Success in commercial real estate does not come easily. The market can change unexpectedly and vary dramatically depending on your work location. Consequently, strategies that lead to success in one city might be less effective in another. However, even with these variations, there are six pillars of commercial real estate that ring true no matter where you work. These pillars can guide you through the entirety of this complex process and navigate the commercial real estate business to set you up for success.
Commercial real estate professionals should never stop learning. New strategies, financing options, properties, and other considerations are always worth exploring. Prioritizing education can help ensure your practices are current and effective. This can be done through online courses, local seminars, or even just connecting with other professionals in your network.
Being honest and trustworthy is critical in real estate. Whether purchasing investment properties for yourself or helping clients navigate the process, you must prioritize integrity. If you build a reputation for cutting corners and being dishonest in your dealings, you will quickly lose the upper hand in the market.
Knowing the local market conditions and finding the best deals can help reduce the chances of running into problems down the road. No matter what side of commercial real estate you work in, knowing fair market pricing and having the ability to negotiate strategically makes a huge difference.
Clear communication with clients, colleagues, and other stakeholders goes a long way. Don’t give clients unrealistic expectations about what they can afford or how long the process will take. Ensure everyone is on the same page every step of the way to minimize unpleasant surprises that can lead to delays or losing a deal.
Always have a plan, goals, and a well-thought-out strategy. Going into commercial real estate without a clear plan leads to hasty decisions and lost revenue. A strategic vision helps guide your next steps and increases consistency in performance over time.
Finally, commercial real estate is not a passive profession. If you aren’t actively networking within your community, checking in with clients, or keeping up with new listings, you’ll be easily outperformed by other agents. Don’t wait for the perfect deal or opportunity to come to you–take active steps to seek them out.
These six pillars of the commercial real estate industry are applicable no matter where you work or the kind of real estate business you run. Whether you operate as an independent investor or a residential agent, forming your practice around these six pillars will help you build a strong foundation and work towards success in your career.
Based in Alexandria, Louisiana, Justin Giallonardo is a skilled commercial real estate and construction professional, a dedicated community member, and a loving family man.