Networking, a strong work ethic, and being knowledgeable about your local commercial real estate market can help you break into the industry. It’s also vital that you’re a good fit for commercial real estate.
Being successful in commercial real estate and building your own CRE agency hinges on where you specialize and the reputation and culture that you create. These elements are essential as you build your CRE agency.
Commercial real estate brokerage and development is big business just about everywhere, but markets in big cities are often a little more active. Breaking into large markets sometimes takes more persistence, but your hard work will pay off. In smaller markets, it may be easier to make waves, but the deals are usually smaller, as are the fees and CRE .
Finding a specialization keeps you focused so that you can build your agency and not get distracted with smaller deals or ones with elements you aren’t familiar with.
The specialization determines the types of properties you’ll handle, as well as the types of people that you’ll interact with, the knowledge that you need, and the environments you’ll work in. Depending on your personality type and interests, you’ll likely gravitate to a certain industry segment.
Your Agency’s Culture
Successful CRE agencies foster the idea that when everyone works together, everyone makes more money, gets and retains clients, and dominates the market. Make collaboration a part of your company culture. Fierce competition and distrust do more harm than good. Let this drive how you pay your staff, split commissions, and assess fees, as well as how you set up your .
Self-improvement can go a long way, but certain personalities are more successful in CRE. As a broker, you will simultaneously be a contractor, architect, salesman, attorney, financial analyst, and design consultant—depending on who your client is and what property you’re working with. Successful CRE professionals are personable, good with money, and driven.
Your income is not always steady. Can you manage your lifestyle on a commission, or not getting paid for several months? And, if you were to get a large six-figure check, you would likely need to make the money last for a while.
Success in commercial real estate depends on being a good fit. You have to fit in well with the industry, the lifestyle, and your specialization. And, as you build your agency, you have to create a company that fosters collaboration and fits within it.