Hundreds of thousands of people are drawn to careers in commercial real estate (and for very good reason). The industry moves fast, keeps work interesting, allows agents to build their own schedules, and has high earning potential. There’s a lot to love.
So, if you’re interested in pursuing this lucrative career path, where should you start?
In this guide, I’ll outline the steps to becoming a commercial real estate agent, including licensing requirements, state qualifications, and the career paths available once licensed.
First up—a true definition of what it means to be in commercial real estate. Get your notes out, and let’s get started!
Key Takeaways
- Commercial Real Estate = High Potential: The industry gives agents schedule flexibility, long-term earning potential, and the opportunity to work on complex, rewarding deals.
- Licensing Is Step One: Every commercial agent must first complete pre-licensing education, pass a state exam, and find a sponsoring broker to become licensed.
- Knowledge Sets You Apart: Understanding leasing, valuation, and investment strategies is major. Earning credentials like CCIM or SIOR also helps establish your credibility in the industry.
- Experience and Networking Matter: Training and making connections through industry groups can boost your success. Clients and mentors typically come from active networking, after all.
- Success Requires Commitment: Agents have to stay in the loop, be adaptable, and self-motivated. Ongoing education and keeping a cool head are your ticket to growth.
What’s a Commercial Real Estate Agent?
Commercial real estate agents help clients buy, sell, lease, and manage properties used for business purposes. Unlike residential real estate agents who deal with homes and apartments, commercial agents focus on properties like office buildings, retail space, shopping centers, industrial space, hotels, and multifamily units.
It is substantially more complex than residential real estate, and there are probably fewer agents, but their level of service, experience, and sophistication are often much higher.
(Deal times are also much longer, often years.)
Facilitating commercial real estate transactions and negotiating lease agreements for large office spaces only scratches the surface, though. These professionals evaluate market trends, analyze property data, and present clients with commercial real estate offers that align with their business purposes and financial abilities.
Commercial vs. Residential Real Estate Agent Salary
When comparing commercial real estate and residential real estate, income differences often play a major role in deciding a career path. Residential agents typically close more deals per year, but commercial deals tend to yield higher commissions due to the scale + complexity of commercial properties.
Many say real estate is one of the only careers you can make unlimited money in or work 70 hours a week and make nothing. So, either way, you’ll be making money. It will take you a few years to find your footing, though.
Most agents in residential real estate earn their income through frequent, small transactions. In contrast, commercial real estate agents typically work on fewer but larger commercial transactions. While the average salary for residential real estate agents is $119,000, commercial agents can earn a (whopping) $236,000.
Keep in mind that your earning potential depends on factors like experience, location, specialization, and ability to work alone/often. If you dedicate all of your time to real estate, you’re naturally going to make more money.
How to Become a Commercial Real Estate Agent in 8 Steps
If you’re serious about commercial real estate, keep reading. There’s a lot involved, and you’ll need a thorough understanding of the industry before jumping in.
Step 1: Understand the Industry
Before pursuing your license, take time to understand how the commercial real estate industry works. Learn the distinctions between commercial and residential real estate, and identify which types of commercial real estate align with your interests, like industrial space, office buildings, or retail.
Agents focus on properties used strictly for business purposes. Commercial real estate transactions also involve more complex processes, making professional development and an extremely firm grasp of market data important.
Step 2: Get Your Real Estate License
Easier said than done, right? (That ultimately depends on your state and its requirements.)
Obviously, you can’t sell commercial real estate without a valid real estate license. Licensing requirements are generally the same for residential and commercial agents, though, so that’s good news for most.
Here’s how to get licensed:
- Complete pre-licensing education through an approved program.
- Pass the licensing exam in your state.
- Submit a license application and background check.
- Find a sponsoring broker (preferably one that works in commercial real estate).
- Complete post-licensing education if your state requires it.
- Stay up to date through continuing education and other resources.
Some prospective agents choose programs from providers like Colibri, which offers flexible online courses to meet licensing and CE requirements. I wrote a detailed review of Colibri if you’re interested.
Step 3: Learn About Commercial Transactions
While residential training is sufficient to pass the licensing exam, commercial agents need “specialized” knowledge. Educational programs in commercial real estate teach topics like leasing transactions, property valuation, market analysis, and investment strategies.
You can also pursue credentials like these:
- CCIM designation
- SIOR membership for office and industrial specialists
- Accredited Land Consultant (ALC) certification
These programs are committed to helping distinguish you from residential real estate agents who have just entered the commercial market. Meaning they’ll help you stand out.
Step 4: Gain Experience
Find training and a niche.
You don’t want to be the commercial agent at a residential brokerage. Put in the work to learn your niche. It will take time, but unless you do that, you are misrepresenting your clients (because you won’t know what you’re doing).
Book learning isn’t a substitute for real life!
Step 5: Build a Professional Network
“It’s all about who you know.”
Networking opportunities are the key to growing a successful career in real estate. Join associations like:
- National Association of Realtors (NAR)—the largest trade association in the industry
- Commercial Real Estate Development Association (NAIOP)
- Local real estate investment groups
These organizations help you meet other agents, connect with potential clients, and learn from senior advisors. In-person events, industry panels, and online groups will give you access to tools, other agents, and market insights that can guide you down your path.
Step 7: Build Your Client Base
To succeed in commercial real estate, you’ll need to constantly be on the lookout for clients. Cold calling, online marketing, direct outreach, and referrals from other agents all help you build your business. Your client base may include buyers, sellers, landlords, tenants, or investors. Stay self-motivated, track market trends, and show clients that you’re a smart negotiator and excellent problem solver.
Step 8: Stay Committed and Keep Learning!
Commercial agents have to constantly adapt to changing market conditions. They fluctuate like waves in the ocean.
Stay current with training opportunities, keep your license active through CE courses, and participate in advanced certification programs. Use property data and market trends to guide your deals. You’ll also benefit from working with a brokerage firm that provides extra education and mentorship.
Final Verdict
Becoming a commercial real estate agent takes time, dedication, and the right training, but the rewards can be substantial. The best piece of advice I’ve seen given to those who take this career path is to keep a level and cool head. You’re going to need to learn patience and how to find your inner “whoosah” for this one.
If you can keep perspective and have the self-confidence to move forward when something falls apart, you’ll do great. Your blood pressure will also greatly thank you.
Regardless of your decision, I wish you the best!
FAQs
Commercial real estate agents help their clients buy, sell, lease, and manage properties used for business purposes, like office buildings, retail centers, industrial sites, and multifamily units.
Commercial real estate deals are generally larger, more difficult, and take longer to close than residential deals. Agents typically work on fewer transactions but with higher commission potential.
According to Glassdoor, commercial real estate agents earn a median salary of around $260,000 annually, though income depends heavily on location, experience, specialization, and work ethic.
No special license is required. Agents have to obtain a standard real estate sales license in their state, the same one used for residential real estate.
The timeline varies, but most can complete licensing requirements in a few months. Getting experience, finding a niche, and building a client base takes additional time and serious effort.
