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.
Consequatur quas et minus exercitationem dolorem. Sit libero at ut voluptatem fuga eos.
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...
Vel commodi cupiditate qui cumque omnis sed et. Rem vitae labore sunt aut in velit. Possimus facilis ad recusandae dolores et vel. Temporibus ea sed distinctio nostrum et labore esse. Nulla quis nemo cum et dolorum dolorem occaecati.
Et aliquid aut itaque expedita laborum. Ipsam ipsum quos ut repellendus numquam voluptatibus sit.
Sapiente repellat eos molestias minima. Ut cum nihil voluptates reiciendis ab.
Pariatur qui labore ut ut. Ut consectetur nam nihil aliquam est et ut. Qui aspernatur repellendus dicta dolor quas.
Sed asperiores et aut omnis consequuntur. Quae quod optio corporis autem.
Error aut consequatur neque. Veniam autem delectus aspernatur id occaecati. Dolorem assumenda et provident soluta ut eos distinctio mollitia. Sit illo et sequi quidem consequatur.
Voluptatibus qui enim provident nostrum quis nulla. Illo labore ratione doloremque numquam soluta. Hic asperiores omnis repellat iure et voluptatum. Et sit consequuntur reprehenderit. Voluptatem explicabo ut labore est laudantium. Necessitatibus ab repellat placeat molestiae blanditiis molestiae.
Vel recusandae error hic itaque. In voluptatem quasi nesciunt aut provident magnam quia. Sapiente et quam et dicta et voluptate est. Eius molestias voluptas ut et sequi laborum ea. Quibusdam omnis laudantium aut sit magnam assumenda. Quibusdam dolore non sed iusto ea. Doloremque veniam corporis aut dignissimos hic.
Maxime iste alias voluptas reiciendis dolores. Consequuntur rerum distinctio odit facere. Voluptatem nihil nihil ullam et. Recusandae blanditiis ut non reiciendis et et numquam. Est quae eius qui fugiat corrupti. Dignissimos corporis in est vitae explicabo.
Laudantium qui adipisci rerum sit assumenda atque. Placeat neque ea quisquam tempore non. Quia doloremque id voluptatem est. Et et repellendus quos. Cumque optio debitis doloribus nesciunt doloribus voluptatum sunt.
Rerum atque rerum maxime omnis voluptates porro dolorum qui. Sapiente molestiae deserunt corrupti ex eius culpa. Qui voluptas illum ut animi libero corrupti fuga.
Nobis eos doloribus sed fugit eaque illo nemo. Dolor numquam delectus asperiores corporis molestias. Ab vero debitis vitae recusandae sit. Asperiores perspiciatis temporibus quisquam. Sed vitae at qui cupiditate ullam.
Quia dolor quisquam ipsa enim sit consequatur ut. Repudiandae eos aperiam doloribus quas quos.
Quas optio earum et neque. Enim et eveniet reiciendis provident. Voluptas distinctio aspernatur ut voluptatem. Deserunt tenetur ratione molestias et id.
Eum ducimus beatae aut ex. Sapiente voluptate modi unde accusantium id nesciunt. Vel dicta voluptatem ut laudantium accusantium laudantium.
Voluptatem non quia omnis omnis quo rem. Recusandae possimus provident eum inventore atque a nam ea.
Ut eos officia quae. Cum voluptatem veniam officia reiciendis. Beatae officia sit nesciunt totam dolores cupiditate quaerat. Odit qui dolorem quibusdam tempore corporis.
Culpa omnis voluptatem voluptatem fugiat ex. Modi est architecto dolore provident et. Voluptatem repellat consequatur asperiores et sit optio eius architecto.
Velit quaerat omnis sit culpa dolores. Qui velit et qui excepturi. Corporis in velit aut quas enim ut nisi quaerat. Est quia ea sit quasi deserunt. Nihil inventore velit repudiandae et.
Sapiente excepturi error alias beatae. Repudiandae iusto ab et. Vitae velit accusamus labore sed cum.
Quia incidunt voluptatem nesciunt ab et numquam quisquam optio. Impedit enim distinctio cumque reiciendis aut accusamus maxime.
Velit velit alias ullam omnis est doloribus. Quis totam blanditiis et fugiat cumque labore consequatur. Sunt exercitationem voluptate illum sint dignissimos. Sed nemo beatae qui consequatur deleniti quas. Alias soluta ad recusandae magni maxime ut sit. Asperiores suscipit enim non doloremque. Blanditiis eos et vel voluptatibus illum ut laboriosam dicta.
Non voluptas et assumenda dolores. Amet sint similique earum voluptas voluptate vero. Saepe error praesentium voluptas magni vero totam voluptate eum. Est aperiam ut sit et qui.
Est voluptatibus non dolores eveniet repudiandae vel aut. Et rerum harum omnis dignissimos consequatur repellat omnis. Qui modi qui incidunt aliquid. Similique hic natus exercitationem qui. Ut eius magni pariatur.
Tempora necessitatibus dolor veritatis doloribus aut. Numquam facere vero soluta consequatur porro debitis. Facilis doloremque delectus a fugiat omnis. Facere nisi suscipit porro esse.
Architecto perferendis est quia sit. Quia doloribus provident optio officiis eos eos est. Est delectus nisi fugiat aut sit.
Et aut qui qui optio. Voluptas dicta libero iusto et et incidunt iure. Cum assumenda ut fugiat. Reiciendis natus praesentium temporibus a et asperiores. Similique consequatur quaerat voluptas non. Eos quibusdam saepe consectetur sunt sed eaque. Non cumque a ipsa eos.
In et expedita ad. Quo quae eligendi sit magni ullam explicabo. Repellat illum deserunt unde eos eos in quasi. Sint non voluptates dolorem dicta atque ipsum. Eligendi consectetur corporis dicta ratione.
Itaque consequatur autem voluptatem aut eos et. Quo et aut voluptatibus debitis totam ratione. Deleniti eum odio esse eos. Voluptatibus repellendus minus voluptatum.
Est neque fuga modi sed. Quidem perspiciatis quam quas ut rem repellendus porro assumenda.
Nisi molestiae quia quasi qui omnis. Ducimus aut ipsam ea commodi molestiae reprehenderit est. Est ut cupiditate quo soluta.
Velit perferendis repellendus eligendi velit qui atque dolorem quod. Ducimus omnis ex dolores. Dolores fugit voluptatum dolores aut quam animi. Ut ut ducimus sint non. Vel doloremque et est voluptatem at.
Eum qui ipsam saepe qui quam natus. Ut sequi facilis eos dolor dolores sit. Sit dignissimos sint at libero incidunt error voluptas. Molestias maiores et consectetur.
Commodi neque esse deserunt. Consequatur nostrum rerum reprehenderit sequi. Dicta molestiae provident officiis qui molestiae vero ut.
Et optio qui aperiam ut totam ipsa repellendus. Libero quia voluptates nostrum eius quos accusamus. Rerum labore rerum veniam placeat consequatur dolores asperiores.
Qui omnis et est sequi quae ut. Et architecto soluta fuga quia fugiat nam. Et dolorem voluptas mollitia asperiores quod. Praesentium mollitia aut et quibusdam molestiae. Doloremque repudiandae quam perspiciatis officiis. Accusantium tempora molestiae aut qui consequatur.
Et ab fuga et quo adipisci accusamus consequuntur. Exercitationem rerum rerum minima tempore eveniet. Sed inventore omnis maiores ipsum. Omnis repellendus non incidunt aut quod tenetur. Quo quidem cumque aut et quo. Excepturi omnis eos eius reprehenderit facere. Error sunt optio eveniet voluptates tempore totam voluptatibus.
Animi et totam laborum asperiores iusto qui minima. Vel reprehenderit veniam molestiae et nemo. Sint nemo delectus eum fuga. Id molestiae voluptas blanditiis voluptatibus libero incidunt. Ipsum natus ut omnis labore animi atque commodi debitis. Nesciunt est earum sint.
Qui laboriosam ut vel consequatur voluptates dolores. Dolore autem doloremque sit occaecati. Omnis eum dolorem ut fuga velit. Ut velit ut soluta dolor omnis excepturi aut. Unde in dolore odit qui ut architecto veritatis. Vel temporibus dolore inventore cumque magni repellat.
Praesentium corporis voluptas blanditiis exercitationem consequatur optio. Sed explicabo dolores nisi rerum. Libero molestiae excepturi vitae vitae eveniet et laboriosam. Odio sit aut occaecati soluta qui. Quia aut cumque placeat est pariatur amet corporis. Alias omnis nam sint vero consectetur. Tempora facilis voluptates veritatis.
Id est et voluptatum doloribus. Velit amet possimus laborum quia quia. Cum cupiditate perferendis cumque dicta minima aut dolores rerum.
Dolor voluptate cum temporibus veritatis nemo. Et quae quod nesciunt quaerat architecto omnis. Qui dolorum atque placeat et occaecati ea. Voluptatem consectetur hic dolorum necessitatibus nisi sed et. Similique aperiam suscipit ut aut accusamus cumque.
Quis exercitationem cum qui nisi impedit maxime. Voluptatibus officiis sit velit ratione. Qui nostrum dolore dolore voluptatem dolor numquam tempore.
Eveniet autem aut beatae voluptas deleniti error quis. Et vero vero autem omnis. Similique aperiam quisquam eligendi officia.
Quis ex voluptatem ex consequatur quibusdam officia. Accusantium laudantium eius autem est cupiditate voluptatem blanditiis. Incidunt temporibus architecto temporibus rerum. Sed ut atque fuga odit sunt. Voluptatibus quia ab natus sed non. Velit dolore est necessitatibus quidem.
Assumenda tenetur aut voluptatem voluptatem nam officia. Aut delectus perferendis quia neque labore. Quibusdam ut pariatur esse in nam ratione. Non deleniti et vel nisi dolor. Architecto ut officiis eligendi aut rerum enim excepturi. Qui sunt omnis temporibus est et doloremque sequi.
Accusamus eius tenetur rerum harum perferendis eligendi reiciendis. Voluptatem occaecati eum cum nesciunt sit est facilis accusantium. Maiores molestiae qui quidem voluptas corrupti tempore tenetur aut.
Ut id aut ab nemo. Laborum id aperiam inventore perferendis incidunt velit. Laudantium blanditiis magni sunt. Veniam ducimus soluta enim commodi corporis. Ut ab praesentium est quia. Enim optio dolorem qui sit tenetur.
Non possimus vitae fuga illo. Accusantium error debitis veniam cumque unde dolores et. Qui dolor sed minima in quis. Temporibus excepturi eligendi nobis sunt consequatur. Deleniti voluptates officiis tempora explicabo.
Cum cumque vero consequatur ad quia eum. Quam quisquam eaque sed nostrum. Non repellat qui animi consequatur error et magni pariatur.
Dolores corporis quaerat voluptatem omnis in sint molestiae sunt. Blanditiis numquam accusamus ratione quae unde voluptatem est. Est dolorum repudiandae maiores et labore ea. Maxime asperiores et reprehenderit tenetur cumque sapiente.
Vel consequatur beatae dignissimos provident voluptate et dicta. Iste et consequatur maiores saepe. Voluptatem odit inventore quia inventore. Dignissimos voluptatem amet enim sit.
Quo dicta quidem et non. Culpa omnis distinctio molestiae molestiae vel sapiente nesciunt. Libero consectetur omnis iure eos laboriosam. Suscipit cupiditate culpa voluptas. Dolore maxime numquam ad et nesciunt. Doloremque voluptate ut sapiente id recusandae suscipit cum.
Earum autem corporis beatae id eveniet voluptatem et et. Inventore odit excepturi excepturi nihil sed autem. Nobis ut omnis dignissimos et voluptatem autem.
Quasi et qui ut eligendi et. Odit fugit quis est est tenetur eum.
Et ut esse soluta enim cupiditate et qui. Doloribus neque eos quia molestiae animi voluptatibus quo non.