How To Become A Commercial Real Estate Agent
A commercial real estate agent help clients purchase and sell real estate for business purposes. If you want to work in the challenging world of buying and selling commercial pieces of real estate then you can consider becoming a commercial real estate agent. In this profession, you will be responsible for connecting buyers and sellers of buildings, restaurants, offices and other commercial real estate properties with each other so that a transaction can take place. Your job as a commercial real estate agent can be very demanding since you need to perform a lot of research and analysis about a particular property before you can convince clients that it is what they are looking for. For instance, the client may want to know about the demographics of the people living in that particular area or the presence or absence of potential competitors to his or her business there.
As a commercial real estate agent, you will be giving your clients estimates of the cost of the property they are interested in purchasing. You use your knowledge of the market as well as your familiarity with the area to provide relevant information to clients that would help them decide on whether to push through with their purchase or not. You should be able to answer any concerns they may have about pertinent things like crime rates, the availability of schools and shopping centers and potential safety issues in that particular location.
Part of your work is taking the client to see each property. In these site visits, you will be showing the different features of the building, pointing to the strengths in each one and identifying areas that may need repair or minor modifications. Of course, this also entails informing the client about the costs for such a project.
Helping clients with all the paperwork is a very important part of your job. You will see to it that the clients have properly filled out all the forms and that the transaction is legally binding for all parties. You will be reviewing the contract before it is finally signed to ensure that everything is in order.
To succeed as a commercial real estate agent, a primary requirement is having excellent interpersonal and communication skills. Most of your time will be spent talking to clients so you need to know how to keep them excited and eager about a potential commercial property. You must also possess problem-solving skills since an important part of your job is being able to address potential issues that could come up with a transaction.
Why Become A Commercial Real Estate Agent
A career as a commercial real estate agent is fulfilling for those who are really interested in working in the commercial real estate industry. It also provides a very good opportunity for those who have tireless and excellent business savvy to earn a fat paycheck with each transaction. Individuals who have a knack for persuading others and would like a career that would enable them to interact with people constantly will find satisfaction in this career.
Commercial Real Estate Agent Work Environment
Just like other real estate sales agents, commercial real estate agents work for real estate brokers. The typical arrangement is for the agents to get a commission when they sell a property. Most of them work for brokerage offices, leasing offices and other companies operating in the real estate industry. While they typically prepare paperwork in their offices, the bulk of the time of commercial real estate agents is spent meeting with clients on site and touring them in various buildings and offices that are up for sale. They work more than the standard 40-hour work week and have to exert effort to broaden their contacts with the community so they can meet potential clients.
Commercial Real Estate Agent Salary
The Occupational Employment and Wages report of the U.S. Bureau of Labor Statistics revealed that the mean annual wage of real estate sales agents is $53,140. Most of their income is derived from commissions every time they make a sale so this could fluctuate depending on the economic conditions. Generally speaking, commercial real estate agents earn more as they become more experienced in their jobs. For beginners, it’s common to go for weeks or months without making any sale so these could be challenging times.
Commercial Real Estate Agent Career Outlook
The U.S. Bureau of Labor Statistics has projected a very positive job outlook for real estate brokers and agents in the coming years. For the time period covering 2012 to 2022, the employment rate of these professionals is set to grow 11 percent, a rate that is about as fast as the average for all job types. The increase in population and improving economic growth will spur the demand for real estate brokers and agents. This will mean that more people will be looking for a space to set up their businesses. However, the need for brokers and agents in the real estate industry will decline if the economy also slows down and the interest rates go up.
Commercial Real Estate Agent Degree
Real estate brokers and sales agents must have a minimum of at least a high school diploma. In addition, they must be licensed before they can practice the profession. Requirements for licensing include completion of courses about real estate, being at least 18 years old and passing an exam. In some states, candidates may also be required to undergo a background check before their license can be issued.