How to Become a Commercial Real Estate Broker in 11 Steps

As a new commercial real estate broker, you will have access to be able to help your clients find properties and homes in the most competitive markets. Lending your knowledge of this industry can also give you an edge over other brokers trying to break into it.

The “commercial real estate broker salary” is a difficult career to break into. However, it is possible for those who are willing to take the time and put in the effort. The article will show you how to become a commercial real estate broker in 11 steps.

Office buildings, hotels, industrial parks, and retail spaces are all sold by commercial real estate agents. Business brokers, unlike residential brokers, assist customers in navigating zoning restrictions and other barriers specific to commercial listings. Gain experience as a general real estate agent before passing the broker’s test and expanding your network to become a commercial broker.

Following the completion of your real estate broker’s license, you must maintain your qualifications by completing continuing education credits. Commercial real estate-specific continuing education courses are available via Real Estate Express, which may assist brokers who are currently working in the business. Additionally, all members get access to the site 24 hours a day, seven days a week, allowing you to study on your own time. To get started, go here.

Use the coupon code FSB25 to get a 25% discount on any Real Estate Express class for Fit Small Business readers.

In 11 easy steps, you may become a commercial real estate broker.

1. Recognize the requirements for commercial licenses in each state.

Most states demand a commercial salesperson’s license and at least one or two years of experience as a licensed agent before you can become a commercial real estate broker. Visit your state’s real estate board to learn about local criteria like as real estate education, agent experience, and tests before you begin the licensing process. To understand more about state-specific criteria, look at the map below.

The following are some of the most common state real estate broker licensure requirements:

• Minimum age: Most states allow people to apply for a real estate license if they are 18 years old or older; however, certain states need you to be older before applying.
• Many states need you to be a resident of the state in which you are seeking for a license, while others just require you to be a citizen of the United States.
• All states require prospective brokers to have at least one year of relevant experience as a licensed real estate agent in the state; several jurisdictions need two years of relevant experience.
• Prelicense real estate education: Before taking the licensing test, applicants for the salesperson’s and broker’s licenses must complete a certain number of state-specific real estate education courses.
• Broker’s license test: Including real estate salespersons, prospective brokers must pass a written exam that covers topics like contracts, finance, and agency law.

After you’ve satisfied all of the eligibility criteria and are familiar with your state’s prelicense requirements, the next step is to study for and register for the commercial real estate agent test or broker courses, depending on where you are in your career.

By state, choose an article on how to become a real estate agent. How to Become an Alabama Real Estate Agent How to Become an Alaska Real Estate Agent How to Become an Arizona Real Estate Agent How to Become an Arkansas Real Estate Agent How to Become a California Real Estate Agent How to Become a Colorado Real Estate Agent How to Become a Connecticut Real Estate Agent How to Become a Delaware Real Estate Agent How to Become a Florida Real Estate Agent How to Become a Georgia Real Estate Agent How to Become a Hawaii Real Estate Agent How to Become an Idaho Real Estate Agent How to Become an Illinois Real Estate Agent How to Become an Indiana Real Estate Agent How to Become an Iowa Real Estate Agent How to Become a Kansas Real Estate Agent How to Become a Kentucky Real Estate Agent How to Become a Louisiana Real Estate Agent How to Become a Maine Real Estate Agent How to Become a Maryland Real Estate Agent How to Become a Michigan Real Estate Agent How to Become a Minnesota Real Estate Agent How to Become a Mississippi Real Estate Agent How to Become a Missouri Real Estate Agent How to Become a Montana Real Estate Agent How to Become a Nebraska Real Estate Agent How to Become a Nevada Real Estate Agent How to Become a New Hampshire Real Estate Agent How to Become a New Jersey Real Estate Agent How to Become a New Mexico Real Estate Agent How to Become a New York Real Estate Agent How to Become a North Carolina Real Estate Agent How to Become a North Dakota Real Estate Agent How to Become an Ohio Real Estate Agent How to Become an Oklahoma Real Estate Agent How to Become an Oregon Real Estate Agent How to Become a Pennsylvania Real Estate Agent How to Become a Rhode Island Real Estate Agent How to Become a South Carolina Real Estate Agent How to Become a South Dakota Real Estate Agent How to Become a Tennessee Real Estate Agent How to Become a Texas Real Estate Agent How to Become a Utah Real Estate Agent How to Become a Vermont Real Estate Agent How to Become a Virginia Real Estate Agent How to Become a Washington Real Estate Agent How to Become a West Virginia Real Estate Agent How to Become a Wisconsin Real Estate Agent How to Become a Wyoming Real Estate Agent

2. Enroll in commercial real estate courses that are required.

Prelicensing real estate education courses are required in every state for prospective real estate agents. State requirements vary, but most courses need between 60 and 150 hours of study and cost between $600 and $800. Learn about course prerequisites and sign up for online or in-person lectures by contacting your state’s real estate board or an online real estate school.

Prelicensing classes often address subjects such as real estate law, mortgages and finance, and contracts. In-person lectures and online-only alternatives with pre-recorded lectures and online or print materials are available from education providers. Most states require you to pass the course provider’s test and present a certificate of completion when registering for the licensure exam once you’ve completed the courses.

3. Pass the Agent Exam & Apply for a License

Before becoming a commercial agent, you must pass your state’s licensing exam in addition to completing a test as part of your state’s prelicensing education requirements. Register for the exam on the website of your state’s real estate commission, then bring the appropriate materials to the testing place on the specified test day. Several pieces of identification, evidence of school completion, and test-taking aids such as a basic calculator are often included.

The amount of test questions varies by state, but every real estate exam contains multiple-choice questions that cover both national and state-specific topics and lasts around two hours. Most states will notify you immediately if you passed the exam after it is completed. You may go to the state’s real estate website and fill out an application for a real estate license with evidence of this, which is available at most test facilities.

4. Pick a Commercial Real Estate Market to Invest In

Consider your preferred market and the sort of real estate you want to sell as you study for the commercial real estate salesperson’s licensure test. Choose the commercial properties you wish to specialize in if you’re already established in a city and aim to become a commercial broker in the future, such as office buildings, restaurants, or retail. Then concentrate your agricultural efforts in places where there are several of these business properties.

If you want to start as a residential agent and work your way up to commercial broker, make sure you choose a community with a thriving business area. Finding a location that has both residential and commercial possibilities allows you to start building your local network and familiarizing yourself with the commercial environment while building your domestic company. You’ll be in a better position to establish a commercial brokerage after passing the broker’s test.

5. Work as a real estate agent to get experience.

To earn a broker’s license, all states need at least one year of experience as a licensed real estate agent. Many jurisdictions, such as California and Florida, need two years of experience as an agent, while others, such as South Carolina, require three. Create a good online presence, improve your listing materials, and concentrate on obtaining transaction experience to achieve the sort of agent experience that’s crucial to your success as a commercial real estate broker.

6. Build a Brand & Network

Prior to becoming an independent broker, real estate professionals should concentrate on expanding their network in addition to getting experience as a commercial real estate agent. When you first enter the business arena, this will provide you with a safety net. You’ll already have local property expertise, mentor relationships, and referral possibilities. Perfect your web presence and establish yourself as a real estate specialist in your rural region to do this.

7. Obtain a Qualifying Commercial Broker’s License by completing the required courses.

Before obtaining a license, all states require potential commercial brokers to complete extra real estate courses. Sign up for one of the broker education courses allowed by your state licensing board after acquiring your commercial real estate salesperson’s license and working as an agent in the state for the required period of time. Give yourself a few months to finish it.

The themes included in broker licensure classes vary by state, but they often include real estate practice, real estate valuation, and other forms of legislation. Keep in mind that the training requirements for residential and commercial brokers are the same, although certain states may provide courses tailored to commercial agents, such as commercial real estate ethics. The needed amount of credits and allowed course providers vary by state, so check with yours before enrolling.

8. Pass the Commercial Broker’s Exam & Apply for a License

Register for and pass the real estate broker’s licensure test after completing qualifying broker courses and satisfying any extra criteria, such as a background check. Exam prep companies often promise high pass rates, with the top boasting figures of about 90%. Test material and processes for real estate broker certification are very state-specific, so contact your state’s real estate licensing board to learn more about your exam.

Make sure you know what to do once you pass the test, in addition to satisfying the exam eligibility conditions. At this step of the process, many states have extra application requirements, such as completing advanced real estate coursework and submitting a final application with your test results. Always check the website of your state licensing board to make sure you understand the whole broker licensing procedure.

9. Begin as a commercial broker who is self-employed.

Commercial brokers may operate without the supervision of another licensed real estate professional; this might be intimidating, particularly in a competitive market, but it also allows you to develop your brand and customers. Learn broker-specific legislation and avoid common errors to make your career as a broker profitable.

Learn about the laws and procedures that apply to commercial brokers.

Familiarize yourself with the procedures that vary from residential real estate before starting a brokerage or working as an individual broker. Real estate valuations and zoning and use restrictions are the two main areas of distinction. Although there are more, it is critical to acquire a firm grip on these before attempting to practice.

Commercial evaluations are often more sophisticated than residential appraisals, so it’s important to understand what elements go into an appraisal, what sorts of reports you might get, and how various forms of property ownership rights affect evaluated value. Consider taking a continuing education course on this topic via the NAR, or look into comparable courses offered by other continuing education providers.

Commercial zoning and use rules are likewise much more complex than residential zoning and use restrictions. When you first start out as a commercial broker, acquaint yourself with local legislation by contacting your city or county zoning department and working with local agents and brokers. After you’ve mastered the local zoning code, learn about the land use regulations that apply to each new business property you come across.

Avoid Making Common Errors

Many novice brokers make the mistake of thinking about commercial real estate sales as residential sales, which leads them to trip over distinct procedures and tools. Choosing the right brokerage management software, investing in relationships with local brokers rather than focusing on the competition, and finding a commercial real estate customer relationship management (CRM) tool that allows you to generate quality leads are all important whether you’re starting your own brokerage or working independently.

10. Create a marketing strategy for commercial brokers.

Develop a marketing plan that includes SEO tools, email campaigns, and social media advertisements to help you build your brand and reputation. Create high-quality, industry-specific material for your website to help you establish a reputation as a competent broker who keeps an eye on the local commercial market. Paid advertising such as Facebook Ads and Google Ads may also help you reach a wider audience.

Furthermore, IDX-enabled and listing-specific websites are especially well-suited to commercial properties, allowing brokers to showcase everything from listing photographs to amenities, nearby public transit, and walking scores. Commercial real estate listing services such as CoStar and LoopNet may also help you get more exposure for your properties.

An internet data exchange (IDX)-enabled website is seen in this screenshot.

11. Keep Up With Networking & Continuing Education

Once you’ve obtained your commercial real estate broker’s license, you’ll need to keep it up to date by completing continuing education requirements. Continuing education needs differ by state, so learn about your state’s requirements and schedule time to complete the required courses. Commercial Ethics, Anatomy of a Commercial Building, and Client Advocacy in Commercial Real Estate are just a few of the courses available to help you advance your commercial real estate knowledge.

Also, remember that just because you have your broker’s license doesn’t mean you can’t network in your neighborhood. Having an experienced mentor and a solid network of agents may actually make the shift to commercial broker job easier. Expanding your network will also make it simpler for you to expand your brokerage when the time comes, and will provide you an edge with customers looking for commercial properties outside of your core area.

Most Commonly Asked Questions (FAQs)

What Are the Earnings of Commercial Real Estate Brokers?

A commercial real estate broker’s income is mostly determined by where they work. However, according to Glassdoor, the typical yearly base compensation for a commercial broker in the United States is $65,000. Brokers in commercial real estate often receive 4% to 6% of the acquisition price, which is shared between the purchasing and selling brokerages.

Is it true that commercial real estate agents earn more than residential real estate agents?

The typical commercial real estate agent earns $85,000 per year, compared to $39,300 for residential brokers, according to Monster. Average wages, on the other hand, are highly dependent on the market, and they might differ significantly between residential and commercial brokers.

To Become a Commercial Real Estate Broker, How Long Does It Take?

The time it takes to become a commercial real estate broker varies depending on where you live. To become a real estate salesperson, most states demand between 30 and 90 hours of prelicensing education, one to two years of experience, and another 30 to 90 credits of broker-specific prelicensing education. Commercial specialty does not need any additional qualification or education. Residential brokers have a different time schedule, which you can read about in our post on how to become a real estate broker.

What Are the Most Popular Broker Exam Preparation Schools?

Real Estate Express and Kaplan are two popular schools for real estate broker test preparation. Keep in mind that the test curriculum is particularly state-specific, so find a service that provides courses associated with your state exam when choosing a broker exam prep course. It’s possible that a school that only runs in your state is the best choice for you.

What’s the Best Way to Get Started Selling Commercial Real Estate?

To sell commercial real estate effectively, you must first pass the real estate agent licensure test, then join a commercial real estate firm or brokerage. Once you’ve been employed, start reaching out to venture capitalists and real estate investors in your region who are involved in commercial ventures. Take continuing education programs in commercial real estate-specific disciplines like commercial appraising and zoning as well.

Conclusion

Commercial real estate brokers may represent buyers and sellers of real estate without the help of other real estate professionals. As a result, obtaining a broker’s license requires taking a number of real estate courses, acquiring experience as an agent, and passing a broker’s test. While commercial brokers do not need to be certified to specialize, broker license standards differ by state, so check with your local real estate board for additional information.

Maintain your continuing education credits with Real Estate Express after passing your broker’s test and earning your commercial real estate broker’s license. Legal and procedure courses, as well as niche-property training, will help you keep your broker license current while also teaching you more about the commercial real estate sector. To get started, go here.

Real Estate Express is a website dedicated to real estate.

The “commercial real estate agent training” is the first step to becoming a commercial real estate broker. The next steps are to pass the licensing exam, then get your license.

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