JSU / Playbooks / CRE Brokerages
How to price your CRE sales bottleneck
Run the same math as the JSU Bottleneck Index on your own CRE numbers in three steps.
The CRE Brokerages bottleneck prices a single question: what does it cost you per year to be slow and unfocused at first contact? For a typical firm it is around $384,000.
The formula
Annual bottleneck = average deal value × winnable deals lost per quarter × 4. For CRE Brokerages, that is $96,000 × 1 × 4 = $384,000.
Run it on your real numbers
The published figure is representative. Take your own average deal and your honest quarterly loss to slow and generic follow-up. Before the listing exists.
- A lease expiry approaches with no renewal signals
- Ownership behavior suggests a quiet disposition
- Permit filings reveal expansion or exit plans
- A competitor's listing stalls and the owner shops
Then decide if it's worth closing
Once you have your number, compare it to the cost of fixing speed and aim at first contact. In cre brokerages, the leak is almost always the larger figure.
Remember what each variable really represents. The $96,000 is one cre relationship walking out the door. The 1 losses a quarter are not no-fits; they are deals you could have won had you reached the buyer inside the about a week window. Multiply by four and you have a full year of revenue that went to whoever simply answered first. That is the figure to price your fix against.
The bottleneck is rarely effort. It is speed and aim at the first touch.
How does an engine win a listing before it exists?
By reaching the owner during the decision window the lease expiry, the quiet disposition, the stalled listing rather than after the sign goes up.
Which signals predict a listing forming?
Lease expirations, ownership behavior, permit filings, and stalled competitor listings.