A Guide to Becoming a Successful Commercial Real-Estate Agent

Thriving as a commercial real-estate agent requires a lot of dedication to the field. If you’re entering the field under the presumption that you’ll make money quickly in a minimal amount of time, you’re very wrong.

Working as a commercial real-estate agent requires a whole lot of work and even more perseverance. Without the right set of soft skills and work ethic, it becomes impossible to flourish in such a dynamic field.

If you’re interested in becoming a successful commercial real-estate agent, here’s what you need to think about:

Income

A commercial real-estate agent’s salary is primarily based on commissions. There are large real-estate firms that provide a basic supplemental salary and may even let guarantee a small amount of money for every sale but generally a commercial real-estate agent’s salary comprises of commissions.

Just like a residential real estate agent, commercial agents take around 3% of the closing amount as fee. Most brokerages usually will receive 35–40% of the fee while the agent keeps the rest.

Bear in mind that commercial real estate deals don’t close as fast as residential real estate deals; it can take up to a year to negotiate price, secure financing, sign documentation, close escrow and obtain ownership.

Compared to purchasing property, leasing transactions do take less time but for the real estate agent to receive commission, they’ll have to wait until the lessee assumes tenancy.

A commercial real-estate agent needs to get used to the idea of receiving paychecks irregularly. They’ll need to get comfortable with receiving paychecks irregularly; it can be months before they get paid for a sale they closed now.

Successful commercial real estate agents have a financial cushion that they can rely on for year’s worth of expenses. These funds are very important at the prime of your career when you have limited connections in the business and finding clients is tough. The financial cushion also comes in handy when the market isn’t doing well.

Personal Qualities

Real estate agents of any kind have to have to be superb salesmen. As you progress in your career, you’ll build a network of power players in the market consisting of competitors and potential clients.

As a commercial real estate agent, you’re expected to seek out leads. Get ready to introduce yourself in corporate gatherings and pass along business cards. Real estate agents are expected to be socially confident, persistent and incredibly patient. They need a level of charm and charisma to win over complete strangers as their client.

If you think you have what it takes to be a thriving commercial real-estate agent in Toronto, email us your resume . At Pivotal Commercial Realty, we’re always looking for new talent to join our team!