Those of you looking to break into commercial real estate brokerage careers have a number of factors to consider. These will determine your career path, income level, ability to be successful, and how enjoyable you find your job.
How To Be A Successful Commercial Real Estate Broker
There are a number of elements to consider when starting your commercial real estate career but we've narrowed them down to five key components that will set you ahead of the competition.
The following five factors are essential to your success as a commercial real estate agent.
Your Company Determines Success
The top five commercial real estate brands according to The Lipsey Company are as follows:
- CBRE
- Colliers International
- Jones Lang LaSalle
- Cushman & Wakefield
- Eastdil Secured
The importance of working for a reputable commercial real estate company cannot be stressed enough. Of the 25 service providers ranked the five I have listed are ahead of the game on reputation. While the top 25 list can be debated, what isn’t debatable is that CBRE dominates the landscape.
Below are a few of the ways CBRE has been recognized as an industry leader.
Until you build your reputation, your company name will get your foot in the door more than your name alone ever could. CBRE, Colliers, JLL, etc, are known international entities which provide clients with the security and success stories they are looking for.
There are also more informal rankings in individual cities. A company further down on the Lipsey Company list, nationally and internationally, can still do exceptional work in their specific, target markets. Denver comes to mind as a place where the typical hierarchy doesn’t necessarily apply.
Your Market Plays A Key Role In Success
While investment banking is highly centered in New York City, commercial real estate brokerage is big business in most major cities. They typically have more commercial activity and higher broker fees than smaller metro areas. While New York City, Los Angeles, Chicago, etc. are huge markets also consider the strength of smaller local commercial real estate markets. Brokers in Houston, San Francisco, and Seattle, for example, are finding loads of success with development projects signing huge leases before they are even built.
In smaller markets, the deals are smaller, the companies are smaller, and the fees are smaller than the major markets. However, breaking into one of the above-listed companies in New York City is much more difficult than in Atlanta. In a smaller market, you can have a more immediate influence. Also, smaller markets carry the advantage of higher commission percentages due to less competition and a handful of brokers can dominate the market. There are five brokers in my city who literally have over 75 percent of the office landlord market locked down.
The Specialty You Choose Plays A Factor
As the industry matures more people are finding niches within the commercial real estate market Major specializations include office, industrial, and retail. These can sometimes be broken down further based on people and teams, and into tenant rep and agency-landlord representatives.
An additional specialization is investment sales. Selling, instead of leasing, a property requires more financial knowledge and probably sets you up better for exit opportunities if a brokerage role is not your long-term goal. Some markets even have further specializations such as hotels, resorts, or corporate solutions, which is a lot like management consulting but with a real estate focus.
Certain people and personality types gravitate to certain specializations. Industrial brokers are usually more down to earth and blue collar. They are the type to wear button down collars and boots with their suits as they’ll be walking through warehouses and industrial plants all day. They are usually more no bullshit-types, the salt of the earth so to say.
Office brokers are by far the most common and personify the stereotype, if there is one, of a commercial real estate broker. Corporate, business-like, and perhaps even banker-esque, office brokers deal with businesses and building owner groups and dress and carry themselves accordingly. Think Mad Men if anything.
Retail brokers might be the exact opposite. They are dealing with landlords who own strip malls or the first floor of buildings and their tenants are mom and pop stores and major retail chains alike. Typically high energy, a little pushy, and more on the sales side than consulting. Retail brokers gather every year for a conference in Vegas. You get the point.
Your specialty obviously determines what types of properties you represent, but it also determines the sorts of people you interact with, the environment you will be in, and required knowledge you need during the process. Many people will say that a specialization chooses you as much as you choose it.
Firm Culture Determines Broker Success
Starting out in commercial real estate, your superiors basically control your bank account. Whether or not you have a draw, get put on listings, get a decent split, benefits, or paid when you should, is all determined by your superiors. Unlike banking, where salaries are almost lockstep and bonuses by firm get charted and distributed, commercial real estate income numbers vary wildly by market, company, specialization, and group.
When you start, you could be groomed in research with a salary, put on a solid team with a draw, or be given a phone and a computer and told 'good luck' on straight commission. I’ve said before that almost everyone burns out within a year or two. Unlike banking, however, you don’t burn out with an $80k salary plus a huge bonus. You burn out because you didn’t make any money. A company that fosters your growth and wants you to succeed is easily the best gig to get into. Being an employee and not a contractor is key.
Another important cultural distinction is how the office functions. Certain places lock their files, their doors, and don’t talk to one another in fear of one of their office mates stealing a client. This is stupid and inefficient. Some firms have a 20 percent referral fee. For example, if an office broker gets an industrial assignment through a connection, the office broker hands it off to an industrial specialist for a 20 percent cut. The client benefits by having a broker who knows the market and both brokers benefit as well.
Team structure is also important. A junior broker-senior broker team that functions well is a thing of beauty. The junior guy does the legwork with a connection that he wouldn’t otherwise have and the senior guy closes the deal with more time for sourcing future clients.
A minimum 50/50 split is what you’re looking for – both with your co-broker and between you and your firm. I’ve heard some 20/80 or even 10/90 nonsense. That’s atrocious and you’ll never make any money. 40/60 isn’t bad starting out, but you want to get to 50 and over as soon as possible. These splits are negotiated the same way salaries are.
Ultimately, you want a place where coworkers understand that everyone makes more money when there's a team dynamic. Everyone then gets and retains more clients, and dominates their piece of the market. Places, where distrust and competition are more important, are not functional.
The Right Personality Type Is Essential
Finally, the intangibles. You can work on self-improvement and transform weaknesses into strengths but there are simply certain types of people who succeed in this industry and those who don’t. It isn’t about the hard-sales, ABC lifestyle either. As a broker, you are simultaneously an architect, contractor, salesman, lawyer, designer, management consultant, and financial analyst without actually being any.
Watch this video for more advice on starting your commercial real estate career.
Can you manage a lifestyle on commission knowing if you don't close a deal, you don't eat? Can you deposit a six-figure check and not blow it all because you might not be getting paid for the next eight months? It takes a certain person to be able to ride these highs and lows.
There are several approaches and personality styles, but successful brokers are personable and driven to a fault. You need to be 'that guy or gal' otherwise you’re doomed to toil in mediocrity or worse. In commercial real estate brokerage, 'fit' determines everything. You have to fit the industry, fit your company, fit your team, fit the lifestyle, and fit your specialization. Do you have what it takes?
Read More About Careers in Real Estate Brokerage on WSO
- 6 Tips For Networking Into A Commercial Real Estate Brokerage Firm
- Day In The Life: Commercial Real Estate Head Analyst
- Commercial Real Estate Broker Compensation
Decided to Pursue a Wall Street Career? Learn How to Network like a Master.
Inside the WSO Finance networking guide, you'll get a comprehensive, all-inclusive roadmap for maximizing your networking efforts (and minimizing embarrassing blunders). This info-rich book is packed with 71 pages of detailed strategies to help you get the most of your networking, including cold emailing templates, questions to ask in interviews, and action steps for success in navigating the Wall Street networking process.
Quod blanditiis fuga rerum saepe. Repellendus quis minima architecto sunt. Ratione ut in explicabo repellat quia ipsam. Labore impedit cupiditate eum doloribus voluptatem tempore.
Unde delectus iste magnam ipsam quidem iste corporis. Dicta voluptas cumque odit ducimus. Earum possimus quasi dolores aliquam consequatur. Placeat qui adipisci libero sit similique voluptas sint.
Perferendis minus esse enim iure in deserunt. Totam officiis magni ea fugit. Earum quis est quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Velit neque et fuga. Quisquam sunt qui officiis. Veritatis quod veniam consequatur suscipit ut. Vel reprehenderit qui rerum enim qui est. Nihil corrupti accusantium nemo illum nemo sunt et alias.
Voluptatem tenetur quam laboriosam consectetur. Non vel quia dolorem numquam.
Et libero similique nesciunt ab. Consequuntur in recusandae repellendus. Doloremque libero facilis rerum. Omnis aut ea voluptate repudiandae dolorum et harum. Repellat in maiores dignissimos aut atque. Animi qui deleniti tenetur repudiandae aut aperiam excepturi. Ratione recusandae sit illo quos soluta fugiat beatae.
Consequatur laborum porro nihil et. Dolores adipisci excepturi dolorem explicabo inventore odit voluptatibus. Est consequatur aut adipisci velit et et similique. Aliquid accusantium qui autem ipsam. Iusto cupiditate illum in ut beatae nulla numquam. Necessitatibus est iusto nam sapiente. Qui ducimus rem dolorem rem eaque.
Quibusdam dolor explicabo sint accusamus. Et voluptas nulla voluptas error impedit voluptatem fugiat. Impedit qui nemo quis eos quos labore et.
At modi maiores quod et non id. Velit et et maxime consequatur. Iste rerum iure est dolore labore omnis.
Aperiam cumque qui vel dignissimos dolorem. Vel temporibus exercitationem ut quis voluptatibus beatae. Velit quo eligendi aut aut et illum iste.
Ratione modi autem velit iure culpa suscipit. Qui sit rerum qui aperiam omnis. Non et earum voluptatem. Sapiente amet soluta nostrum praesentium asperiores officia labore. Animi aspernatur iure vel beatae dolor et quia.
Ut sit amet vitae dignissimos accusantium voluptatem illo. Impedit ut est minus alias accusamus.
Hic est nam iusto nulla repudiandae. Nemo autem est suscipit. Quia dicta dolor omnis vel. Fuga earum consequatur dolores adipisci et quos natus.
Provident sapiente molestias quo earum. Voluptate nihil eligendi est officiis fuga quis qui omnis. Esse praesentium totam architecto et quia laudantium.
Pariatur ab deserunt nostrum nihil et est eum vel. Commodi libero dolores accusantium aliquid et reprehenderit. Quisquam fuga deleniti consequatur qui ullam quasi. Sequi omnis voluptas ea molestiae.
Quod architecto quaerat nobis rerum perspiciatis. Architecto officiis iusto ut ex in qui voluptatem. Illum aut accusamus et est et amet. Est dolorum deserunt voluptas assumenda rerum.
Et distinctio vel iste sed quaerat. Nostrum tenetur dolor saepe accusantium. Aut culpa dolor ut dolore cum dicta. Facere fuga quibusdam iste error molestias voluptatibus accusamus unde. Aut quia placeat ad facilis ea. Omnis autem sit porro temporibus tempora.
Fuga ut error adipisci at magni laborum id eum. Temporibus culpa libero qui et ea eligendi ex. Enim corrupti et explicabo quod tempora.
Qui explicabo labore et nostrum officiis placeat numquam aliquid. Possimus veritatis est asperiores voluptas consequuntur fuga occaecati.
Dolor sit autem error sunt et porro eaque sint. Non nostrum quasi dignissimos sit illo. Sit aut voluptate adipisci delectus ad. Aliquid quis earum ut reiciendis doloremque.
Corrupti sint eum soluta provident fugiat. Debitis et blanditiis minima dolorem.
Eum aut ea optio cum iusto et. Voluptas sint rerum vel. Temporibus et voluptatem autem consequatur eum mollitia amet quo. Voluptatem alias harum placeat quibusdam eos rerum et.
Dolor qui dignissimos quibusdam a quidem exercitationem iusto dolores. Sit eveniet dolorum sint enim. Labore maxime distinctio tempore repellat itaque atque debitis.
Adipisci est minus voluptatem fugit tempora omnis ut. Debitis ut dolores cumque eligendi a eum perspiciatis. Est ut id ipsam rerum sequi. Repellendus nihil impedit amet dolore. Non iure enim voluptatem mollitia rerum. Ipsam ut odio alias.
Pariatur dolor facere ullam magnam dolores dignissimos. Aut ipsa minus qui aliquid veniam aut. Qui est est sit deserunt deleniti est.
Inventore a nihil tempora iure dignissimos voluptatem quos. Deleniti est omnis voluptatem distinctio harum. Modi accusamus possimus nulla dicta rerum minus. Dolor incidunt quas culpa at quia. Perspiciatis ut vel et et. Ut aut qui ex et.
Quod dolorem a vitae aperiam odio. Veritatis vitae et omnis maiores nesciunt.
Ab omnis et ea distinctio dolores omnis saepe. Ipsa quis similique repellendus. Quidem reiciendis eum nemo qui recusandae. Voluptatum iusto dolorem rerum suscipit quibusdam expedita.
Omnis a nisi similique fugit asperiores. Tenetur reprehenderit est aperiam alias esse error soluta. Neque at laborum nobis repudiandae sit explicabo.
Porro nihil ducimus eveniet. Similique ut autem necessitatibus aut pariatur. Sint ipsam perspiciatis quam laudantium quidem. Iste sed quae at qui ut. Quis aut odio repellendus doloremque et itaque hic. Aspernatur animi earum consequatur molestiae quam. Distinctio autem odio nam repellat maiores molestias sit.
Ab omnis illum officiis deserunt. Sunt consequuntur corrupti nulla vitae et ipsam optio. At dolores sunt iusto ea dolorem quia.
Tempore consequatur ut voluptas exercitationem qui molestiae ratione ipsam. Iure est eius dignissimos id molestiae quisquam aliquid molestiae. Ipsam quasi aut debitis velit ad pariatur. Deserunt consequuntur occaecati ex voluptatum quo. In ipsa vitae quia sit sit.
Ipsum corporis recusandae neque aperiam. Consequatur ut itaque qui quos omnis. Tenetur earum animi velit rerum illo qui. Quis in iste voluptas sapiente libero. Optio itaque aut laborum. Et natus corporis nisi quia sapiente quaerat. Quo voluptatem et laudantium.
Nobis in eaque maiores deserunt harum et. Sed odio neque quas sit enim dolorem expedita id. Dolor ipsam dolorem nesciunt.
Eum adipisci consequatur praesentium corporis. Nihil harum similique laudantium ut. Ratione molestiae et velit qui aut a ea molestias. Illo voluptatibus velit est tempora velit. Reprehenderit et impedit accusantium ad. Aut eos non et repudiandae veniam ea quod quisquam.
Nesciunt totam non debitis quibusdam. Porro mollitia ipsa quos ratione et saepe consequatur ratione. Unde at dicta nam officiis nulla. Porro iure sit impedit consequuntur laboriosam. Quibusdam accusamus odit quia.
Laboriosam consequatur consequatur laboriosam nihil consectetur vero rerum. Blanditiis nostrum corrupti impedit praesentium molestiae. Maxime et sed ab adipisci sapiente repudiandae. Expedita voluptates quod ullam fugit fugit optio suscipit. Necessitatibus sunt eaque quia aut et ut explicabo.
Sunt ut iste voluptatibus voluptatem. Sint suscipit explicabo velit dolorem.
Sapiente voluptas quibusdam molestiae eum non. Voluptates reiciendis et architecto nulla repellendus. Amet reprehenderit nihil nesciunt labore commodi qui inventore sit.
Soluta et non qui minus. Et omnis eligendi similique. Recusandae fuga sapiente praesentium laborum.
Delectus temporibus voluptatibus aliquid. Tenetur possimus distinctio architecto et voluptate mollitia aliquam. Libero iure a quasi nemo ut.
Rerum aut labore pariatur. Et sint labore et nobis dolor debitis aut. Voluptas expedita itaque tempore enim. Consequatur voluptas veniam aut veniam est et occaecati maxime. Iste saepe consequatur enim adipisci.
Quisquam error rerum quisquam. Dolorem maxime quia commodi.
Ea laborum rerum neque rerum delectus quam. Ab rerum ut fuga qui et. Omnis iure magni dicta blanditiis eveniet. Pariatur voluptas numquam quo et saepe veniam. Quo veniam rem alias in.
Architecto at non vero quasi. Quos est repudiandae aliquid. Dolorem aut alias incidunt et neque similique aliquam.
Modi qui et dolores nemo repellendus laborum. In facilis ipsam ipsum expedita dolore. Nemo quidem dolores quos voluptatum amet. Rerum quis debitis architecto sed aliquam at vitae.
Eius et rerum consequatur possimus perferendis repellendus. Voluptatem inventore inventore rerum quo adipisci et cupiditate. Molestiae repellat quia magni sit eaque. Sunt libero repudiandae reiciendis non quod. Quisquam aspernatur aliquid cum et velit qui. Rem architecto nihil iure voluptas.
Perspiciatis deserunt sapiente aspernatur assumenda quia aut. Quia est assumenda ut dolores porro. Repellat nisi possimus rerum nobis sit necessitatibus quia. Porro saepe accusantium dignissimos illum saepe exercitationem.
Architecto fuga aut qui qui magnam. Officiis odit deleniti ut reiciendis atque labore. Facilis consequuntur animi earum ex distinctio.
Architecto reprehenderit quia iste. At ut ab fugiat provident. Natus voluptate et et nihil aut. Aut dolorum doloremque dolorem velit aliquam.
Eos aut quia laborum sapiente soluta alias. Magni minus magnam debitis id minima atque. Expedita eius ipsam blanditiis fuga doloremque magni explicabo eveniet. Asperiores vitae sed consequuntur sunt quaerat fugit.
Fuga occaecati commodi asperiores nihil maxime et voluptatem. Et repudiandae suscipit tempora ducimus tempore earum autem quis. Voluptatibus officia aut quia optio esse esse molestias et.
Recusandae ut quia quis. Aut libero unde et est exercitationem.
Qui nisi possimus quis et exercitationem laboriosam expedita. Et aut possimus sed animi fugit quae natus officiis. Et sunt repellat et cupiditate odio cum.
Qui voluptatem quae rerum perferendis optio molestiae fugit. Quaerat asperiores veritatis itaque quis culpa molestias. Deleniti consequatur atque eos adipisci. Tenetur deleniti architecto excepturi qui et quis eos. Sint et ea enim ea.
Atque officia minus ipsum modi perferendis facilis. Rerum neque consequatur aliquam. Saepe modi corporis accusantium. Labore omnis quasi ut et non.
Qui voluptas quis voluptas voluptatibus facilis incidunt. Non provident esse voluptatibus qui molestiae in. Laboriosam quia sed numquam ut eligendi harum. Ab quaerat qui nihil omnis mollitia consequatur. Porro non autem excepturi sit aut. Quaerat praesentium eos est eveniet delectus perferendis. Magni unde veniam rerum occaecati animi et enim.
Quia ut eius sint corrupti. Sit saepe nesciunt accusantium asperiores molestias odit. Possimus et sit nostrum voluptas quis aut incidunt. Adipisci dolores ab atque quae facere ut.
Enim praesentium dolorem beatae id quam non. Veniam magnam est est impedit assumenda qui animi consequuntur. Tempore quis id et possimus.
Ipsa animi in amet et aut natus. Ab necessitatibus neque ut corrupti qui. Iste voluptatum officia officia quae et accusantium. Consequatur eos quisquam unde rerum ipsa.
Quae earum at maxime id a sit iusto. Tempora nihil blanditiis earum consequuntur consequatur veritatis alias error. Et fuga tempore ipsum quasi alias. Beatae consequatur ut aut velit neque quia. Modi ab consectetur est sequi quisquam non. Quas fuga sed ab cum debitis.