Commercial real estate is concerned with the buying, or renting of properties used for business purposes. This includes office buildings, retail spaces, warehouses, and more. Obviously marketing these types of properties is very different than marketing residential homes to your average American. So how exactly do you be a successful commercial real estate agent?
Commercial real estate is a whole different ball game than residential real estate. When immersed in the world of commercial real estate you work with wealthy companies, corporations, or individuals willing to invest a substantial amount of money into their business properties. This leads to higher commission checks, but fewer clients than experienced in residential real estate. This difference makes the path to being successful in commercial real estate a little different than the path to being successful in residential real estate.
Work With a Reputable Company
Working with a well respected commercial real estate company should be a top priority of yours. The firm you are associated with gives you credibility. Many potential clients will not even return an email or call if you do not have the backing of a well known and respected commercial real estate firm. The name of the company you are associated with may be the number one most influential factor in whether you are successful or not. Working for a reputable company allows you to get your foot in the door and chase some opportunities.
Reliable firms provide security, and comfort to potential clients. Therefore being associated with a reliable firm allows clients to trust you to handle their multi-million dollar investments. Research the commercial real estate firms in the area you have chosen to work. Ensure you get a job with one that has a positive and strong reputation in the area. Working with a reputable firm significantly increases your chances of being successful in this field. So do not hesitate to start the interview process as soon as you get your commercial real estate licence.
Choose a Thriving Market
A big determinant of your obtainable profits in the commercial real estate industry is the specific market you are working in. If you are not working in a growing, and competitive market it may be time to consider a move. You need to be in a place that has a high potential for client recruitment and increasing profits. Metropolitan or urban areas are the place to be if you are a commercial real estate agent. They often contain thriving commercial real estate markets, with lots of opportunities for success. This is because cities are known for more business activity, higher demand, and higher fees than rural areas.
Just like in many other professions, commercial real estate gives you the opportunity to specialize in a division of the field. In commercial real estate specialties are divided by specific markets. So an example of a specialty would be urban offices, or retail spaces.
Specializing is an opportunity you should not fail to take. Committing to a specialty, and developing an extensive understanding about the specifics of that specialty, will only benefit you. Focusing on a specific market within commercial real estate allows you to become an expert in that market. Thus allowing you to close deals faster, and with more frequency.
Focus on Networking
Networking will make or break your business. Having a substantial professional network is how you will achieve success in this industry. You want industry professionals, and potential clients of your market to know you, and think highly of you. So that when a deal presents itself they think of you as the person to call. Having a strong network provides you with the opportunities you need to get ahead in commercial real estate.
Be sure to develop real relationships with the people you intend to network with. Thanks to growing social media platforms connecting, and fostering relationships with others has become easier than ever. Social media can be used in hundreds of different ways to network and connect with others. Join Facebook groups for commercial real estate agents, learn about local events for industry professionals on LinkedIn, and message people through Instagram. Simply put, the larger your network, the more opportunities to be successful you will have. So constantly be working to expand your network in order to eventually become a top producing agent.
Expand Your Skill and Knowledge Set
Most of your clients will be highly educated, and successful individuals. They will expect a lot out of their real estate agent, so that they can make the best and most informed business decision possible. This means that an extensive understanding of economics, finance, and tax law would be extremely beneficial to you in order to best serve your clients. Investing in education courses on these subjects allows you to impress your clients and earn all of their referrals. Constantly be expanding on your knowledge set. Staying dedicated to continuing your education will allow you to be as successful as you can be.
Stay diligent on expanding your skill set as well. To do this you must utilize educational opportunities. Such as coaching or courses that allow you to improve your negotiation skills, or learn the latest technology in the commercial real estate industry. An extensive skill set only makes you more valuable to both clients and employers.
Succeeding as a Commercial Real Estate Agent
Hopefully you have picked up a few tips that have enlightened you on how to be successful as a commercial real estate agent. This industry can be very difficult to get started in, but that should not discourage you. Stay committed, and never lose focus of your goals. Take all the educational courses you can, constantly be networking, and improving upon your specialty. When you put the effort in and learn the craft well, you will discover just how prosperous commercial real estate can be.