Going for broke(r)

The financial rewards of working in commercial real estate, as well as the opportunity to help shape a community, are major attractions for those considering a career in the industry. And, like the residential side, it offers flexible hours.

But those in the industry say the job is not right for everyone. Successful commercial agents must be visionaries, self-starters, willing to continue learning, and adept at listening.

"Anyone who wants to go into real estate, whether commercial or residential, needs to be good at sales. That's what real estate is all about," said Marge Landry, president and broker of Landry and Associates. "It's great to understand what your client's needs are, but if you can't close the deal, then you need to look for a different career."

Although those on the commercial side often refer to themselves as brokers, because they are brokering a transaction, most hold the same license as residential Realtors.

"For me the primary difference between someone working in the commercial real estate industry versus the residential real estate industry is education and work experience," Landry said.

Residential real estate agents will always deal with selling a house, while commercial agents can help with buying or leasing office space, industrial property, warehouse facilities or raw land, according to Dan Doherty, industrial division senior vice president at Colliers International.

He said real estate licensing schools don't offer enough education to succeed in the industry and one of the best ways to learn about the field is on-the-job training.

Entry-level runners, as they are generally called, usually work 60 to 70 hours a week for between $20,000 and $30,000 a year doing research and what Doherty calls "grunt" work for other brokers. After a year, they remain with the company, but become salesmen and are responsible for their own deals and commissions.

"If I were starting today, I would work with someone on a training basis," said Kevin Higgins, senior vice president of Voit Commercial Brokerage. "Just joining an organization and making calls doesn't work. The brokerage industry is too highly specialized and too highly competitive."

Jim Stuart of Centra Properties worked in commercial real estate for 15 years before starting his own firm. He said having a thorough understanding of how businesses use property, whether as an owner or a tenant, is crucial to serving clients and to establishing long-term relationships.

It's more of a "service mentality. Unlike residential agents whose clients buy a house one time, commercial brokers become an integral part of someone's business," Stuart said.

However, not all agencies offer training programs. The alternative, according to Landry, is to enroll in classes.

"The quicker you learn, the faster you make money," she said.

Degree and certification programs are available through the University of Nevada, Las Vegas, and its Lied Institute for Real Estate Studies. Programs for both those entering the field and those seeking to expand their knowledge are available.

"Our program is pretty thorough. Generally, our instructors are professionals in their fields: lenders, attorneys, commercial Realtors," executive director Debra March said.

Courses required for a bachelor's degree in real estate provide basic knowledge of urban planning, land use regulations, law, finance, investments and appraisals. Upper-division classes are more specialized.

A nine-course certification program specializing in commercial real estate is offered in conjunction with the Southern Nevada chapter of the National Association of Industrial and Office Properties and the Greater Las Vegas Association of Realtors. It focuses on topics such as zoning, land acquisition, risk issues, design, leasing and tax-free exchanges, and provides continuing education units necessary for license renewal.

Supplementing the university's offerings are internship and mentoring programs that match students with professionals to allow them to experience how deals are made.

"Because the industry is so broad, it is important to give students an idea of what is the right mix for them ... whether it be in home building, commercial development or sales," March said.

The same spirit of cooperation found among those mentoring new agents can be found among those working in the field.

"Even though we are competitors, we do work together," Landry said.

She stressed the importance of joining networking organizations and meeting others in the industry, as did Doherty, Stuart and Higgins.

"It's part of the brokerage world, especially in a small town such as this. It gives you a good understanding of the market and a good understanding of the players in the market," said Higgins, president of the Southern Nevada chapter of the Society of Industrial and Office Realtors and a past president of the local chapter of the National Association of Industrial and Office Properties.

Meeting people on a social level makes it easier to work with them professionally, he added.

Landry agreed.

"There's a lot of camaraderie," she said. "About 55 percent of the commercial transactions completed in Las Vegas are co-brokered. Rather than say to your client that you don't have the property and have them hang up the phone, you can call someone and split the commission."

A good education and business contacts are only part of the equation. Successful brokers have to know how to "work hard and work smart," which basically means using common sense, Doherty said.

That, and maintaining a sense of humor, is also helpful, he added.

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