What Does a Commercial Real Estate Job Entail?
Real estate jobs in the commercial sector include positions for real estate brokers and sales agents. People in both occupations work evenings and weekends, although much of the work is also done during normal business hours. These individuals are on call nearly all the time to meet the needs of business professionals seeking real estate land for development, retail property, or office space.
Commercial real estate jobs as agents and brokers require state-issued licenses. Each state, and the District of Columbia, sets the educational requirements for students. Generally speaking, these requirements can take six to twelve months to complete. All states also require testing in order to acquire the license needed to provide services within the given state.
Types of Work You'll Do
As with all jobs in real estate, as a commercial agent or broker, you will work to meet the needs of the client. This often includes services to the property's buyer and the property's seller. Initially, working as a real estate agent will require finding a broker to agree to work with you. This is relatively easy, but it should be noted that there is no guarantee of employment or compensation unless sales are made. Therefore, when choosing the best job in real estate for you, be sure to consider the amount of competition the real estate broker has, including other agents with more experience who are working for the broker.
Jobs for real estate commercial agents require an in-depth understanding of the real estate market, including:
- Knowledge of local zoning requirements
- Ability to calculate values of commercial properties, including business valuation
- Legalities of commercial property exchanges, including title work and contract work
- Tax laws regulating investments into commercial real estate
- Negotiation skills to provide for the best investment for your client
- Local area knowledge to insure that all buyers and sellers find the property appropriate for their particular needs
- Education in real estate financing in order to provide clients with information they need to find loans, secure them, and transfer the funds appropriately
Commercial agents work with sellers to market their properties and work to find prospective buyers for them. Agents must show the value of the property through value calculations, taking into consideration the location, volume, and size of the facility. Seller's agents must show a given property, negotiate for property offers, and finalize contracts for the sale of the property to transfer the property from the seller to the buyer.
Brokers and agents work together to perform the duties of real estate commercial sales. Entry-level jobs in real estate require a license and an offer from a broker to work with you. Brokers then work to teach the licensed new agent the business practices within their franchise or private business. Brokers take a percentage of the real estate agent's commissions for providing these services.
How Much Will You Make?
As with all real estate jobs, the amount of income earned is nearly always commensurate with the number of properties sold. Most agents earn commissions of between five and 7%, of which one to 2% is paid to the broker.
In the real estate industry, even the best commercial real estate jobs are dependent on the economic conditions of the local area. In times when the economy is doing poorly, the real estate industry often sees fewer sales. This is especially true for businesses, which often go out of business during times of economic weakness.
In addition, interest rates affect the number of buyers as well. When interest rates are high, the number of properties for sale grows, while the number of buyers lessens. When interest rates are lower, more people can afford to get into business and purchase commercial real estate. Therefore, sales are better.
Job Outlook for Commercial Real Estate Agents
The job outlook for commercial real estate agents in the coming years is positive. The current market is saturated with properties, and interest rates are low. Once the economy improves, commercial real estate agents will see a new interest in commercial properties, especially in local communities. In the long term, those agents able to move from entry-level real estate jobs to broker positions can count on excellent financial returns in the coming years.
Currently, however, competition for these jobs is actually waning as more people leave the real estate industry for more steady work.
