How to be Successful in Commercial Real Estate
Commercial real estate is a dog-eat-dog world. When I was first getting started in the commercial real estate industry, I was fortunate enough to have interned under some of the most amazing mentors. Joe Maiolo, who has been a broker since 1964, and my father, Bruce Romano, who has been a broker since 1974, really paved the way for me. They were able to give me insights and advice on how to be successful in commercial real estate. I was able to effectively learn from their insights and model their behaviors to become a more knowledgeable and successful broker. In this blog, I will be breaking down the insights they passed on to me when I first started and had no idea about how to be successful in commercial real estate.
How to be Successful in Commercial Real Estate
Know the Market
Regardless of what industry you are in, the most successful people are the ones who know the market and who have mastered their craft. You may be wondering, "What does know the market actually mean?" In a nutshell, knowing the market in the commercial real estate world means that you know the tenants in your specific market place, the prices, the competitors, the owners, the current supply of available buildings, the demand, the comps, etc. A broker will not be successful if they do not have market knowledge. Why would someone hire you if they know more information about the market then you?
One way to get more market knowledge is to study the supply of available buildings daily. There are services, such as Xceligent, that provide daily updates to buildings that either were just listed, leased, and/or sold for your convience. A second way a broker develops market knowledge to become more successful in commercial real estate is just plain ol' fashion experience. Researching and studying the market 24/7 is truly the best way to develop more market knowledge. If you are studying everyday, I guarantee that your knowledge will surpass a few veteran brokers.
The next key aspect on your journey to become a successful commercial real estate broker is to have high energy. High energy simply means that you need to show up everyday (yes, even weekends) and give it your all. You can't have high energy for only one day or one week or even a month. You need to have high energy year after year. I first observed this by watching Joe Maiolo. Even after 53 years in the commercial real estate industry, Joe Maiolo still has more energy then new brokers! During the first week of working with Joe, I felt like I couldn't keep up with him. However, his energy rubbed off on me and I began to have a similar energy frequency. I noticed that I was developing better leads and landing more deals once I started exerting higher energy. You have to love the game and continue to put in all your effort if you want to be successful in commercial real estate.
I don't think anyone wants to hire a broker who does not exert high energy. A client wants to know that their broker is doing everything possible to help them with their real estate needs. They want the broker that can get the work done quickly and efficiently. High energy will be an esstential aspect in learning how to be successful in commercial real estate.
Just like any other business, your client should always come first. If you spend more time making sure that your client is receiving the best and most information from you, you are delivering them everything in your power, and you interact cohesively, I am almost certain that you will have more clients coming your way. Why am I certain of this? I am certain of this because if you treat your client right, you have a better chance of receiving a referral from that client. Referrals are like broker gold. The referral comes to you and knows that you are qualified broker that they can trust.
Meet with Successful Brokers
I have to thank my father for this one. I went to my father when I was trying to learn how to be successful in commercial real estate. He gave me the idea to contact successful brokers in the area in which I worked and set up lunch meetings with them so I could pick their brains. I found this to be a huge part of being successful in commercial real estate. I was asking them questions like; how do they develop leads, what multiple listing service they use, how have they become so successful in commercial real estate, and others.The brokers I met with gave me wonderful insights and advice that was very beneficial to me starting out. It also put me ahead of other newer brokers because I was meeting and creating business relationships with experienced and successful brokers. I learned a lot from those meetings and I am very grateful that they took time to meet with me for over a hour.
Become More Knowledgeable
This one should be a no brainer, but to be successful in commercial real estate you should always be trying to become more knowledgeable about the field. Whether it means studying leases, studying the supply of buildings, developing better sales skills, developing better negotiation skills, etc., brokers should always be trying to learn more. I noticed that all the successful brokers I ran into, they all continue to ask questions in order to learn more, so they can stay at the top of their game.
If you are wondering how to become successful in commercial real estate, I would recommend following the steps above. After meeting and interning with successful brokers, I have come to realize and observe that all the top brokers have displayed all of the above traits.
Please contact us if you ever have any commercial real estate needs.
-Kevin Romano, INCO Commercial Brokerage, Senior Associate
(714) 521-0800 ext. 2