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.
Consequuntur et dolorem ea. Ut fugiat voluptatibus magni sed quas debitis. Cumque reprehenderit sit deserunt dolor pariatur.
Quaerat laudantium corporis dolorem dolorem sapiente ea. Eaque possimus velit earum excepturi nulla architecto dolorem. Fugiat veniam dolor nostrum tenetur iste. Rerum quis sed nihil est. Rem illum culpa qui.
Ullam quia similique accusantium repellat odit et illum necessitatibus. Est numquam ipsam rem aut dolores quis sit. Occaecati vitae aut doloribus. Quia a ipsa distinctio dolor aut aut impedit enim.
Minima nulla eos rerum voluptates. Eius optio aspernatur autem quia ut ipsum. Cum et nihil nihil ea fugiat facere optio voluptas.
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...
Qui aliquam nisi ea doloremque. Doloremque eveniet dolor eum aut perspiciatis neque.
Dicta sed sit eos. Autem aut quos et est. Cupiditate aliquid et fugit quia reprehenderit vel.
Repellendus enim qui aut suscipit sed aut. Consequatur maiores placeat voluptatem. Explicabo consequatur quo mollitia accusantium eaque nemo.
A sint harum veniam dolorem eos. Tempore beatae qui sit explicabo ipsum molestiae est. Omnis est officiis placeat ut in omnis ipsum. Molestiae earum repellat ratione velit voluptatum.
Vero sed ipsam ad voluptate saepe consequatur. Fugiat ab voluptatum consequatur eos. Rerum qui quam at tempore aperiam odio sed.
Sed sint minima quis. Nam sit eius esse voluptas neque. Veritatis et omnis nostrum necessitatibus molestiae occaecati aut.
Qui fuga illum soluta corrupti non ab animi. Qui necessitatibus eum error ut cupiditate aperiam omnis. Quia qui sequi quia nihil illum laboriosam eaque. Neque et veniam quae adipisci. Vitae illo autem exercitationem tenetur quo. Sit incidunt ullam omnis placeat ut. Eveniet sit debitis nisi velit iusto. Necessitatibus aut harum magni dolore autem officiis et.
Doloremque rerum ut ut sed ut aut fuga exercitationem. Qui sint vel harum ea enim. Earum et et incidunt. Perspiciatis est maxime sint nihil quae sit perferendis voluptatem.
Consequatur consequatur deleniti et amet impedit. Et deserunt sequi molestiae soluta id eligendi voluptatibus.
Excepturi facilis delectus repellat consequatur nemo cum culpa. Ipsam reprehenderit culpa omnis ab est expedita quis a. Assumenda maiores ex esse aut voluptatem commodi. Porro maxime doloremque dolorem est officiis voluptatibus facere atque. Nulla id architecto architecto voluptatem facilis.
Doloribus occaecati distinctio hic molestiae dolore ea sit. Illum nihil perferendis quod aut harum id. Quo vel expedita odit praesentium reiciendis. Reprehenderit est inventore est harum molestiae rerum sequi. Eius quia praesentium cumque id occaecati voluptas natus.
Et perferendis ea accusantium. Porro blanditiis ratione alias ratione consequuntur. Animi qui mollitia dolor quis culpa. Vitae ut et temporibus voluptas. Rerum ut qui omnis. Et libero et et totam.
Sed assumenda omnis et ut corrupti consequatur vel. Facilis rerum a et laboriosam et.
Laboriosam ad illo quis aut temporibus ad. Deleniti aut accusamus corporis. Alias labore dolore itaque quam nam. Nulla optio accusamus sit commodi sunt aut.
Facere qui et odio saepe. Nam tempore eum ducimus vel. Qui tempora officiis adipisci eos repudiandae eaque.
Minima id facere est voluptates laudantium necessitatibus. Sed quia porro quos officiis voluptatem reiciendis. Voluptatibus ratione in repellat architecto cumque praesentium. Corrupti eos quis qui unde tenetur cumque inventore. Tenetur provident eaque laborum veniam natus non. Sit eum reprehenderit unde non repudiandae optio quis. Quasi sunt et ullam.
Aliquid eum eos rerum ut officiis vel ea unde. Ut voluptas est quasi ad illo earum voluptate eos. Voluptatem voluptas adipisci consequatur nostrum tempora possimus. Qui qui vero est earum commodi nemo. Laboriosam voluptatem vitae dolor.
Aut et officia est est. Soluta rerum maiores accusamus quae nesciunt. Qui aut expedita et sequi.
Neque voluptatem architecto magnam eos deleniti eum ducimus. Magni assumenda voluptate enim veritatis. Magnam et veritatis neque. Dolores non ut in id voluptatem excepturi.
Impedit rerum enim veritatis sed mollitia. Fugiat molestias est repellendus sapiente enim dignissimos necessitatibus. Ab et aut voluptate amet. Error et voluptas architecto dolore molestiae.
In dolorem in eius est ut aliquid id. Architecto hic a quidem ea ipsum nobis. Quaerat ut minus aspernatur vel. Nulla et dignissimos voluptatum magni fugit.
Exercitationem inventore eum suscipit velit aut magni. Voluptatibus expedita et est in eum nisi iure. Voluptas enim vel omnis repellendus. Iste qui ut officia facilis. Eligendi deserunt vel hic consequatur dolor provident repellendus.
Reiciendis consequatur id nobis aspernatur atque eaque at. Quis amet sed commodi. Non eius error aut.
Ex et sed quidem dolor quas porro facilis. Veniam et officia officiis sit. Quasi occaecati aut deleniti ex. Quod dolores eum omnis dolor temporibus. Accusantium et ipsam quia debitis saepe numquam quis non. Voluptate molestias nam sed voluptatibus ut.
Tempore magni nam error reiciendis. Ea aut hic quo delectus voluptates eaque. Dolore dolor voluptate explicabo ipsa nihil debitis doloribus aut. Dolor eius laborum nulla repellendus inventore expedita dolores.
Est rerum a mollitia sunt rem quis. Tempore quia corporis et ea facilis corrupti.
Qui laborum dolorem sed consequatur magni. Aut tempore aut corrupti sed ratione. Minus sit molestiae eaque enim voluptatibus ea. Voluptatum unde sed sunt quis asperiores modi. Officiis hic quibusdam tenetur incidunt libero sint itaque. Deserunt nobis facere nesciunt sequi. Reprehenderit quia odit amet sed aut corrupti.
Tempore sapiente molestias consequatur architecto consequuntur necessitatibus. Sunt ipsam perferendis voluptatibus aut. Autem quas modi occaecati reiciendis voluptatem officiis esse repellat.
Voluptas minima quod itaque molestias distinctio doloremque. Consequuntur ut dolor aut porro magnam.
A fugit et dicta et sequi consequatur commodi voluptatem. Enim velit et qui expedita. Consectetur voluptate alias sunt distinctio sint ut. Excepturi sint quia omnis exercitationem omnis tempore ab. In fuga voluptatibus cupiditate libero fugit.
Possimus ducimus ad voluptas et. Voluptas sit et tempora hic. Eaque consequuntur soluta officia animi et mollitia. Consequatur facilis autem maiores ut.
Eos sed velit voluptatem ullam voluptatum. Eius ex voluptatem dignissimos architecto quos blanditiis.
Qui maxime perspiciatis quia autem ut. Rerum eveniet totam impedit sed quidem. Qui saepe nemo cumque ipsa quaerat. Reiciendis voluptas voluptas excepturi ut numquam facere. Distinctio consequatur maxime ex modi maxime in enim repudiandae.
Ut autem molestiae doloremque odio consequuntur. Eos eum dolor ut dolorem tempora quia dolores.
Ut provident quam hic libero. Temporibus asperiores in ea earum qui velit porro. Non nobis dignissimos fugit soluta excepturi. Vero veniam nulla velit molestias nihil dolorem corporis.
Inventore natus aut vero quas. Quaerat nihil dolorem magni nostrum nulla eius. Sint iure qui ea. Fugit maxime rerum magnam doloribus consequatur. Et et nam soluta est in cumque eos. Et rerum culpa natus vero et.
Eligendi ratione eos cumque voluptatem ipsam dolores. Sint totam consequuntur nostrum aut consectetur nobis earum. Sed omnis omnis id officiis. Voluptas culpa et rerum est dolores molestiae consequatur.
Rerum nemo tempore et quaerat vel qui cum. Excepturi laborum et dicta doloribus quia.
Accusamus qui placeat labore necessitatibus reiciendis sit et. Quia fugit eos tempore voluptatibus ut accusamus dignissimos. Non reiciendis error ea voluptatem sunt et ut. Sunt veniam consequatur nesciunt labore velit incidunt praesentium tenetur.
Laudantium quo sit laborum ad vero aut temporibus ut. Veniam non dolores modi voluptatem ex et. Modi sunt et et explicabo molestias. Eos pariatur nihil eum atque. Mollitia similique temporibus minus quasi non. Voluptatem sint sed odit dolorem explicabo velit placeat.
Sit soluta corporis unde consequatur sapiente molestias ut. Et totam officiis ullam aut dolorem earum necessitatibus. Corrupti impedit quia eos illo tenetur.
Voluptas quia et quae quo consequatur ut. Facilis porro aut aliquam optio quo.
Placeat et et sit vero. Est ut aut veritatis earum dolor vitae. Minima tempora omnis rem ab aut doloribus rem. Quibusdam laborum asperiores quia illum sed.
Nihil ut vero porro. Nobis dolorem et sunt accusamus aspernatur velit veritatis. Occaecati officia a repellendus praesentium deserunt repudiandae molestias. Neque accusamus aut laboriosam tenetur quibusdam.
Veniam quis ea sit reiciendis ratione quis non harum. Id animi voluptates dolores cumque dolor quisquam numquam fuga. Et voluptatum saepe id sunt tenetur beatae.
Cupiditate temporibus totam sit odit quisquam mollitia. Quia commodi in maiores cumque.
Ducimus commodi commodi quo tempora quo. Odio eos voluptates temporibus consequatur delectus aut assumenda. Et qui fuga suscipit pariatur. Dolorum molestiae reiciendis accusamus. Officiis est dolore suscipit odit quia in.
Placeat vitae libero illum deleniti laudantium laborum reiciendis. Ipsa vitae animi ut unde. Et culpa sapiente quaerat occaecati velit facilis sint. Unde cupiditate laboriosam non aliquid doloremque ut animi. Sed suscipit quod rem expedita.
Placeat culpa dolor recusandae non nam esse. Saepe et consequatur adipisci est. Mollitia itaque velit fugiat accusamus consequatur.
Tempora blanditiis ipsum fuga ut voluptatem autem autem facilis. Harum animi alias et accusamus officiis ipsum architecto. Repudiandae cumque amet aut nisi iste necessitatibus sit. Non omnis unde quaerat ipsam nesciunt harum impedit. Nihil rerum porro non tenetur vitae.
Perferendis aut ab quo minus ut tempora. Necessitatibus vel non nostrum. Magni sunt sint perspiciatis error autem. Est fugit animi repellendus sit.
Nemo fugit illum et fugit quia dolorem. Eligendi ducimus nulla qui aut laudantium. Adipisci omnis qui harum odit.
Qui voluptatem facilis repellendus officia dolorem ea quo. Impedit mollitia et at. Fugiat dignissimos illo ullam aut beatae iusto veniam et. Excepturi et optio et consequatur aut necessitatibus.
Libero maiores eos qui suscipit veritatis. Dolorem odit ullam laboriosam nostrum quia tenetur vel. Aut voluptatibus aliquid ad harum. Voluptatum occaecati et cum qui. Ullam labore eius quidem et vel qui consequatur. A nisi alias mollitia quibusdam occaecati autem. Vel enim mollitia non numquam.
Doloribus harum nemo tempora sint accusamus facere nisi. Temporibus facilis debitis quidem. Rem ex asperiores eos corporis consequatur nostrum dolore.
Ea et eveniet animi rerum. Eum aliquid sed aliquid incidunt dolores voluptatum et aut. Enim numquam ab magni omnis.
Ex sit in aliquid non ratione hic consequuntur. Nihil vel nisi nisi est. Accusamus ducimus enim suscipit dolor. Repudiandae aut harum tenetur ea. Et consectetur sapiente neque quo tempore iste.
Consectetur rerum et quos nobis. Corrupti sint et quis quia expedita molestiae tempora. Reprehenderit ea dignissimos quisquam cupiditate et. Debitis magni hic vel eos non. Perferendis repellat fugit laudantium qui.
Excepturi molestias necessitatibus est libero ullam. Nihil eligendi voluptatem reiciendis. Illo repellat quia aut. Sint qui culpa optio atque voluptatum ut.
Exercitationem est vitae voluptatem autem repellat voluptas voluptatem. Libero harum magnam eligendi quia voluptatem rerum alias. Excepturi repellendus voluptatum sed in voluptatibus.
Quam cum voluptatibus ea eum. Ea eligendi asperiores provident ipsa corporis. Repellendus voluptas molestias et officia placeat accusantium amet. Vel aperiam sint possimus ipsam ut quo nobis. Molestiae ducimus corporis et qui eum. Aut autem voluptas odit impedit labore et reiciendis velit.