re in this business half-way right now, or if you’re in it to dominate. The truth is, you don’t need the entire market to be on fire to generate solid business—you just need to capture your share of the opportunities that exist right now. And those opportunities will always go to the agents who are out there, prospecting every day, building relationships, and showing up for their prospects consistently.
One Final Thought
The bottom line is this: when the economy gets tough, your commitment to prospecting is what determines both your short-term, and your long-term success. This is the time to sharpen your skills, increase your determination, and connect with more owners than ever before. Because when the market rebounds—and it always does—you’ll be miles ahead of your competitors, who may be choosing to sit on the sidelines right now.
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If you’re interested in becoming more effective with your prospecting, and in getting more listings, closing more deals, and transforming your brokerage business with the latest AI technology, and you’d consider doing one-on-one coaching together to make it all happen, send me an Email or give me a call!
“After having been in business for over 25 years, Jim has helped me to refocus on the activities necessary to bring my business to new levels.”
Ross Thomas, SIOR
Delphi Business Properties
Past President, AIR Commercial Real Estate Association