How to become a Commercial Real Estate Agent
What does a commercial real estate agent do?
Many of the duties that residential real estate agents carry out also apply to commercial real estate agents. Some of their typical duties include:
What is a commercial real estate agent?
An agent for commercial real estate works with clients to purchase, sell, or lease properties for commercial use. Investors typically own these properties and profit from them by obtaining rent from the residents of their buildings. Stores, hotels, and office buildings are a few examples of commercial real estate assets. Residential real estate, which helps clients buy, sell, or rent properties so they can live in them, is a specialty that is different from commercial real estate.
How to become a commercial real estate agent
You can follow these steps to pursue a career as a commercial real estate agent if you are interested:
1. Meet the eligibility requirements
To begin with, make sure you are qualified to register as a real estate agent in the state where you want to work. These requirements can vary but typically involve the following:
The last step is to complete the licensing training required by your state. However, the state may waive that requirement if you obtain a post-secondary real estate degree or certificate. You might need to pass a background check after completing the courses in order to be eligible to take the licensing exam.
2. Take the required courses
The same courses are needed to become a commercial real estate agent as a residential agent. Each state specifies which courses to take, with the total number of hours of study ranging from 60 to over 130. You typically learn the fundamentals of the profession, including pertinent laws, obligations as a professional, and information unique to your state.
Additionally, some states provide specialized instruction in commercial real estate procedures. There are various class formats available, including in-person, online, and independent study, with prices varying by format and state.
3. Obtain your commercial real estate agent license
You can take the licensing exam after completing the necessary coursework. There is a fee associated with taking this exam, which varies by state. You typically have three hours to finish it, and there are 75 to 150 multiple-choice questions.
Some questions on the exam vary depending on where you are because there is a national portion and a state portion. The minimum passing score may differ, but in general it’s at least 70%. You might have to wait a few weeks after taking the exam to get your results and license.
4. Find employment
Next, you can begin pursuing job opportunities. Working for a brokerage company that manages both residential and commercial real estate transactions is one option. While a residential transaction may occasionally take less than a week, commercial transactions are typically more complicated and can take months to complete.
As a result, you might need to start by concentrating on residential business. However, by engaging in these transactions, you can develop your skills and professional network while gaining industry experience.
Another option is to begin your career with a brokerage firm that specializes in commercial real estate only. These businesses frequently provide salaried training programs for staff, allowing them to concentrate on mastering the management and execution of business transactions. You wouldn’t have to worry about finding customers and closing deals right away in this scenario. Finding a job at these companies may prove to be extremely difficult due to their alluring benefits and commercial focus.
5. Join professional associations
You might need to join a state or national real estate association in order to work for some real estate companies. Instead, you might decide to join associations to establish your credibility, expand your network, or take advantage of their professional advantages. These organizations frequently provide training opportunities, ongoing education opportunities, and access to real estate tools and resources.
One such organization that provides services to both residential and commercial real estate agents is the National Association of Realtors (NAR), which is the largest trade association in the United States. Your status as a Realtor rather than a real estate agent is also conferred by NAR membership. As the association requires its members to uphold an ethics code, this certification can demonstrate your credibility and reputation.
6. Choose a specialization
You might want to specialize in a particular type of commercial real estate as you advance your career. There are numerous options, including retail, office, and industrial Your choice may be influenced by your interests or attainable financial opportunities. Your area of expertise can set you apart from other brokers and show that you are an authority on that particular class of commercial real estate. It can also help you target specific types of clients.
7. Consider becoming a broker
You may consider obtaining a commercial real estate broker license now that you have prior real estate work experience. Like a real estate agent, a broker aids clients in the purchase, sale, and rental of real estate. However, a broker also has the option to run a real estate business and hire agents. Some states also allow brokers to run property management companies. If you want to advance your career by starting and running your own business, you can do this step.
Similar to the real estate licensing exam, you must complete coursework mandated by your state to be eligible for the exam. The exam and its associated fees vary by state. This license must be renewed every two to four years, and some states require that you complete a recognized continuing education program during that time. You may also think about pursuing post-secondary education or using other resources to increase your business and finance knowledge if you intend to own a real estate business after you graduate as a broker.
Frequently asked questions
Here are some frequently asked questions about the career of a commercial real estate agent and their responses:
What is the average salary for a commercial real estate agent?
What is the job outlook for commercial real estate agents?
Commercial real estate agents do not have a specific employment outlook provided by the Bureau of Labor Statistics. However, it anticipates a 2% increase in job prospects for all real estate brokers and agents from 2019 to 2029.
This growth rate is less than the 4% average for all occupations. However, as long as people need assistance purchasing, selling, and renting properties, there will be a need for real estate professionals. The state of the real estate market can also affect real estate employment. A more robust economy results in a more robust market, which provides agents and brokers with more opportunities.
What skills does a commercial real estate agent need?
In addition to the knowledge they learned during their licensing training, commercial real estate agents can succeed by possessing a number of skills. Some of those skills include:
Agents in commercial real estate spend a lot of time interacting with buyers and sellers. Therefore, in order to effectively collaborate and develop a professional network, they need communication skills. Additionally, they need the ability to negotiate and persuade in order to manage the contracting process and give clients real estate advice.
Commercial real estate agents must be able to effectively respond to and address their clients’ concerns. These issues could come up when looking for properties or negotiating contracts. Commercial real estate agents must evaluate the situation and create solutions to meet the needs of their clients.
Commercial real estate agents frequently work alone and must prioritize their tasks and find motivation to carry out daily duties like cold calling potential clients. Their commission-based pay depends on them developing their own business opportunities. Since this line of work frequently offers flexible scheduling, agents must be proficient in time management.
Commercial real estate agents assist clients in finding properties, so they require ongoing knowledge of the market. Additionally, they must conduct research on specific listings to make sure they meet the needs of their clients, including those related to location, price, and the demographics of the neighborhood. Additionally, agents use these insights to deliver precise and individualized guidance.
What is the typical work environment for a commercial real estate agent?
The majority of commercial real estate agents work in offices, but some are able to do so from home. They must spend time away from the office as part of their job. For instance, they frequently travel to other locations to meet with clients and view properties.
Since they frequently work alone, real estate agents have some flexibility in their work schedules. Commercial real estate agents, however, typically put in 40 hours per week on normal business days. They occasionally have to work past their regular hours to accommodate clients’ needs.
What degree is best for commercial real estate?
It’s best to learn about the industry by obtaining a degree in finance or business if you want to work in commercial real estate. You must perform sometimes complex capitalization rate and return analysis as part of your job.
How do I become a commercial real estate agent in Ontario?
Prior to submitting an application for registration with RECO, you must be a licensed real estate salesperson in Ontario and have completed the Real Estate Broker Program. You must have successfully completed the Real Estate Broker Program in order to register with RECO.
How do I become a commercial real estate agent in Canada?
- Begin your real estate certification.
- Join a brokerage agency.
- Apply for licensing and take the licensing exam.
- Get errors and omissions insurance.
- Complete an articling/professional practice.
- Get your first clients.
What is a BRE license?
There are many lenders in California who must decide what kind of of license they should obtain. A license from the Bureau of Real Estate (BRE) or a California Finance Lenders License (CFLL) are the two most important licenses.