Your Career In Commercial Real Estate
Have you ever wondered what the difference is between a commercial real estate agent and a residential agent? It is not all that complicated, really. Commercial real estate agents market and lease apartment buildings, office buildings, shopping centers, hotels and industrial buildings. They typically work for large commercial property brokerages in a formal, high-pressure and very aggressive atmosphere.
Unlike residential real estate, which focuses on relationship building and emotional purchases, commercial real estate is research and analysis driven, since millions of dollars can be at stake with each client. The competition between agencies is fierce, and the competition within agencies can be even fiercer. However, if this sounds appealing to you, there is a lot of money to be made in commercial real estate.
A typical commercial real estate agent has a college degree, a sales background, extensive knowledge of finance and a real estate license (typically the same one as a residential real estate agent). There are two types of commercial real estate associates: those who represent tenants and those who represent landlords.
Tenant representatives work with companies and other corporations looking to lease or buy office space. Prospecting for clients is a big part of the job and involves a lot of phone calls and business lunches.
Once they get clients, tenant reps perform analysis and find the vacant buildings best suited for the company. They negotiate terms of the lease and prepare extensive paperwork. Like residential real estate agents, commercial real estate agents earn commissions and split them with the managing broker. The commission split depends on property type, seniority, and size of the transaction. Deals are long and complex and it can take up to a year to get paid.
Leasing agents, on the other hand, work with the owners of commercial properties to lease space to third party companies. They show and lease spaces, negotiate the terms of the leases and build relationships with current leasers in the commercial spaces. Leasing agents are always collecting information on competing properties and are required to know everything happening inside and outside of the property. A large part of the job is to entertain the brokerage community by throwing parties and other social events to market their company’s building. They generally receive a salary in addition to commission.
This field does not tend to be as lucrative as tenant representation, but the pay is more stable.
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