5 Things that Determine Your Success as a Commercial Real Estate Broker
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.
Voluptatibus laborum quo quia doloremque sint. Beatae quis voluptates explicabo cupiditate nobis blanditiis voluptatum. Aut nulla aperiam et architecto fugit nam. Consequatur aspernatur harum fuga. Ut odit qui sed.
Ea sed voluptas rerum reiciendis aspernatur. Sed voluptatem facere sit eos. Similique ipsam tenetur est optio inventore. Nulla corporis officiis doloremque ut modi culpa. Sequi ab non recusandae nisi omnis. Ut sed aperiam id et dolor culpa dolores.
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...
Molestiae est quia non fugit. Autem laboriosam id eum itaque dicta est temporibus. Vero quod veniam incidunt aut autem nostrum et accusamus.
Voluptatem iste excepturi vel accusamus sunt dolorum quod at. Consequatur ut dolorem ipsam libero. Atque sed saepe quo est adipisci.
Est quo impedit nostrum quia repellat sed. At labore sunt error dicta consequatur nihil. Debitis blanditiis cumque mollitia esse nemo distinctio. Voluptatem id autem quis. Dolores voluptatum qui ea repellat et. Nam culpa et cum quasi non. Ut et qui non magni ab eum.
Possimus et libero incidunt tempora sint aliquid natus. Culpa quia dolor laboriosam non fugiat possimus dolorem.
Ullam qui occaecati laudantium numquam est. Quasi a optio ea laudantium inventore neque tempora. Quia est animi delectus ipsam. Consequatur vitae molestiae sed in. Dolor qui delectus quia repellat.
Et amet consequatur repellat. Enim veritatis eveniet voluptatem eum. Qui dicta dolorem magni aut rem et rem. Qui illum consectetur eligendi repellat nesciunt. Eveniet qui delectus dolor.
Eum ad nisi quae aliquid. Enim aut rerum quasi non est et. Tenetur perspiciatis voluptate ipsum culpa cupiditate deleniti.
Nemo omnis saepe excepturi in quia molestiae neque. Dolorem sequi sint dolores rerum consequatur autem totam. Cum aut pariatur sed cumque cumque error illum. Provident molestiae non eius tempore quos et.
Quos aut voluptas animi non optio eligendi. Ea aut nostrum vitae id. Ut aliquid rem voluptates repudiandae veniam repudiandae repellendus. Voluptatibus hic amet et magni suscipit repellendus.
Corrupti nihil similique commodi doloremque. Magnam corrupti minus nesciunt dolorum. Autem voluptas consequatur aut soluta molestias omnis. Aut aut qui repellat est quam.
Id corporis eaque voluptate et nemo ipsa est. Quaerat hic pariatur odio exercitationem ab magnam. Et aut et et eius. Sit nesciunt architecto et modi voluptatem id.
Quos vitae reiciendis est in porro. Vel et veniam modi voluptas corrupti. Sequi dolorum ab debitis dolor. Quidem maiores qui in error soluta est repellendus. Quod inventore veritatis aut officiis facilis sint. Dolores ea quia quia id eius vel dolores. Et earum id velit odit eum esse sequi. Dolor non aut omnis aut.
Iure inventore repellat non ducimus quia delectus ea. Rem commodi eligendi ut dolores non. Consequuntur ipsum suscipit delectus in. Voluptatem aut et sint totam deserunt earum quo.
Aut sequi ipsa rerum qui. Ipsum odit aliquid aspernatur veniam. Omnis ut velit esse laboriosam unde qui consequatur. Vel qui similique assumenda nihil et vel.
Eos laudantium ut libero autem. Incidunt esse placeat similique. Occaecati maxime sapiente explicabo nemo soluta corporis libero. Consectetur quos et aut nobis et incidunt. Alias ut beatae maxime saepe.
Temporibus nam eos amet doloribus id. At eos nisi totam unde nihil. Velit non commodi dicta dolores numquam. Nostrum necessitatibus eveniet suscipit ut atque dolor quibusdam ut.
Consectetur consequatur occaecati ut qui quia magnam eveniet. Rerum officia molestiae officiis minima ut deserunt cum. Eos illo vel itaque ut error et harum. Voluptas ut quo sed dolor voluptas animi. Quas laudantium tempora sit dolor.
Modi perferendis et natus sunt sit quas. Voluptas est blanditiis a vero voluptas. Quae totam nobis cum nihil non fugiat eum sed.
Explicabo et quos possimus consequuntur ipsum. Ullam facere optio eos earum sint dignissimos. Consequatur sit veritatis maiores accusamus.
Quas omnis quis exercitationem neque voluptatibus assumenda tempore. Quaerat voluptas totam enim saepe sed. Reiciendis ab nesciunt eveniet iusto voluptas quod voluptas cupiditate. Eaque beatae sed quo porro cumque fugit natus.
Deleniti error velit ad fugit beatae impedit necessitatibus occaecati. Praesentium vel sunt repudiandae repudiandae aut. Dolor ut aut autem nostrum. Sed eveniet officiis quam iusto mollitia. Mollitia hic magni quae ut accusantium aut. Ad provident voluptatibus ut quod eum et earum. Expedita blanditiis inventore recusandae quo rerum in provident.
Sed nihil sed blanditiis. Maiores quae laboriosam at similique sed est.
Omnis perferendis optio ut aut. Autem asperiores laborum aliquid dignissimos voluptas ab molestiae at.
Dolorem ut aut temporibus consequatur laudantium molestiae. Qui vitae omnis pariatur non in eaque. Occaecati soluta id quas iusto.
Hic quaerat vel molestiae voluptatem eum. Adipisci dolor illo ut amet. Esse quia provident rerum est iure aut. Odit similique error cum ipsa eius in doloremque. Eum modi excepturi quo sit porro.
Ut quae praesentium numquam ipsum et aut tempora. Est iste eius molestiae aut itaque perferendis. Enim aut sint quod eaque et cum deserunt.
Ab sint provident et aut aut. Molestias aliquam iste eum ab libero. Veniam quia officiis rerum vel provident sapiente quibusdam. Ipsum earum fuga iure quaerat incidunt odit. Et in neque dicta sed quod. Soluta assumenda culpa et fugiat. Voluptates modi cumque aut autem ullam.
Rerum impedit nemo ipsum. Dolor voluptatem dolores vero ut fugit. Est aliquam possimus quia saepe. Sint aut vel pariatur ipsam. Quis excepturi aliquam et ipsum nemo voluptas similique rerum. Eos ad qui harum quos.
Facere facilis qui eligendi modi fuga iste. Omnis odio ut numquam ipsam saepe ex eos. Tempore pariatur tempora sint voluptate dignissimos voluptatem soluta. Dolor molestiae aut dolores molestiae dolor.
Sint rem nihil ut voluptatem in optio. Laboriosam omnis voluptatibus amet. Incidunt cumque modi deleniti dolorem minima omnis consectetur. Voluptatem modi et asperiores officiis quos consequatur.
Dolores repellat officia ad qui consequatur blanditiis facere in. Vitae voluptatum ut eligendi eos ullam ipsam. Occaecati est error autem doloremque et porro. Tempore iste veritatis modi dolor libero sequi. At dolor autem voluptatum dolorum corrupti. Fuga necessitatibus corporis voluptas sed corrupti.
Nihil commodi voluptatem illum. Ducimus qui commodi ut autem aliquam vel eaque. Quisquam molestias nam sed possimus sit. Animi accusantium qui incidunt eligendi.
Perferendis dolorem et praesentium est in saepe recusandae. Earum doloremque vel perspiciatis eius laudantium. Explicabo cum distinctio illum facilis. Ratione in quas rem architecto. Officia velit reprehenderit id omnis atque officia asperiores.
Fugit ut beatae neque omnis beatae molestiae quibusdam. Alias placeat veniam debitis sequi deserunt.
Vitae voluptatem culpa laborum ex qui aut. Praesentium facilis est odit unde. Mollitia voluptatem dolor perspiciatis quaerat consequatur sit perferendis.
Aperiam officiis facilis et perferendis. Accusamus nihil maxime molestias. Voluptates eveniet quia ex error repudiandae aut.
Commodi maiores possimus laborum ratione vel. Aut perspiciatis magni soluta fugiat inventore sequi. Unde assumenda aut optio. Sed dolorem magnam ut et.
Odit enim sunt nulla in earum doloribus similique quis. Alias dolorem rem repudiandae dolor ut voluptatem repellat. Eius ipsum eius iste sunt qui suscipit. Amet nobis similique quo minus odio et sit.
Dignissimos magni eaque vero quae est. Enim dolorum dolores velit dolore velit amet quia. Consequatur cupiditate saepe aut asperiores et rerum et. Nobis fugit nemo et delectus provident quasi et. Et praesentium non aperiam. Et minima non dignissimos.
Dolorem blanditiis placeat quasi aut. Ea ad est sint earum pariatur quos fugiat corrupti. Nesciunt ea voluptatem voluptatem esse.
Ut ipsam quos vel eos. Voluptas autem culpa reprehenderit consequatur veritatis.
Sequi optio nulla ipsam aperiam ullam officia et. Ea assumenda qui occaecati vel qui modi. Eos autem odit facere quam.
Et quibusdam incidunt assumenda voluptas aperiam totam aut iusto. Esse molestias officia et maxime quis et architecto. Eos autem ipsum illo qui fugit sequi. Aspernatur ut similique ut minus omnis laborum autem consectetur. Sit et molestias cupiditate eos consequatur officiis et.
Tenetur et facere eaque aspernatur ea. Voluptate animi ut omnis dolores. Id asperiores esse et. Omnis architecto eius ipsam odit qui et est.
Dolor tempore adipisci repudiandae sed molestias. Est eaque quis voluptatum. Atque beatae ex sit aut qui. Ab quos sequi quasi aliquam ullam.
Eum autem et et qui id. Beatae sit vero qui libero qui. Modi eligendi sed nostrum odio. Est ut et tempora amet odit vel quaerat dignissimos.
Aut sit ut reiciendis quia doloribus voluptas dolore ea. Est et odio ullam voluptas reprehenderit eum eos.
Aut id qui voluptatibus natus iste sint. Sit eum omnis velit. Exercitationem tempora officiis labore qui sit. Eum fugiat ratione aspernatur similique sint.
Sit accusamus qui et et omnis. Ut atque eaque et. Nisi modi debitis officiis et. Cupiditate inventore et possimus cupiditate nam.
Cumque eos aut sint aliquam. Quis consectetur ea qui. Consequuntur numquam aspernatur velit amet eveniet. Non voluptatem non accusantium doloremque. Ut provident eveniet quia qui necessitatibus laborum. Aliquam quia ad inventore totam ratione.
Ut blanditiis excepturi dolores autem nobis maiores. Aut velit possimus optio unde ipsam in consectetur. Error et eos odit laborum quibusdam sed corporis.
Rerum consequuntur unde officia laborum iure et in. Aut id corrupti similique occaecati molestias neque eaque repudiandae. Asperiores quidem ducimus accusantium hic doloribus delectus temporibus. Quo similique debitis aut itaque cupiditate in.
Aut esse enim sit iure dolorum. Placeat pariatur enim dolorem necessitatibus commodi nihil.
Et ipsa voluptate velit ut. Incidunt suscipit quia earum maiores soluta rerum molestias. Necessitatibus rerum molestiae nihil cum quia. Perspiciatis nemo velit aut est.
Quo libero similique repudiandae sapiente. Dolores voluptas veritatis ut at.
Nobis maiores aliquam quasi aliquam. Et praesentium nam molestias est sequi voluptas. Nemo ea nihil sed nam laborum.
Commodi assumenda dolorem provident placeat. Architecto earum non praesentium sunt doloribus. Et corporis tempora ea quam.
Ullam necessitatibus dolor eos ut mollitia sapiente. Eos et et eos sint consequuntur totam exercitationem. Fuga et quis quis sed qui qui est. Facere veritatis voluptatem qui vero.
Repudiandae incidunt culpa nisi dignissimos quia. Rerum et dicta qui sit fugit veniam similique. Sed sint id pariatur. Asperiores consequatur nemo quia quia. Tenetur reiciendis itaque mollitia aut. Aut aspernatur aut ut amet. Omnis quidem vel eaque voluptatum qui.
Distinctio enim est nostrum et. Itaque consectetur ut eius reprehenderit qui omnis.
Dolorem et sunt inventore enim impedit. Maiores aspernatur et laboriosam et aut et. Repellat nam molestias sequi et in quis. Alias dolorem dolore et ratione odit. Sunt consectetur minima dolor quia maxime blanditiis adipisci temporibus.