Prevent being overloaded by countless requirements and mind-numbing statistics when seeking a new commercial property. Using a commercial real estate broker can help you locate and close on a suitable property for your business and brand.
Outlined below are the full scope of a commercial real estate broker, their average salary, the licensing qualification process, required skills, and responsibilities.
What is a Commercial Real Estate Broker?
A commercial real estate broker is an expert in the commercial property field who helps clients navigate the complicated process of buying, selling, or leasing a commercial property.
Commercial real estate brokers specialize in locating, renting, leasing, and selling office spaces and/or buildings, hotels, industrial centers, and retail spaces.
Commercial brokers can also help their clients navigate zoning requirements, connecting them with potential tenants, vendors that handle maintenance and upkeep, and other responsibilities unique to commercial properties.
Skills and Responsibilities of a Commercial Real Estate Broker
A commercial real estate broker can assist both buyers and sellers with property transactions, often advising them on the property’s benefits and concerns like:
- Area crime statistics
- Traffic challenges in the area
- Legal issues like zoning laws
Brokers also oversee the business operations within a real estate establishment, including the supervision of activities of real estate agents and managing the budget. A real estate broker possesses the necessary skills to handle such tasks. Not only that, a good broker must have excellent communication and negotiation skills to liaise with different parties involved in a transaction.
Where Do Commercial Real Estate Brokers Work?
With a bachelor’s degree or less, you might secure an entry-level position in a brokerage firm. However, brokerage firms may require applicants to possess a college education.
Unlike residential real estate brokers, who are typically self-employed, a commercial broker is more likely to work for a large brokerage firm. Large national and international firms will likely have offices in multiple cities and markets where commercial properties are in high demand.
With growing experience and a large client base, a success-driven commercial broker may consider the entrepreneurial adventure of starting a brokerage business.
How Much Does a Commercial Real Estate Broker Make?
As a residential agent makes a 3% fee on the closing sale or leasing of a property, a commercial agent typically makes the same rate. The firm of the broker and agent will be rewarded up to 40% of that fee.
According to salary.com, the average salary for a Commercial Real Estate Broker is $64,644, but the range can fall between $54,441 and $80,492.
Salary ranges can vary significantly depending on:
- Education
- Certifications
- Additional skills
- Reputation
- Geographic location
- Years spent in the profession
Note: Highly trained, experienced, and successful commercial real estate brokers can make well over $100,000 per year
How To Qualify as a Commercial Real Estate Broker
To become a commercial broker, you should first gain experience as a general real estate agent, then pass your state’s broker’s exam and build your network. Consider the following steps:
- Understand state-specific commercial licensing requirements
- Complete required commercial real estate courses
- Pass the agent exam and apply for your license
- Select a commercial real estate market
- Build your brand and network
- Complete qualifying commercial broker’s license courses (all states require this)
- Pass the commercial broker’s exam and apply for a license
- Keep up to date with your networking and ongoing education
There is no “one” path to becoming a commercial real estate broker. However, licensing requirements in all 50 states dictate that you must have a high-school diploma (minimum) and some experience selling real estate. To become licensed in most states, you must complete between 60-90 hours of classroom training and pass an exam.
Tip: Once you become a licensed commercial real estate broker, you must continuously meet ongoing educational requirements. Such requirements will vary by state, and to maintain your qualification as a commercial broker, you must regularly familiarize yourself with local requirements and make time to take requisite courses.
Related Career Options
A real estate broker could focus their career on selling residential properties, like homes and apartment buildings. Some brokers choose to sell industrial or agricultural properties.
For any real estate broker or related position, a high school diploma and a real estate broker’s license are required. Another lucrative and highly desired option in the commercial real estate industry is working as a commercial appraiser.
Commercial appraisers will evaluate properties like stores, restaurants, and office buildings to determine their value. These professionals will prepare reports and sometimes offer recommendations based on their findings.
Commercial Real Estate Brokers
In this article, you discovered what a commercial real estate broker is, what they can earn, their qualifications, their skills, and their responsibilities.
Hiring a commercial real estate broker will help you purchase, rent, or lease a commercial property without having to deal with the tedious details and nuances of the area and local laws.
Your refusal to work with a commercial broker may land you acquiring a space in an inappropriate or dangerous location while sorting out potentially costly legal mistakes.
