How to Become a Commercial Real Estate Agent
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If you are looking to make a career change to a fast-paced field for self-starters, being a commercial real estate agent might be the right choice. Commercial real estate agents help lease, sell, and manage properties for clients and play a critical role in the commercial real estate ecosystem.
Here, we'll walk you through how to become a real estate agent. We'll cover the basic requirements of the job as well as common questions and concerns about the profession.
Let's get started.
Steps to Becoming a Commercial Real Estate Agent
Becoming a commercial real estate agent requires independent study and motivation. Below are the necessary steps to become a commercial real estate agent.
#1 – Meet the Age Requirement
You have to be at least 18 years old in the US to work as a certified commercial real estate agent. In Nebraska, the age requirement to be a commercial real estate agent is 19.
#2 – Get an Education
Becoming a real estate agent does not require a four-year college degree. Instead, you need to take a specialized real estate education course to prepare you for the state licensing exam. For example, the state of California requires license applicants to take at least 135 hours of an approved course.
The typical commercial real estate agent course covers fundamentals of the field, such as property types, real estate law, and property valuation. It can take anywhere between two and eight months to complete a real estate course, depending on whether it's online or in-person.
#3 – Obtain Your License
After finishing an approved course, you can sit for the state license exam. Each state has a different exam you must pass to receive a license and work as an agent.
License exams typically contain a section on national commercial real estate law and state commercial real estate law. The exam is usually multiple choice, and most states require at least a 70% to pass.
It usually takes a few weeks after the exam to get your results and obtain your actual license. Most states also charge an examination fee and a licensing fee, and the licensing process will also involve a background check.
#4 – Find a Position
Once you get your license, you need to find a broker to work with. New commercial real estate agents can't work independently and must work with a licensed firm.
It can be difficult to find a job with a firm that specializes specifically in commercial real estate, so starting with residential real estate will give you a firm grasp of real estate fundamentals and net you some work experience.
You can also increase your chances of getting a job by joining a professional organization, such as the National Association of Realtors (NAR). These associations can help you network and contain opportunities for professional development and continuing education.
You should also consider your specialization. Specialization is crucial because you can develop your niche in the commercial real estate industry. Agents can specialize in a wide range of properties, such as offices, warehouses, condos, apartments, and more.
#5 – Maintain Your License
Most states require license holders to take continuing education courses and renew their licenses every few years. For example, California commercial real estate agents must renew their licenses every four years and take 45 hours of continuing education credits.
Differences Between Real Estate Agents & Real Estate Brokers
The main difference between a commercial real estate agent and a broker is a broker can independently buy and sell properties while an agent cannot. Agents must work under the supervision of a licensed broker.
Becoming a broker requires passing a separate state licensing exam. Different states may also have different education requirements to become a broker.
Frequently Asked Questions About Becoming a Real Estate Agent
Below are some of the most frequent questions we receive about becoming a real estate agent.
What Is the Average Salary for a Commercial Real Estate Agent?
According to data collected by ZipRecruiter, the national average annual salary for a real estate agent is $93,907. The states with the highest average annual real estate agent salaries are Washington and Maryland, at $104,032 and $102,169, respectively.
The states with the lowest average annual salaries for real estate agents are Louisiana and North Carolina, at $68,000 and $65,393.
What Is the Job Outlook for Commercial Real Estate Agents?
According to the Bureau of Labor Statistics, there are approximately 562,100 real estate agent jobs as of 2021. The profession is expected to grow 5% between 2021 and 2031—about the national average job growth rate.
What Skills Does a Commercial Real Estate Agent Need?
Commercial real estate agents make use of several social and “soft” skills for interacting with clients and properties. These include the following.
#1 – Communication Skills
Agents spend their days communicating with clients, buyers, and sellers, so they must communicate effectively, concisely, and empathetically.
#2 – Interpersonal Skills
Commercial real estate agents work with people all day and must be able to form positive working relationships with a wide range of people and personalities.
#3 – Organizational Skills
Commercial real estate agents work with significant amounts of documentation, data, and information, so they need organizational skills to keep track of client and property details.
#4 – Problem-Solving Skills
Commercial real estate is a fast-paced and ever-changing landscape, so agents must be adaptable and have creative problem-solving skills.
#5 – Negotiation Skills
Agents often negotiate leases between tenants and landlords, so they must be diplomatic, friendly, and willing to establish professional relationships.
#6 – Research Skills
Agents spend a lot of time pouring through databases to find properties to represent. Research skills are imperative for finding and organizing data.
What Is the Typical Work Environment for a Commercial Real Estate Agent?
Commercial real estate agents typically work in office environments but spend significant time away from their desks dealing with clients and properties.
The typical day of a commercial real estate agent could involve meeting with clients, showing properties, completing paperwork, and taking phone calls in the office. Many commercial real estate agents work from home.
Wrapping It Up
Between education, licensing, and finding a job, you could start working as a commercial real estate agent in as little as a year. Being a commercial real estate agent takes a lot of motivation and initiative, in addition to the requisite knowledge.
That said, it's a potentially lucrative career that attracts a certain type of people-person who likes being diplomatic and making deals. With a little bit of grit and determination, you can start on the path to becoming an agent today!
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MyEListing.com maintains one of the largest databases of commercial agents & brokers in the country. Use it for free to find an agent or broker near you.
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