Starting a real estate brokerage firm or opening an agency are some of the most opted paths for anyone who is planning to kickstart a career in real estate. While some decide to work as a commercial real estate agent, the others foray into the residential market.
While both fields have commonalities, pursuing a career in commercial real estate is generally much more demanding in comparison to residential markets. Primarily because the sector is capital intensive. And thus, for commercial assets, in-depth financial valuations, market demographics studies, area statistics, and environmental research has to be conducted.
So, if you have decided to become a commercial real estate agent or want to switch from residential to commercial sector, then here is a guide that will cover all aspects of what it takes to become a successful commercial real estate agent.
Although the number of potential clients for residential real estate is higher and more evident, more often than not, the kind of money commercial real estate agents make is much bigger. This, coupled with the increasing demand for commercial properties, is usually what drives a lot of agents to pursue commercial real estate.
However, it’s not only about the money. To become a commercial real estate, a lot of things need to be checked, including extremely flexible work hours to accommodate your clients’ busy schedules, constant socialization and a strong do-or-die attitude. After all, big money doesn’t come easy. Hence, one must be prepared for it all while making this decision.
1. A Successful Real Estate Agent is Familiar with Legalities
Becoming a residential or commercial real estate agent in India does not mandate the requirement of any prior education except an Intermediate (12th grade) certificate. However, with changing landscapes, real estate companies now prefer hiring individuals who have graduated or pursued postgraduate level real estate courses and have a stronghold on various aspects of the industry.
In fact, enrolling in some real estate institutes and colleges at the early stages will help an aspiring commercial real estate agent in making premature contacts and build on networking from a young age. While holding a degree is one aspect, having a license to facilitate commercial real estate transactions is another.
Earlier, in India, one didn’t need any license or certification to become a residential or commercial real estate agent. However, with the enactment of the RERA Act, the process has now changed. Today, you need to get yourself registered with the concerned state’s RERA (Real Estate Regulations Authority) to work as a real estate agent.
2. A Successful Commercial Real Estate Agent Specializes in One Niche
Commercial real estate represents those immovable assets that are used for investment or rental purposes. It is therefore a vast industry made up of countless specialties. While some agents may choose to specialize in student housings, the others help clients find suitable retail spaces. With commercial assets ranging from shopping malls and office complexes to mixed-use lands and healthcare infrastructure, choosing to focus on one specific area of the market coupled with thorough research can help grow the business manifolds.
3. A Successful Commercial Real Estate Agent Understands the Importance of Market Research
In order to establish a flourishing career as a commercial real estate agent, you need to understand the market dynamics and equip yourself with in-depth knowledge about the industry. Past dealings have to be looked into and cases have to be deeply and broadly studied.
Your knowledge should not be limited to only market rates, sales, and listings, about which you obviously have to be able to quote every piece of information at the edge of your lips. Your expertise should also extend to the property documents, legalities, and tax laws which you should be able to readily provide.
Additionally, since commercial property investment is valued on the income from an investment perspective, a thorough understanding of industry standards and financials is required to strike the right deal. This will make you look like a no-nonsense agent, who knows his job and is ready to take on the business.
4. A Successful Commercial Real Estate Agent Knows How to Build a Network
From checking in with previous customers and existing clientele to socializing with them at events that have nothing to do with work, the goal is to stay at the top of an investor’s mind so that when a deal presents itself, you’re the one who is remembered. While staying connected with investors and prospective clients is important, discussing different aspects of the industry with fellow commercial real estate agents will help you further build a strong network.
Additionally, when the opportunity presents itself, you can also introduce yourself to industry experts and agents from other firms through social media. Social media allows you to connect with a larger audience and present various offers and listings directly. Apart from posting property information, you can also share infographics, neighbourhood details, and market information to make the details more clear for the investors.
5. A Successful Commercial Real Estate Agent Knows How to Strike the Right Deal
Whether it’s the location or pricing, a successful commercial real estate agent has a firm understanding of what is required out of a lease or a sale. The agent is also equipped with all the information pertaining to a property and can predict the future prospects the asset holds. In addition to this, a successful agent listens for clues that will help bridge the gap between the investor and the seller. With all factors in place, the agent can pitch a property to the investors accordingly.
6. A Successful Commercial Real Estate Agent Incorporates Technology
From streamlining organizational work and marketing commercial assets to making smart contracts, technology in real estate is transforming the commercial sector tremendously. Hence, an agent who is flourishing in this domain must have or is utilizing PropTech helps in the following ways:
- Storing and evaluating a vast amount of information along with making financial transactions using big data and blockchain technology.
- Understanding market trends and providing digital assistance through artificial intelligence and machine learning based systems.
- Keeping track of daily progress in deals, emails, calls, texts, and stages of prospects using CRM in real estate.
- Offering guided and interactive visits to investors and prospective buyers through virtual reality.
- Leveraging digital marketing strategies and online platforms to reach a wider audience and generate more leads, resulting in increased visibility and potential clients for the commercial real estate agent. Social media, search engine optimization, and targeted ad campaigns play crucial roles in modern real estate marketing.
- Utilizing online listing platforms and property databases to efficiently showcase commercial real estate listings and attract potential buyers or tenants from around the globe. These digital tools provide increased exposure and accessibility for available properties, streamlining the marketing and transaction processes. Successful agents leverage these platforms to their full potential, ensuring their listings are visible and appealing to a broad pool of prospects.
7. A Successful Commercial Real Estate Agent Plans for Rainy Days in Advance
Commercial deals are capital-heavy and long term investments, hence, financial planning forms the basis of a successful commercial real estate agency. Quite often, when you are almost through with a deal, the investors may back out at the end. This may lead to possibly losing another significant investor as you invested a lot of time on the former. Or in order to scale up your business, you may want to invest in advanced systems.
Therefore, those commercial real estate agents who maintain a backup fund for at least 6 months in advance can pass through economic slowdowns, market volatilities or even major events such as the COVID-19 pandemic.
8. A Successful Commercial Real Estate Agent Actively Seeks Referrals
Maintaining healthy and professional relationships with your existing as well as past clients comes in very handy while seeking referrals. If you want to become a commercial real estate agent, you must now shy away from asking for referrals. This can be a tricky path to tread on because you don’t want to come across as needy. However, using social media to ask for referrals or asking your current client to make an introduction are the most effective ways of seeking referrals.
A proven strategy is to create an incentive program that rewards existing clients for referring new business. This could include offering a small gift, a discount on future services, or a cash value reward. Asking for testimonials and permission to use positive reviews in marketing materials also encourages referrals by highlighting your expertise and satisfied customer base.
Going to networking events, joining professional organizations, and being involved in the local community are ways to build relationships that can give you a referral source. Agents who do not just sit in and wait for referrals but take the ball into their hands and develop a system of asking for referrals after achieving extraordinary results for their clients.
9. A Successful Commercial Real Estate Agent Understands the Power of Digital Marketing
Whether it is the industrial or retail spaces, traditional marketing plays a pivotal role in the success of every real estate profession. However, with the advent of new-age technologies and growing internet penetration, a sizable population of real estate investors are now available on various digital and social media platforms.
Hence, a commercial real estate agent who leverages the power of online marketing and advertising thoroughly is the one who gains success in this field. Here is how you can also use e-marketing to promote and gain quality leads:
- Putting your listings and projects in front of the target audience using Google or Facebook real estate ads.
- Ranking content such as blog posts and downloadable guides on search engines through search engine optimization technique (SEO).
- Posting testimonials, explanatory videos, real estate news, business goals, and other relevant information on social media profiles.
10. A Successful Commercial Real Estate Agent Believes in Teamwork
Being capital intensive assets, understanding the financial implications and future prospects of investing in a commercial property is an absolute necessity. A successful commercial real estate agent, therefore, works with a team of lenders, underwriters and other members to gauge through the performance of a specific property. Agents find the deals, underwriters evaluate the properties and then sellers decide which one to proceed with, based on their investment strategies.
11. A Successful Commercial Real Estate Agent is Willing to Upskill
While all the aforementioned pointers play a significant role in establishing a strong presence of your agency, upskilling is the secret to working as a successful commercial real estate agent. Since real estate is an ever-evolving industry, you need to work on improving your skill sets. For example, if you find it difficult in drafting key documents, you can incorporate blockchain technology to draft smart contracts without any assistance. By gaining solid experience and upskilling, starting your own brokerage firm will no longer be a tedious task!
Team collaboration and good communication within are very important features for finding the right opportunities, mitigating risks, and dealing smoothly. The ultimate goal of an effective agent should be identified in accordance with the fact that they are capable of exploiting the combined skills and resources of the team to create an integrated operational atmosphere where each person employs his or her unique powers towards achieving the same objectives. Teamwork can serve as the key in the complex world of commercial real estate, where the agents can perform better with their jobs, provide outstanding services, and create steady connections with clients and investors.
Although a commercial real estate agent lives quite the workaholic life, incorporating the aforementioned tips and roadmap can help you flourish in this sector. Facilitating commercial real estate deals involves a whole new sphere of influence and a very different property evaluation. Hence, only having sufficient knowledge about the market and the types of investors will not fill the purpose. It is also important to understand the intricacies of the asset, requirements of the investor and seller needs in order to negotiate the right deal. Once you get the knack of it, working as a commercial real estate agent can be a rewarding job with quite a few perks of its own.
