Author Topic: Commercial real estate agent?  (Read 1419 times)

Cwadda

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Commercial real estate agent?
« on: November 03, 2017, 11:39:11 AM »
Hi All,

I have a second interview for a commercial real estate office to be a commercial real estate salesperson.  I was wondering if anyone had any experiences?  It's a bit different than residential.

I have a keen interest in real estate but I'm not sure if a commercial agent is the right way to go.

Thanks,
Cwadda

tralfamadorian

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Re: Commercial real estate agent?
« Reply #1 on: November 04, 2017, 07:42:33 AM »
Congrats on the second interview!

All I know about commercial is that it is more tight knit than residential- networking both on the buy and sell side is very important.

Also, that generally commercial is more lucrative for agents.

Kl285528

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Re: Commercial real estate agent?
« Reply #2 on: November 04, 2017, 08:01:44 AM »
That is what I do. I highly recommend you join a company where you get to be someone's junior to learn the business. Also, to benefit from deal flow that is already established. Ideal first job would be as a landlord side leasing agent, where you work on a portfolio of properties, like several office buildings, several industrial parks, or several shopping centers. Alternatively, a job in property management for a couple of years would be invaluable experience to understand the economics of how buildings work. Eventually, your success will come down to hard work and hustle. But you need to have a clear picture of how to survive for six months to a year or more on low deal flow if the job is commission based, and you are not making any money.

Cwadda

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Re: Commercial real estate agent?
« Reply #3 on: November 06, 2017, 11:08:17 AM »
That is what I do. I highly recommend you join a company where you get to be someone's junior to learn the business. Also, to benefit from deal flow that is already established. Ideal first job would be as a landlord side leasing agent, where you work on a portfolio of properties, like several office buildings, several industrial parks, or several shopping centers. Alternatively, a job in property management for a couple of years would be invaluable experience to understand the economics of how buildings work. Eventually, your success will come down to hard work and hustle. But you need to have a clear picture of how to survive for six months to a year or more on low deal flow if the job is commission based, and you are not making any money.

This helps!  Thanks.  Yes, I am in a position to live comfortably for the lag period of making money when I first start.

frugaliknowit

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Re: Commercial real estate agent?
« Reply #4 on: November 06, 2017, 11:17:03 AM »
Do you have a spouse or significant other who can support you for a year or more?  Maybe you still live with parents?

I hustled for a large commercial firm for a year a very long time ago.  I closed one deal, then had to leave, due to starvation.  Like residential, it's mainly a question of how talented you are at sales (me not so much).  Consider a side hustle if this is strait commission.

Cwadda

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Re: Commercial real estate agent?
« Reply #5 on: November 06, 2017, 11:52:56 PM »
Do you have a spouse or significant other who can support you for a year or more?  Maybe you still live with parents?

I hustled for a large commercial firm for a year a very long time ago.  I closed one deal, then had to leave, due to starvation.  Like residential, it's mainly a question of how talented you are at sales (me not so much).  Consider a side hustle if this is strait commission.

Yes, my side hustles (currently about 8 hours/week) are enough to support my living expenses.

Goldielocks

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Re: Commercial real estate agent?
« Reply #6 on: November 07, 2017, 02:51:53 AM »
I have worked with a few  (I did due diligence / site selection analysis for clients, the agents had the properties listed that were under review).

Commercial versus residential:
-- have longer sales cycles, and equal amount of sales effort needed to get clients.   The best ones have long term clients with repeat business.
-- need to understand tenant / lease contracts (commercial ones), and typical negotiations, which as you may know, have many more points to potentially negotiate
-- typically need to understand business finance better.  Need a good business / math analysis ability.  some actually need to hire or use a designated person n the office for this.   The sale happens because the overall business profit is better at location A than B.  If the agent can show that, then they are more likely to get the sale.
-- may need to understand the basics of construction and / or tenant improvement process

ETA -- when the client has money for reviews, and the commercial agency does not provide the above, that is when I would be given a job.   I lost a lot of potential business* to the great commercial agents who could competently walk the client through all of the above.  (*But it is all good, if the customer gets what they need)
« Last Edit: November 07, 2017, 10:07:21 AM by Goldielocks »

thedayisbrave

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Re: Commercial real estate agent?
« Reply #7 on: November 07, 2017, 09:13:09 AM »
I'm a residential agent.  Generally commercial deals take longer but have larger commission payouts.  Network with residential agents too - a lot of my clients ask if I do commercial and I end up referring them to commercial brokers I know.  I had one commercial broker completely burn me so I no longer refer to him.  Take care of those who you refer to you and get to know some top producing residential agents - it could pay off. 

Cwadda

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Re: Commercial real estate agent?
« Reply #8 on: November 09, 2017, 05:52:53 PM »
Thanks for the additional info, folks. I did get the job offer and am still very much on the fence about it.