These agents also tend to be in more professional environments and work on transactions that take longer, though often at higher commissions. It’s also more common for commercial agents to have higher knowledge of finances and business. If these differences sound appealing, keep reading to learn how to become a commercial real estate agent and strategies for building a successful career.
Get a Real Estate License
Regardless of deciding that commercial over residential real estate is what a person wants to pursue, the first step to becoming a commercial real estate agent is to get a real estate license. Different states have different requirements, pre-licensing courses, and tests, so agent hopefuls should research the rules where they live. Most states require that applicants are at least 18 years old, while others also ask for a high school diploma or equivalent.
Take the Courses
Just like the eligibility requirements, the amount of coursework varies by state. For example, Minnesota asks for 90 hours of education, while Texas requires 180. Regardless of the hours needed, much of the material is similar. Courses that come up during the process can include:
- Principles of real estate
- Finances
- Law
- Real estate practice
- Contracts
These pre-licensing courses give people a comprehensive understanding of the real estate business and what they need to know for the licensing exam.
Pass the Test
Once done with the coursework, it’s time to take the state’s licensing exam. The format and cost of the test will vary by state. But, they all measure the same thing: whether the agent is ready to help clients buy or sell real estate. Some states offer the exam online, while others require that candidates take it in person. Candidates should check with their state’s licensing authority to determine the requirements.
Thereโs usually a proctor for the exam, and candidates must pay a fee to take it. The cost is typically no more than $100, but it can vary by state. Lasting about three hours, the test ranges between 75 and 150 multiple-choice questions about material that would have been covered in the pre-licensing courses. The percentage to pass depends on the state, though generally candidates will have the opportunity to retake the test if they fail initially.
Submit an Application
After passing the exam, candidates will need to submit a licensing application to their state’s licensing authority and pay a licensing fee. The real estate license application often requires a background check and sometimes fingerprinting. It could take a couple of weeks for new agents to receive their licenses.
Agents should note that receiving a license doesn’t make them a real estate agent forever. Licenses typically last for between two and four years before an agent needs to renew them. The renewal process requires another application and typically comes along with additional education.
Find the First Job
The process of finding the first real estate job can be daunting. It is essential to research different companies and their hiring practices and pick brokerages that feel right. Be proactive and send out resumes to as many qualified companies as possible. Sometimes the best jobs are not public, so it is critical to be creative in the job search.
The most important thing is not to give up. With perseverance, the right attitude, and a little luck, new agents will eventually get their foot in the door. As commercial real estate agents, they’ll have more options than just a standard brokerage; some brokerages focus solely on commercial real estate, while others cover both that and residential.
Commercial-Only Brokerages
At a commercial-only brokerage, new agents will get a complete education on how to work in the commercial market. They’ll be able to learn from experts in the field, which will help them grow their commercial real estate skills at a faster pace than at a brokerage that also handles residential real estate.
One thing to note about these brokerages is that there’s plenty of competition, so it may be trickier to land a job, especially as a new agent.
Commercial & Residential Brokerages
Commercial agents who go for a brokerage with commercial and residential real estate opportunities are eased into the real estate business. While learning about commercial deals, they can take advantage of working in the more steady residential market.
The main drawback of these split brokerages is that the new agent won’t get as much experience in commercial real estate as they would if they worked somewhere solely focused on it.
Know the Responsibilities
Real estate agents are broken down into seller’s agents and buyer’s agents. Since they represent different sorts of clients, the details of their responsibilities are different, but the core of doing what’s best for their clients is the same. Whether the agent is at a commercial-only brokerage or one that works in residential too, the responsibilities won’t change either.
General Responsibilities
Both buyer’s and seller’s agents in the commercial real estate industry will need significant experience in property law, marketing, and negotiation. Since the point behind commercial real estate is an investment, it’s also crucial for commercial agents to have a good grasp of financial principles, including investment analysis and accounting. They should also be able to know the value of a property, both its initial monetary value and in terms of its potential for future development.
Seller’s Agent Responsibilities
A seller’s agent is responsible for finding a buyer for the seller’s property. They work to get the best price possible for the property and handle all the paperwork involved in the sale.
Commercial seller’s agents are typically responsible for the following:
- Finding potential buyers and presenting offers
- Negotiating on behalf of the seller
- Helping the seller to prepare their property for sale
- Marketing the property to potential buyers
- Managing paperwork and administrative tasks related to the sale process
In some cases, an agent may tell their client that selling the property isn’t a good idea at the time. Maybe the property should be leased out instead or just wait to sell until there’s a better market for it. During the process, the agent might also help their client manage the property.
Buyer’s Agent Responsibilities
Buyer’s agents in the commercial industry have a few more responsibilities than the traditional real estate agent. In addition to helping their clients find and purchase property, buyer’s agents must also have experience in commercial contracts, financing options, and business law. They should also have a strong understanding of the local market and be familiar with the zoning regulations in the area.
Perhaps the most important responsibility of a buyer’s agent is to represent their client’s best interests throughout the purchase process. This includes negotiating with the seller on price, terms, and conditions. A good buyer’s agent will also look for any potential red flags that could indicate problems with the property or the deal itself. All of this is even more important in the commercial industry since the clients are looking to have a good return on investment for the property.
Building a Network
When it comes to real estate, having a solid network is key. Agents who can build relationships with other professionals in the industry, as well as potential clients, can benefit in several ways. A strong network can help agents find new leads and referrals. By connecting with other agents, brokers, and lenders, they can learn about new properties that may be coming on the market or get referrals from satisfied clients.
A network can also provide support and advice. Agents will inevitably face challenges from time to time. Having a group of professionals they can rely on for advice and support can make all the difference. Keep reading for ways to build a network as a new commercial real estate agent.
Join an Association
Joining a real estate association is extremely important for new agents. By joining, agents can access resources that can help them learn more about the industry, network with other professionals, and stay up-to-date on the latest news and trends. Associations also offer opportunities to participate in advocacy efforts and discounts on continuing education courses.
The National Association of Realtors (NAR) is the largest and most well-known real estate association, but many others focus on specific niche markets or geographic areas. New agents should research which associations would be the best fit for them and their business goals.
Grow the Network
The importance of networking in the real estate industry can’t be overstated. It’s not just about meeting new people and making connectionsโit’s about developing relationships that can lead to new business opportunities. While it can seem like a slow process, the more effort agents put into developing their network, the more valuable it can be.
For real estate agents, networking provides a way to build relationships with potential clients, referral sources, and other industry professionals. It can also help them stay up-to-date on industry trends, learn about new technology and products, and get insights into the business.
While there are many ways to network, some of the most effective include attending industry events, joining professional organizations, and participating in online forums and social media groups.
Creating a Brand
When branding as a real estate agent, there are a few key things to keep in mind. The agent’s brand generally needs to be professional and accurately reflect who they are as an agent. Additionally, they’ll need to ensure that their branding is consistent across all of their marketing materials, from their website to their business cards. Parts of a brand include pieces like the name, color scheme, and logo.
The logo is one of the most critical parts of a brand because it’s one of the first impressions a client will get. It will be used on all marketing materials, so make sure that it is visually appealing and looks good in various formats. Once agents have the pieces of their brand, it’s time to start creating marketing materials. This can include anything from business cards and flyers to website banners and social media posts.
Choose a Specialty
There are many kinds of properties within the commercial real estate umbrella. To maximize their potentialโespecially at the startโagents should pick one niche to focus on. This way, they can bill themselves as an expert for anyone who needs specific help. Here are some of the different types of commercial real estate that agents can choose from:
- Office: Office buildings are properties where businesses conduct their daily operations. They are grouped into three classes (A, B, and C) based on their construction quality and surrounding area. They can also be classified by location (Central Business District or suburban office).
- Retail: Retail properties are for businesses to sell their goods and services. These properties can come in many forms and sizes, ranging from smaller strip centers to large community malls.
- Industrial: Industrial properties also span several categories, but all typically revolve around manufacturing or shipping goods. Some examples include warehouses (some focused on storage, others on distribution) and manufacturing plants.
- Multi-Family: Multi-family properties are any properties with more than one housing unit for people to live in. These are set apart from residential properties because they’re primarily used for investment. The properties range from apartment complexes to duplexes, triplexes, and quadruplexes.
- Land: Land is the one piece of commercial real estate that doesn’t always have actual buildings. Commercial land can be undeveloped, developed but vacant (known as infill), or previously used with potential environmental issues (known as brownfield).
Keep Growing
There are many reasons why continuing education in real estate is a good idea for a career. Perhaps the most important reason is that it keeps agents up to date on the latest changes in the industry. Every day, new technologies and methods are emerging to help them become more successful agents. By staying educated, they’ll be able to better serve their clients and stay ahead of the competition.
It also shows the agent’s commitment to the profession and is an investment in themselves. The more knowledgeable they are, the more valuable they are to potential employers, which could help improve earnings.
In addition to simply taking continuing education courses, there are a few ways for commercial real estate agents to take their careers in a new and exciting direction.
Learn New Skills
The real estate market is constantly changing and evolving, so it’s important for agents to continually learn new skills to stay ahead of the competition. Brokerages are always looking for agents who are knowledgeable and skilled in the latest trends and technologies, so an agent needs to be proactive in their professional development. They never know when a new skill or technology will come in handy, so it’s always best to be prepared.
Some great ways to learn new skills and stay ahead of the curve include attending industry conferences, taking online courses, and networking with other professionals. Agents need to remember that they are never done learning. The real estate industry is constantly changing, and agents who want to be successful need to change with it.
Become a Broker
After a set time (usually two to three years) of being a real estate agent, the door opens to becoming a real estate broker. A broker is a professional who can individually help people buy or sell properties. Their responsibilities are much the same as an agent, save for the fact that brokers can represent clients on their own and can hire agents to work at their brokerage if they’ve opened one.
Similar to getting a real estate license, states have different requirements for eligibility and coursework to become a broker. Agents should check their state’s information to see if they want to pursue this next step.
Go into Property Management
Maybe an agent starts to realize that they’re less interested in selling or helping clients buy properties and would prefer a more hands-on approach with the properties themselves. Property managers are responsible for the operation and maintenance of a real estate property, whether commercial, industrial, or residential. They make sure that the property is well-maintained and profitable, and they act as a liaison between the owner of the property and the tenants.
Some states require property managers to have a real estate license, so all those studying hours still pay off. Even if the education isn’t a requirement, it will set applicants apart from those who don’t.
Go into Property Development
Another path for commercial real estate agents to consider is that of property development. Instead of working with individual buyers and sellers, developers work on creating, planning, and executing the construction of real estate projects. This could involve anything from developing a new office building to overseeing the construction of a new retail center. The work can also be very rewardingโespecially when developers see their projects come to life and benefit the community.
Real estate developers generally don’t need a background in real estate, but there’s no denying that having one would help with networking and standing out from the rest.
Frequently Asked Questions
How do I market myself as a commercial real estate agent?
There are a few strategies, starting with getting involved with networking groups to have the opportunity to meet potential clients and referral sources face-to-face. Other ideas include creating a blog and being active on social media to showcase knowledge and connect with clients.
How much do commercial real estate agents make?
It depends. Commercial real estate agents typically make a commission on the sale of a property, which is a percentage of the total sale price. In addition to the commission, agents may also receive a bonus if they can sell the property above the asking price or sell it within a certain time frame.
What degree is best for commercial real estate?
Degrees related to finance, marketing, business, and economics are helpful for the commercial side of the real estate industry. That said, college degrees aren’t required to be a real estate agent. The most important requirement for being a real estate agent is to pass a state-licensed exam.
What does it take to be successful in commercial real estate?
To succeed in commercial real estate, agents need to have a good understanding of the market, find and negotiate deals, and have a strong marketing strategy. They also need to manage properties effectively and efficiently while working well with others.
Become a Commercial Real Estate Agent Today
If someone is looking for a career in real estate, going into commercial real estate may be a perfect choice. Becoming a commercial real estate agent can be a gratifying career. It offers the opportunity to work in many different environments, meet new people, and help businesses grow. The market is constantly changing, so it’s crucial to stay up-to-date on the latest trends and news. Luckily, many resources are available to help people become successful commercial real estate agents.
Building a strong foundation is the key to success in any career, and real estate is no different. Getting the license is the first step if a person is interested in becoming a commercial real estate agent. After getting a real estate license, building a network and continuing education are the keys to making the most out of a job. With hard work and dedication, just about anyone can have success in commercial real estate.
Becoming a commercial real estate agent is much like becoming a residential real estate agent. From getting a license to growing a network, the main difference is commercial real estate agents work with just that: commercial real estate. This can be anything from office buildings and multi-family properties to retail storefronts and mixed-use properties.
These agents also tend to be in more professional environments and work on transactions that take longer, though often at higher commissions. It’s also more common for commercial agents to have higher knowledge of finances and business. If these differences sound appealing, keep reading to learn how to become a commercial real estate agent and strategies for building a successful career.
Get a Real Estate License
Regardless of deciding that commercial over residential real estate is what a person wants to pursue, the first step to becoming a commercial real estate agent is to get a real estate license. Different states have different requirements, pre-licensing courses, and tests, so agent hopefuls should research the rules where they live. Most states require that applicants are at least 18 years old, while others also ask for a high school diploma or equivalent.
Take the Courses
Just like the eligibility requirements, the amount of coursework varies by state. For example, Minnesota asks for 90 hours of education, while Texas requires 180. Regardless of the hours needed, much of the material is similar. Courses that come up during the process can include:
- Principles of real estate
- Finances
- Law
- Real estate practice
- Contracts
These pre-licensing courses are meant to give people a comprehensive understanding of the real estate business and what they need to know for the licensing exam.
Pass the Test
Once done with the coursework, it’s time to take the state’s licensing exam. The format and cost of the test will vary by state, but they all measure the same thing: whether the agent is prepared to help clients buy or sell real estate. Some states offer the exam online, while others require that candidates take it in person. Candidates should check with their state’s licensing authority to determine the requirements.
Thereโs usually a proctor for the exam, and candidates must pay a fee to take it. The cost is typically no more than $100, but it can vary by state. Lasting about three hours, the test ranges between 75 and 150 multiple-choice questions about material that would have been covered in the pre-licensing courses. The percentage to pass depends on the state, though generally candidates will have the opportunity to retake the test if they fail initially.
Submit an Application
After passing the exam, candidates will need to submit a licensing application to their state’s licensing authority and pay a licensing fee. The real estate license application often requires a background check and sometimes fingerprinting. It could take a couple of weeks for new agents to receive their licenses.
Agents should note that receiving a license doesn’t make them a real estate agent forever. Licenses typically last for between two and four years before an agent needs to renew them. The renewal process requires another application and typically comes along with additional education.
Find the First Job
The process of finding the first real estate job can be daunting. It is essential to research different companies and their hiring practices and pick brokerages that feel right. Be proactive and send out resumes to as many qualified companies as possible. Sometimes the best jobs are not advertised, so it is critical to be creative in the job search.
The most important thing is not to give up. With perseverance, the right attitude, and a little luck, new agents will eventually get their foot in the door. As commercial real estate agents, they’ll have more options than just a standard brokerage; some brokerages focus solely on commercial real estate, while others cover both that and residential.
Commercial-Only Brokerages
At a commercial-only brokerage, new agents will get a complete education on how to work in the commercial market. They’ll be able to learn from experts in the field, which will help them grow their commercial real estate skills at a faster pace than at a brokerage that also handles residential real estate.
One thing to note about these brokerages is that there’s plenty of competition, so it may be trickier to land a job, especially as a new agent.
Commercial & Residential Brokerages
Commercial agents who go for a brokerage with commercial and residential real estate opportunities are eased into the real estate business. While learning about commercial deals, they can take advantage of working in the more steady residential market.
The main drawback of these split brokerages is that the new agent won’t get as much experience in commercial real estate as they would if they worked somewhere solely focused on it.
Know the Responsibilities
Real estate agents are broken down into seller’s agents and buyer’s agents. Since they represent different sorts of clients, the details of their responsibilities are different, but the core of doing what’s best for their clients is the same. Whether the agent is at a commercial-only brokerage or one that works in residential too, the responsibilities won’t change either.
General Responsibilities
Both buyer’s and seller’s agents in the commercial real estate industry will need to be experienced in property law, marketing, and negotiation. Since the point behind commercial real estate is investment, it’s also crucial for commercial agents to have a good grasp of financial principles, including investment analysis and accounting. They should also be able to know the value of a property, both its initial monetary value and in terms of its potential for future development.
Seller’s Agent Responsibilities
A seller’s agent is responsible for finding a buyer for the seller’s property. They work to get the best price possible for the property and handle all the paperwork involved in the sale.
Commercial seller’s agents are typically responsible for the following:
- Finding potential buyers and presenting offers
- Negotiating on behalf of the seller
- Helping the seller to prepare their property for sale
- Marketing the property to potential buyers
- Managing paperwork and administrative tasks related to the sale process
In some cases, an agent may tell their client that selling the property isn’t a good idea at the time. Maybe the property should be leased out instead or just wait to sell until there’s a better market for it. During the process, the agent might also help their client manage the property.
Buyer’s Agent Responsibilities
Buyer’s agents in the commercial industry have a few more responsibilities than the traditional real estate agent. In addition to helping their clients find and purchase property, buyer’s agents must also be well-versed in commercial contracts, financing options, and business law. They should also have a strong understanding of the local market and be familiar with the zoning regulations in the area.
Perhaps the most important responsibility of a buyer’s agent is to represent their client’s best interests throughout the purchase process. This includes negotiating with the seller on price, terms, and conditions. A good buyer’s agent will also look for any potential red flags that could indicate problems with the property or the deal itself. All of this is even more important in the commercial industry since the clients are looking to have a good return on investment for the property.
Building a Network
When it comes to real estate, having a solid network is key. Agents who can build relationships with other professionals in the industry, as well as potential clients, can benefit in several ways. A strong network can help agents find new leads and referrals. By connecting with other agents, brokers, and lenders, they can learn about new properties that may be coming on the market or get referrals from satisfied clients.
A network can also provide support and advice. Agents will inevitably face challenges from time to time. Having a group of professionals they can rely on for advice and support can make all the difference. Keep reading for ways to build a network as a new commercial real estate agent.
Join an Association
Joining a real estate association is extremely important for new agents. By joining, agents can access resources that can help them learn more about the industry, network with other professionals, and stay up-to-date on the latest news and trends. Associations also offer opportunities to participate in advocacy efforts and discounts on continuing education courses.
The National Association of Realtors (NAR) is the largest and most well-known real estate association, but many others focus on specific niche markets or geographic areas. New agents should research which associations would be the best fit for them and their business goals.
Grow the Network
The importance of networking in the real estate industry can’t be overstated. It’s not just about meeting new people and making connectionsโit’s about developing relationships that can lead to new business opportunities. While it can seem like a slow process, the more effort agents put into developing their network, the more valuable it can be.
For real estate agents, networking provides a way to build relationships with potential clients, referral sources, and other industry professionals. It can also help them stay up-to-date on industry trends, learn about new technology and products, and get insights into the business.
While there are many ways to network, some of the most effective include attending industry events, joining professional organizations, and participating in online forums and social media groups.
Creating a Brand
When branding as a real estate agent, there are a few key things to keep in mind. The agent’s brand generally needs to be professional and accurately reflect who they are as an agent. Additionally, they’ll need to ensure that their branding is consistent across all of their marketing materials, from their website to their business cards. Parts of a brand include pieces like the name, color scheme, and logo.
The logo is one of the most critical parts of a brand because it’s one of the first impressions a client will get. It will be used on all marketing materials, so make sure that it is visually appealing and looks good in various formats. Once agents have the pieces of their brand, it’s time to start creating marketing materials. This can include anything from business cards and flyers to website banners and social media posts.
Choose a Specialty
There are many kinds of properties within the commercial real estate umbrella. To maximize their potentialโespecially at the startโagents should pick one niche to focus on. This way, they can bill themselves as an expert for anyone who needs specific help. Here are some of the different types of commercial real estate that agents can choose from:
- Office: Office buildings are properties where businesses conduct their daily operations. They are grouped into three classes (A, B, and C) based on their construction quality and surrounding area. They can also be classified by location (Central Business District or suburban office).
- Retail: Retail properties are for businesses to sell their goods and services. These properties can come in many forms and sizes, ranging from smaller strip centers to large community malls.
- Industrial: Industrial properties also span several categories, but all typically revolve around manufacturing or shipping goods. Some examples include warehouses (some focused on storage, others on distribution) and manufacturing plants.
- Multi-Family: Multi-family properties are any properties with more than one housing unit for people to live in. These are set apart from residential properties because they’re primarily used for investment. The properties range from apartment complexes to duplexes, triplexes, and quadruplexes.
- Land: Land is the one piece of commercial real estate that doesn’t always have actual buildings. Commercial land can be undeveloped, developed but vacant (known as infill), or previously used with potential environmental issues (known as brownfield).
Keep Growing
There are many reasons why continuing education in real estate is a good idea for a career. Perhaps the most important reason is that it keeps agents up to date on the latest changes in the industry. Every day, new technologies and methods are emerging to help them become more successful agents. By staying educated, they’ll be able to better serve their clients and stay ahead of the competition.
It also shows the agent’s commitment to the profession and is an investment in themselves. The more knowledgeable they are, the more valuable they are to potential employers, which could help improve earnings.
In addition to simply taking continuing education courses, there are a few ways for commercial real estate agents to take their careers in a new and exciting direction.
Learn New Skills
The real estate market is constantly changing and evolving, so it’s important for agents to continually learn new skills to stay ahead of the competition. Brokerages are always looking for agents who are knowledgeable and skilled in the latest trends and technologies, so an agent needs to be proactive in their professional development. They never know when a new skill or technology will come in handy, so it’s always best to be prepared.
Some great ways to learn new skills and stay ahead of the curve include attending industry conferences, taking online courses, and networking with other professionals. Agents need to remember that they are never done learning. The real estate industry is constantly changing, and agents who want to be successful need to change with it.
Become a Broker
After a set time (usually two to three years) of being a real estate agent, the door opens to becoming a real estate broker. A broker is a professional who can individually help people buy or sell properties. Their responsibilities are much the same as an agent, save for the fact that brokers can represent clients on their own and can hire agents to work at their brokerage if they’ve opened one.
Similar to getting a real estate license, states have different requirements for eligibility and coursework to become a broker. Agents should check their state’s information to see if they want to pursue this next step.
Go into Property Management
Maybe an agent starts to realize that they’re less interested in selling or helping clients buy properties and would prefer a more hands-on approach with the properties themselves. Property managers are responsible for the operation and maintenance of a real estate property, whether commercial, industrial, or residential. They make sure that the property is well-maintained and profitable, and they act as a liaison between the owner of the property and the tenants.
Some states require property managers to have a real estate license, so all those studying hours still pay off. Even if the education isn’t a requirement, it will set applicants apart from those who don’t.
Go into Property Development
Another path for commercial real estate agents to consider is that of property development. Instead of working with individual buyers and sellers, developers work on creating, planning, and executing the construction of real estate projects. This could involve anything from developing a new office building to overseeing the construction of a new retail center. The work can also be very rewardingโespecially when developers see their projects come to life and benefit the community.
Real estate developers generally don’t need a background in real estate, but there’s no denying that having one would help with networking and standing out from the rest.
Frequently Asked Questions
How do I market myself as a commercial real estate agent?
There are a few strategies, starting with getting involved with networking groups to have the opportunity to meet potential clients and referral sources face-to-face. Other ideas include creating a blog and being active on social media to showcase knowledge and connect with clients.
How much do commercial real estate agents make?
It depends. Commercial real estate agents typically make a commission on the sale of a property, which is a percentage of the total sale price. In addition to the commission, agents may also receive a bonus if they can sell the property above the asking price or sell it within a certain time frame.
What degree is best for commercial real estate?
Degrees related to finance, marketing, business, and economics are helpful for the commercial side of the real estate industry. That said, college degrees aren’t required to be a real estate agent. The most important requirement for being a real estate agent is to pass a state-licensed exam.
What does it take to be successful in commercial real estate?
To succeed in commercial real estate, agents need to have a good understanding of the market, find and negotiate deals, and have a strong marketing strategy. They also need to manage properties effectively and efficiently while working well with others.
Become a Commercial Real Estate Agent Today
If someone is looking for a career in real estate, going into commercial real estate may be a perfect choice. Becoming a commercial real estate agent can be a gratifying career. It offers the opportunity to work in many different environments, meet new people, and help businesses grow. The market is constantly changing, so it’s crucial to stay up-to-date on the latest trends and news. Luckily, many resources are available to help people become successful commercial real estate agents.
Building a strong foundation is the key to success in any career, and real estate is no different. Getting the license is the first step if a person is interested in becoming a commercial real estate agent. After getting a real estate license, building a network and continuing education are the keys to making the most out of a job. With hard work and dedication, just about anyone can have success in commercial real estate.