An occupation in commercial real estate provides potential clients like residential real estate but with a greater focus on assets that generate revenue. For business in this area, you have to get a commercial real estate license, that includes meeting certain standards. This career path includes jobs as a commercial real estate agent, broker, property manager, or even in real estate development or law. Commercial real estate specialization is needed due to the degree of complexity in agreements as compared to residential real estate.
What is a commercial real estate agent?
Commercial real estate refers to the acquisition, sale, or lease of income-producing properties such as accommodations, office buildings, and retail malls. While residential real estate focuses on people’s houses, commercial properties are held by investors who profit from tenant rent.
Role of a commercial real estate agent
Commercial real estate agents have duties like residential agents. They often:
- Search for potential clients and property listings in the area.
- Reach out to new clients through calls and networking.
- Study local demographics, population, and environmental data to provide clients with insights.
- Check real estate market trends and property values.
- Organize and attend property inspections.
- Market properties to attract buyers or renters.
- Prepare legal documents, like contracts.
- Negotiate and finish deals between property owners and buyers or renters.
8 steps to getting into commercial real estate
1. Get a real estate license.
To get a real estate license, you must meet your state’s specific requirements. These usually include:
- Being at least a certain age (depending on the state).
- Passing a background check.
- Having at least a high school diploma.
Since requirements differ by state, it’s important to check with your state’s real estate board or regulatory agency for exact details.
After meeting the basic requirements, you’ll need to:
Complete Pre-License Education:
Take a state-approved real estate course. The number of required hours varies by state. For example, New York requires 75 hours, while Texas needs 180 hours. These courses cover real estate basics, laws, and both state-specific and national topics.
Pass the licensing exam:
The exam is usually multiple-choice and can range from 75 to 150 questions. It’s recommended to use study guides or programs, as pass rates are between 50 and 60%. After passing, states usually post results within a week and issue the license soon after.
2. Find employment
Start to search for job possibilities in real estate. You have the option to work for a real estate brokerage that deals with both residential and commercial properties. Business deals are more difficult and take longer to finish, so start with house operations, which are simpler and faster. You might also join a firm that focuses on commercial real estate. These companies offer training programs with an income, helping you to focus on learning without the burden of looking for clients right away. Yet, because of the benefits and emphasis on commercial work, these roles may be competitive.
3. Build your network and community
Some real estate agencies may need you to join a regional or national association as part of your work. Even if it is not needed, registering can help you increase your credibility, broaden your network, and gain access to valuable resources. For example, the National Association of Realtors (NAR) is the biggest business organization in the United States. It offers benefits like training and ongoing instruction to both residential and commercial agents. By entering NAR, you can earn the position of Realtor, showing your devotion to a code of ethics while improving your professional standing. Many commercial real estate companies also recommend joining organizations like NAR, ULI, or REBNY to keep learning and networking.
4. Do specialization and gain experience
As your career grows, specializing in specific types of commercial real estate, such as retail, office, or industrial assets, might help you separate out. Specializing allows you to build up broad expertise in a specific field, making it easier to attract the proper clientele and establish a strong reputation.
Starting with a brokerage business that focuses on commercial real estate is also an excellent choice. Some seasoned brokers and agents can mentor you, educate you, and help you expand your network. If you want to turn into a commercial real estate broker, they will help you begin your journey and guide you along the way.
5. Create a marketing strategy
While mentorship and joining professional organizations can help you understand the local commercial real estate market, it’s crucial to develop a marketing strategy. This plan should outline your target property types, client approach, unique selling point (USP), budget, and marketing methods. Additionally, set clear goals to measure your success. You can build on this by following general marketing guidelines to help you generate leads.
6. Explore other career options
As a commercial agent, you have options beyond sales, such as working in development, where you buy land, arrange financing, and manage the construction and leasing process, or in property management, handling daily operations like repairs and staffing. With specialization, you might wish to consider becoming a commercial real estate broker, which enables you to own a business, hire agents, and maybe run a company that manages properties. To become a broker, you have to take state-required coursework and pass an exam. If you are thinking about starting your firm, more training in finance and business can be useful.
Bottom line
Pursuing a profession in commercial property offers diverse opportunities and the capacity to increase. By acquiring the right license, gaining experience, specializing in a gap, and constructing a strong network, you can establish yourself in this discipline. With dedication and the proper strategies, you can enter the complex yet profitable world of business.
