Is becoming a commercial real estate agent right for me?
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How to become a Commercial Real Estate Agent
Becoming a commercial real estate agent involves a combination of education, licensing, experience, and networking. Here is an overview of the pathway to the career:
Meet Eligibility Requirements
You must be at least 18 or 19 years old, depending on your state or country. In addition, most regions require that aspiring real estate agents have at least a high school diploma or General Education Development (GED) certificate.
Bachelor’s Degree (Optional, but Beneficial))
Although not mandatory, earning a degree can give you a competitive edge in the commercial real estate field. Relevant degrees include real estate, business administration, marketing, finance, and economics.
Courses in these subjects provide valuable knowledge in areas like market analysis, property valuation, negotiation, and financial planning, which is crucial for commercial real estate agents.
Pre-Licensing Education
After meeting the basic education requirement, prospective agents must complete an accredited pre-licensing course from a real estate school or institution. The number of required hours varies depending on the US state or country, but typically ranges from 60 to 180 hours.
The course curriculum generally covers key topics such as:
- Real estate principles and practices
- Property ownership and zoning / land use
- Contracts and agency relationships
- Property valuation and appraisal
- Real estate finance and mortgage laws
- Real estate ethics and professional conduct
- State-specific real estate laws and regulations
Licensing Exam
To operate as a commercial real estate agent, candidates must pass the real estate licensing exam. To qualify for the exam, they must usually provide proof of completing the pre-licensing education.
The exam usually has two parts:
- A national section that covers general real estate laws and principles and practices
- A state or regional section that focuses on specific laws and regulations in your state or jurisdiction (if in a country other than the United States)
License Application
Once you pass the exam, you’ll need to apply for your real estate license through your state’s or country’s real estate regulatory agency. You may be required to submit a background check and fingerprinting as part of the application process.
Join a Brokerage and Gain Experience
To legally practise as a real estate agent, you must work under a licensed real estate broker. Many new agents start in residential real estate to gain experience, build a network, and develop industry skills. However, if you are focused on commercial real estate, you can try to join a commercial real estate firm or seek mentorship under experienced commercial agents. Among the top commercial real estate brokerages in the United States are CBRE, JLL, Cushman & Wakefield, Colliers International, and Newmark. It is not uncommon for commercial brokerages to provide further training in areas like investment analysis and lease negotiations.
Build a Network and Establish Client Relationships
Networking is critical in commercial real estate. You’ll need to build relationships with business owners, investors, developers, and property managers. Attend local business events, join real estate associations, and leverage online platforms like LinkedIn to connect with professionals in the industry.
Continuing Education
After becoming licensed, most states require real estate agents to complete continuing education courses to renew their licenses periodically, usually every one to four years. Continuing education helps agents stay updated on changes in laws, regulations, and industry trends.
Certifications
There are several certifications available for commercial real estate agents that can enhance their expertise and credibility in the field. In general, earning these credentials requires additional coursework, examinations, and professional experience:
- Certified Commercial Investment Member (CCIM) – Offered by the CCIM Institute, this certification is highly regarded in the global commercial real estate industry. It focuses on commercial investment analysis, including financial modeling, market analysis, and investment strategies.
- Member Associate, Society of Industrial and Office Realtors (SIOR) – SIOR is a prestigious designation for professionals specializing in office and industrial real estate. The certification emphasizes expertise in leasing, sales, and market knowledge in these sectors.
- Certified Property Manager (CPM) – Although more focused on property management, including operations, finance, and tenant relations, the CPM designation from the Institute of Real Estate Management (IREM) is valuable for agents involved in managing commercial properties.
- Real Property Administrator (RPA) – Offered by the Building Owners and Managers Institute (BOMI), the RPA certification focuses on the operational and maintenance aspects of commercial real estate management.
- Certified Leasing Specialist (CLS) – This certification is offered by various real estate organizations and focuses on leasing skills for commercial properties, including tenant relations and lease negotiation.
- International Council of Shopping Centers (ICSC) Certifications – The ICSC offers certifications like the Certified Retail Property Executive (CRX) and Certified Shopping Center Manager (CSM), which are specialized for retail real estate professionals.
Professional Organizations
In addition to the certifying bodies referenced above in the Certifications section, the following organizations also support the commercial real estate agent community, providing advocacy, resources, educational programs, and networking opportunities:
- National Association of Realtors (NAR) – NAR is more broadly focused, counting all types of real estate professionals among its members, including commercial realtors.
- American Industrial Real Estate Association (AIR) – AIR focuses on industrial real estate professionals and providing insights specifically for the industrial property sector.
- National Association for Industrial and Office Parks (NAIOP) – NAIOP is a trade association for developers, owners, and investors in office, industrial, and mixed-use real estate.