How to get into commercial real estate in 2023
If you’re here, you’re probably on the hunt for a way to break into the commercial real estate game.
Whether that’s brokerage, development, investment or another angle, there are a few key steps you should take to get started. Here’s how to get started in commercial real estate in 2023:
Up first, educate yourself
The commercial real estate market can be complex and nuanced, so it's important to do your research and gain a solid understanding of how it works. This can include:
● Reading industry publications, from groups like the Urban Land Institute (ULI) and CCIM
● Attending seminars, workshops, or taking online commercial real estate courses
● Watching YouTube videos (like this one here) or listening to podcasts on the go
● And, of course, networking with other professionals in the field
Not only will you get a better grasp of how the industry works as a whole, but you’ll be creating relationships that will help you land a job opportunity or get deals across the finish line in the future.
2. Then, determine your focus
The commercial real estate market is broad - incredibly broad - and includes many different types of properties, from strip centers and warehouses to hotels, office buildings, self storage, and more. It's important to decide which type of property you want to specialize in and focus your efforts on building expertise in that area. That’s not to say that you can never work on multiple different types of properties - at my development firm, we have just about everything from simple retail renovations to mixed-use town center developments. But it will help getting started to gain specialized knowledge and expertise in one area. That will help you understand how to look at deals faster, find better opportunities, and build a solid network.
3. Build your team
Commercial real estate is a team sport. While there may be individuals out there who appear to be the sole member of their ventures, they will often have a support team around them helping with:
● Site selection
● Land use and planning
● Financing
● Architecture, engineering, and construction
● And more throughout the process
Success in the commercial world really requires a team approach. It’s next to impossible to become an expert at every single aspect of a deal, so you'll want to find the professionals who can help you navigate the market and successfully close out projects. This team can include brokers, lawyers, lenders, and other advisors.
4. Get Licensed
Getting my real estate license was one of the best moves I made in the commercial real estate game.
Not only did it help me get a job as a commercial broker where I could learn how these deals work from the ground up, but I was also getting paid to learn! And it’s not a bad way to maintain cash flow for yourself while you’re going through your initial investments.
Depending on which direction you decide to take, you may be required to have your license in order to legally work in the commercial real estate market. You’ll need to complete a certain number of educational hours and pass a licensing exam, which can be accomplished in a few weeks at a relatively low cost.
Now, I know getting licensed isn’t for everyone since you would need to make it a full time job for it to make sense, but it can be a benefit to you in the long run.
5. And again - network, network, network
Real estate, in general, is all about who you know.
The more brokers you know, the easier it will be to find deals. The more people you know in the capital markets world, the easier it will be for you to fund that deal. And if you’re looking to land a job in commercial real estate, everyone you know and network with could be a potential employer or partner down the line.
Over the years, many of my brokerage clients became development partners. By building a relationship with them while selling or leasing their development projects, I learned more about how they work and what they look for and have been able to put together many deals that way. You can meet these individuals through:
● Cold calling and emailing (LinkedIn can be pretty good here)
● Social media - slide into those DMs (I have people interested in commercial real estate do this to me all the time)
● Attending industry events, such as ULI’s annual Emerging Trends or local real estate investors groups
● Asking you network for referrals to groups they know
By diving all-in to the market this year and not just dipping your toes in the water, you can break into the commercial real estate game through educating yourself, figuring out which sector of the industry you want to focus on, building the right team around you, and being intentional about networking
Navigating the bustling, high-energy atmosphere of these events can be challenging for those of us who find large crowds and constant networking a bit overwhelming. However, through my experiences, I've discovered a few strategies that have helped me make the most of these conferences, even as an introvert.