5 Steps to Becoming a Commercial Real Estate Agent

Becoming a commercial real estate agent offers exciting opportunities to work with business clients and navigate complex, high-value transactions. However, getting started in this field requires specific steps, including obtaining the proper education, gaining market experience, and building a professional network. 

What is a Commercial Real Estate Agent?

Commercial real estate agents specialize in properties intended for business purposes or financial gain. They assist clients in locating spaces and ensuring they meet their operational needs, such as location, visibility, accessibility, market trends, budget, and lease structure.

Unlike residential real estate agents, who focus on homes and living spaces, commercial agents deal with warehouses, office sites, retail spaces, land plots, or other large-scale investments. They must also navigate more complex transactions, requiring specialized knowledge and insights.

How to Become a Commercial Real Estate Agent

Breaking into the commercial real estate game is no small feat. It requires education, professional licensing, and strong networking skills. Even after connecting with clients, agents must continuously research economic trends and property valuation methods to perform well.

Step 1: What is the Role of a Commercial Real Estate Agent

Understanding what you’ll deal with daily as a real estate agent is crucial before committing to the investment. All professions have good and bad aspects; just one pain point can turn a career into a nightmare.

We can’t encapsulate the entirety of what you’ll run into as a commercial real estate agent, but the general duties include the following:

• Advising Clients: Helping businesses and investors make informed purchases means explaining the small details. This often entails constant and repeating questions, requiring patience and social aptitude.
• Market Analysis: Businesses must know how a location will benefit their operation. Agents provide concrete evidence of these benefits by collecting data on nearby businesses’ performance, demographics, and geographical advantages. By also reviewing the property's history, businesses can gain insights into past ownership, usage, and any potential risks, further supporting their decision-making process with relevant factors.
• Advertising: Real estate agents must be comfortable pitching their services through self-promotion or outsourced campaigns. A common tactic is cold-calling business managers, allowing agents to gauge interest in a pitch.
• Overseeing the Sale Process: Selling or leasing a commercial property is involved. It doesn’t end at a showing and a handshake. Agents must facilitate sales by managing inspections, viewings, meetings, and financing options.

Step 2: Complete the Education and Licensing Requirements

Commercial real estate agents work with massive sums of money. Obtaining a real estate license proves their trustworthiness and competence to business owners and managers. The requirements vary between states, but all agents must be licensed for the state they plan to work in.

Licenses are distributed through the state’s real estate commission or equivalent department. The application requires people to provide proof of completion of various state-mandated courses such as “Principles of Real Estate” or “Real Estate Finance.”

These courses are often covered while getting a real estate degree and can be satisfied via a transcript evaluation. They can also be completed as standalone courses for those outside of school.

This means that a real estate, or any college degree, is a relatively easy requirement for obtaining a commercial real estate license. However, even a two-year degree in a related field like finance, law, or business gives new agents a better chance at connecting with brokerage firms and clients.

Step 3: Learn the Market

Navigating the commercial real estate market is essential to success. Many agents specialize in areas such as office spaces, industrial complexes, or land sales. This tactic helps professionals stay more organized and create a focused client list.

Massive amounts of knowledge and experience go into creating a reliable marketing strategy. New agents must learn the value of existing listings, what businesses look for, and what sales methods are most successful in their specialty.

Learning this information is why most people initially work under an established CRE firm. Doing so allows fresh faces to learn the field without risking their livelihood.

Step 4: Build Your Network and Client Base

Networking is a required skill in real estate. It helps professionals connect with new clients, update themselves on new trends, and build a reputation. Additionally, agents work closely with various professionals, such as lawyers, vendors, and contractors.

1. Attend Industry-Related Events: Online and offline conferences and seminars make meeting others in the field easy. They present an excellent chance to learn from others and prove your expertise, memorizing key figures to partner with in the future.
2. Join Professional Organizations: The National Association of Realtors and Real Estate Educators Association host events and provide helpful tools for breaking into the field. However, they are resources, and it’s up to members to utilize them.
3. Utilize Social Media: Platforms like LinkedIn and Facebook offer specialized real estate groups to locate partners and seek advice. While groups may have thousands of members, a small population of active participants will leave comments and advice. Engaging with these people is an efficient way to make connections.

It’s important to remember that first impressions are only as good as the connection they form. You can have a sparkling conversation at an event, but the relationship must develop into something concrete. Consider sending a follow-up email to discuss action steps based on your discussion.

Step 5: Continue Developing Your Skills

Commercial real estate agents must stay informed about tax law, economic cycles, and other nuanced financial topics. This requires agents to be vigilant and active in the industry, attend educational events, and frequently consult lawyers. Additionally, they can calculate property taxes online to provide clients with accurate financial insights during transactions.

As a commercial real estate agent, you may close fewer deals than your residential counterparts. However, the complexity and payout of these sales are more satisfying, personally and financially. The more significant stakes also mean that the job requires increased dedication, education, and social skills to build a strong network.