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Guide for Residential Agents Breaking Into Commercial Real Estate:

Posted by webadmin on April 2, 2025
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Breaking Into Commercial Real Estate: A Guide for Residential Agents Ready to Level Up
By Kirk Atamian RE/Max Commercial-Re/MAX Success

If you’re a residential real estate agent thinking about making the jump into commercial, you’re not alone. Many agents reach a point where they start looking beyond open houses and emotional homebuyers for something different—something bigger. Commercial real estate offers a compelling alternative. It’s fast-paced, financially rewarding, and intellectually stimulating. But the transition isn’t just a lateral move—it’s a reinvention.

Commercial real estate is a whole different beast. The clients are different. The transactions are different. The lingo is different. But if you’re willing to learn and take bold steps outside your comfort zone, this can be one of the most rewarding shifts of your career.

Pros and Cons: Know What You’re Walking Into

Let’s start with the pros. The most obvious? Bigger deals. Commercial properties involve larger spaces, longer leases, and higher price tags. That means the potential for much larger commissions than in residential transactions. Another upside is the professionalism of the clients. You’re often working with experienced business owners or investors who make data-driven decisions. That means less emotion, smoother negotiations, and a more logical process overall.

Commercial transactions also tend to be more repeatable. A residential client might buy or sell a home every five to ten years. A commercial client might lease new space, sell an asset, or expand locations multiple times a year, opening the door to a steady stream of business.

But there are cons you need to be prepared for. For starters, you have to find your clients, they rarely come to you. Cold calling, canvassing, and proactive outreach are the names of the game. Also, escrow periods are longer, meaning your first paycheck may be months away. Add in higher marketing costs, and it’s clear that commercial real estate takes upfront investment—both in time and money.

Finding Clients: Get Creative, Stay Consistent

So, how do you start? One proven method is to simply drive around your city. Take note of vacant storefronts, office spaces with “For Lease” signs, or buildings under renovation. Write down the contact info and follow up with the property owner. Offer to help find a tenant. Even if they decline to pay a commission or say they’re already working with someone, the experience of bringing them a deal—and the exposure—can pay off down the line.

Also, tap into your local business network. Talk to your barber, your nail tech, your favorite café owner. Ask if they’re happy with their current space. Are they thinking of expanding? Do they know someone who is? Small business owners often talk among themselves and could refer you to someone actively looking for space.

These early conversations can build your confidence, develop your market knowledge, and lead to your first deal. Remember, your first transaction doesn’t have to be huge. It just has to get you in the game.

Understanding the Language of Commercial Real Estate

One of the fastest ways to gain credibility is to learn terminology. Residential agents are often surprised by how different commercial real estate sounds. You’ll need to be familiar with terms like triple net lease (NNN), CAM charges (common area maintenance), cap rates, TI allowances (tenant improvements), and zoning codes.

The good news? This can be learned. There are plenty of books, online courses, and podcasts dedicated to commercial real estate. Start by focusing on leasing, which is generally more straightforward than sales. Leasing deals can close within 30 days, offer valuable experience, and help build your pipeline of clients and contacts.

Mentorship Matters: Don’t Go It Alone

One of the biggest hurdles in commercial real estate is breaking into an already tight-knit industry. It can feel like a “good old boys’ club” where everyone already knows each other—and outsiders struggle to get a seat at the table. That’s why finding a mentor is so important.

Look for a commercial broker in your market who specializes in the asset type you’re interested in, whether that’s retail, office, or industrial. Offer to assist with showings, research properties, or sit in on client meetings. Even if they’re not actively hiring, many brokers appreciate the extra help and are open to mentoring a motivated agent.

The guidance of a mentor can accelerate your learning curve, help you avoid rookie mistakes, and build your professional network.

Being able to clearly articulate what your client needs shows that you’re professional, informed, and worth working with. It builds trust with other agents and helps you gain access to better opportunities.

 

Final Thoughts: Your Commercial Journey Starts Now

Transitioning from residential to commercial real estate won’t happen overnight. It takes time, research, and serious hustle. But if you’re willing to invest in yourself, the rewards can be substantial. You’ll grow your skill set, expand your network, and open the door to deals that can truly transform your career.

Start with one small lease. Learn the terms. Talk to business owners. Drive around town. And most importantly—don’t be afraid to ask for help.

About the Author

Hi, I’m Kirk Atamian, a commercial real estate agent who in 2024 had the second rank small commercial team in the nation and 5th worldwide for RE/MAX. I’ve worked with business owners, investors, and new agents trying to break into the commercial world. If you have questions, need guidance, or just want to chat about the industry, I’m here for you. Let’s build your commercial career—together.

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