There are quite a few reasons why becoming a commercial real estate (CRE) agent is so attractive: higher commissions, career growth, exclusive clientele, fewer competitors… the list goes on! The average salary of a CRE agent is $90,914, with many agents making 6-figures yearly. Commercial real estate offers investors more stable and substantial returns in comparison to residential real estate, making it a more enticing investment.
At Millcreek Commercial, we work with inside and outside CRE agents every day. We love working with real estate professionals across the country and we also pay a commission of up to 4%! In fact, in 2020 we paid out nearly a million dollars in outside agent commissions. Nothing makes us happier than knowing we can be of service to CRE agents trying to help their clients. If you are a CRE agent, get connected with our team to start your path toward earning your commission.
If you or someone you know is interested in pursuing the field of commercial real estate, this article lays out seven steps to help you become a CRE agent. There is a lot to navigate through and the field is quite complex, so don’t stop here–learn all you can to be as successful as possible!
First, obtain a CRE agent license.
Obvious, of course—all real estate agents, whether residential or commercial, must obtain a license from the state they wish to practice in. You must meet the eligibility requirements, take approved classes, and pass the exam. The classes and requirements differ depending on the state you are wishing to work in, so do your research and be sure you are doing all that is required.
Second, find a firm!
This is crucial. Once you have a license, you must find a brokerage that is specialized in commercial real estate to gain experience in the market. Finding a firm with a positive reputation is of the utmost importance and will contribute more to your success than you might think. Representing a strong, reliable company will show your clients that you have experience, that you are knowledgeable, and that you have the resources required to help them. First impressions might not be everything, but they sure are important.
Third, join an association.
Now, this isn’t absolutely necessary, but joining an association such as NAR, ULI, or REBNY can help you in many ways. They offer continuing education and networking opportunities to help you become a successful agent. It is never a bad thing to build your network!
Fourth, find your niche.
Any person with strong business acumen will tell you that in order to be successful in any one thing, it is essential to narrow your focus and choose a specialty. Do not try to be the very best in every field—it will weaken your strengths and quite frankly waste your time. There are a few types of commercial real estate that you can choose to specialize in: office, retail, industrial, hotels, land, etc. As you grow your experience and expertise, you will find opportunities to dip your toes into other forms of commercial real estate. However, as a beginner, try to start off slow as you learn the ropes of all there is to know.
Fifth, create a marketing strategy.
An essential part of any successful business is a plan: a marketing strategy. Establishing a marketing strategy early on will help you stay organized and focused on the bottom line. It will help you plan to target clients, identify the type of properties you want to focus on, and establish success benchmarks.
This is another point that goes for any field of business, but especially applies to real estate. If you want to get ahead, you need to know how to build your network. The moment you decide your network is sufficient enough, you have missed opportunities and potential clients. Real estate is somewhat of a traditional field, where networking and “schmoozing” are a must. Be genuine, of course, but get that elevator pitch down and prepare to sell yourself to anyone at any time. Your network and client base will not grow all on its own!
Seventh, work hard.
To become successful in commercial real estate, it is going to take a lot of hard work and dedication. It is pivotal that you stay motivated and driven to find potential deals and clients. Commercial real estate takes more work than residential and typically takes a while to move. Bigger buildings, bigger commissions, bigger potential… and a bigger workload. Stay committed to your established strategy and put in the work!
Commercial real estate might take a lot of work and patience but it is WELL worth it. The world of CRE is a complex one, but determination and a strong network will help you navigate through it.