How to Get Into Commercial Real Estate as an Agent/Broker
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Whether you're an established residential agent or just passed your state's real estate exam, a career in commercial real estate (CRE) can be a lucrative choice for brokers willing to work their way up to multi-million dollar transactions.
While residential real estate deals in different housing types, commercial real estate continues to diversify. In addition to the four main types of CRE—retail, office, warehouse/industrial, and multifamily—mixed-use properties are “entering the chat,” as the kids say.
Other newer entries to the CRE arena include facilities purpose-built for biotechnology companies and former office buildings undergoing conversion in response to remote and hybrid work trends.
In fact, learning about the newest developments is an excellent place to begin your CRE career.
Become Familiar With Today's CRE Landscape
It's crucial to understand the latest changes to the CRE market, especially how it's evolved since the arrival of a global pandemic and the sweeping changes this fueled.
Familiarize yourself with different property types, national and regional market trends, and the latest agent strategies for closing commercial transactions.
Online and subscription-only publications can also be helpful. Consider subscriptions to or bookmarking these online:
In addition, it's well worth considering online or continuing education (CE) courses like the ones we'll discuss in the next section.
Train Your Brain for CRE
While a specific degree isn't necessary to obtain a real estate license, taking courses in business, finance, or economics can be extremely beneficial for ambitious CRE brokers.
For example, if you can calculate passive income from a major lease agreement without a calculator, you'll make a positive impression on property owners and CRE landlords (especially if they hate math).
Some courses that can help you build your career include:
- Property valuation;
- Commercial leasing;
- Real estate finance; and
- Financial analysis.
No matter which courses you select, look for one or more that provide a deep dive into financial analysis and its relation to CRE. You'll want to learn how to:
- Calculate capitalization rates;
- Perform discounted cash flow analysis; and
- Understand and explain internal rate of return (IRR).
Universities and professional real estate organizations offer specialized commercial real estate programs or certifications. Most can be completed online.
After you've chosen one or more CRE courses and feel confident with your business knowledge within your territory, you'll be ready for one of the biggest steps in your career…that first brokerage job.
Join a Commercial Real Estate Firm
There's no substitute for working within an established brokerage, even if your first job is similar to an intern or junior.
Look for firms that offer training programs for new agents, and if you find one with a mentorship program, put it at the top of your list.
During your first years employed by a CRE firm or brokerage, you'll:
- Learn from experienced professionals;
- Understand the day-to-day operations of commercial real estate;
- Build a network within the industry; and
- Have access to resources and tools specific to commercial transactions.
A superior resume can help land this crucial first position.
Some recommendations for resume content provided by established CRE brokers include:
- Begin with a concise summary statement that tells the brokerage why you're a top candidate.
- Include detailed bullet points within your work experience section that directly relate to the position.
- Provide details of past projects and responsibilities that prove you can perform the tasks required for the position.
After you've learned the basics, you can begin looking for opportunities to meet and socialize with senior brokers, property investors, and vendors.
Handshakes, Hashtags, and Hot Leads
Networking with the right people is vital for anyone involved in sales and leasing, and commercial real estate is no exception.
Since CRE is its own unique world, your first networking efforts should include joining organizations like the CCIM (Certified Commercial Investment Member) Institute or SIOR (Society of Industrial and Office Realtors).
Visit the CCIM and SIOR websites regularly for news on upcoming events, conferences, and exhibits. Connecting with local business owners, property owners, and investors can also help you build a career.
If you gravitate towards a certain type of CRE, consider specializing in a specific niche.
Specialize in a Niche
Commercial real estate is a diverse, evolving world, so it's not unusual for brokers to gravitate to a particular property type or client.
Here are some paths to a profitable niche:
- Office leasing;
- Retail properties;
- Mixed-use properties;
- Industrial or warehouse spaces;
- Multifamily housing; and
- Land development.
Becoming an expert in one area can help you fast-track your career by becoming the “go-to” broker for your chosen niche.
The next two sections may come naturally to you after a year or two of working for a brokerage, but you can give yourself a head start by perfecting the following skills.
Develop Your Analytical Smarts
Commercial real estate often involves uniquely complex negotiations.
You can make yourself especially valuable during these transactions with these abilities:
- Analyzing market trends and property data;
- Navigating zoning laws and regulations;
- Finding shortcuts to zoning changes; and
- Understanding the state and federal tax implications of commercial transactions.
If you follow the guidelines we've discussed, you're more than ready to plan your transition from your current position to a commercial real estate brokerage firm.
In conclusion, here are a few tips to remember.
Keeping Up With Market Dynamics
Various factors, including several unpredictable ones, influence the commercial real estate market.
Put the following on your daily reading list by subscribing to CRE news sources that deliver:
- Local and national market trends;
- Economic indicators affecting commercial real estate;
- Emerging technologies in property management and analysis; and
- Changes in zoning laws and regulations.
Be prepared to adapt your strategies as the market evolves.
Grow Your Career by Knowing What's Happening in Your Area
MyEListing.com provides new CRE brokers with up-to-date market intelligence on a variety of topics.
Make finding new commercial real estate projects easier than ever with MyEListing's Client Connection Program.
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