Is a Career in Commercial Real Estate Right for You?

Commercial real estate is not a one-size-fits-all field. As a commercial realtor, you can specialize in selling, leasing, industrial properties, retail plazas, land, apartments, and much more. Each niche comes with its unique set of challenges and rewards. For instance, you might work with nursing homes, operating agriculture, mining operations, gravel pits, airports, or any other specialized property. The field is incredibly broad and offers a wealth of opportunities for those interested in the business.

Multifaceted Opportunities

While the term "commercial" may initially seem straightforward, it encompasses a wide array of activities. You can also engage in appraisals and development. This complexity isn't just limited to the property types but also extends to the various stages of a commercial real estate transaction. Whether you are dealing with industrial spaces, retail locations, or specialized properties such as nursing homes or mines, there are numerous niches to explore.

Benefits of a Career in Commercial Real Estate

Exploring commercial real estate can provide unique insights into the local economy. By working with various businesses, you can see firsthand how they thrive or struggle, which can be an invaluable experience. Additionally, the field can be less stressful compared to the residential market. While residential real estate often involves emotional transactions, commercial real estate is typically more logical and data-driven. Furthermore, the pay in commercial real estate is often high due to the higher value of deals. The deals might range from a few million dollars to in the tens of millions, offering lucrative opportunities.

Personal Insights and Career Performance

After 39 years in the real estate business, the last 15 of which were dedicated to commercial real estate, I can confidently say that it has been the most interesting and profitable chapter in my career. Having worked as a commercial realtor, I have seen firsthand the dedication and skills required to succeed in this field. If you are clever, hardworking, good with numbers and facts, and possess excellent communication and building skills, you will no doubt excel. Additionally, you need to have integrity, diligence, discipline, and loyalty.

Challenges and Adaptations in the Industry

The commercial real estate market is highly competitive, with numerous agents vying for the same high-value deals. Typically, only a few agents will secure the sales or purchase clients, leaving the rest of the field with fewer lucrative opportunities. However, there are those who have found innovative ways to stay relevant. My current agent, for example, creates unique deals by identifying off-market properties and making higher than market offers, which often entices property owners to sell. They also participate in joint venture deals, ensuring that everyone involved makes a profit.

For those considering a career in commercial real estate, the market has become increasingly demanding. Young commercial realtors, like one I know who won't consider deals under six million, are now seeking high-value opportunities. Experienced commercial realtors, on the other hand, are often offered deals in the twenty to fifty million dollar range.

Despite the challenges, many commercial realtors continue to thrive. I have yet to hear of anyone who ceased being a commercial realtor, and none of them ever engage in residential sales, suggesting that the field offers a stable and fulfilling career path.

Reflecting on my experience, I often think that if I had it to do over, I would indulge in becoming a commercial realtor and subsequently a commercial developer. The unique blend of business acumen, market knowledge, and the ability to navigate a complex landscape make this career path both challenging and rewarding.