Progression and Stagnation

Commercial real estate has been a fantastic profession for me and my family. However, around 75-80% of new brokers leave in the first year and 50-65% within the first five years. So what makes one broker progress to success and another to stagnate and drift away? Here are a five things I’ve learned about progression and stagnation when it comes to working in commercial real estate.

1.      Building relationships v. chasing transactions. I’ve said many times that CRE is a relationship business. A new broker should not put all of their energy into chasing transactions––that can make you feel stuck in a rut. Yes, you need to get deals done to pay the bills, but it’s critical to prioritize building a network to sustain you long term. It’s invaluable. My first advice to new or mid-career brokers is to find a mentor. Then listen up, watch carefully, and engage intentionally. This is not a business to go it alone. Long-term relationships are golden.

Indie is eager and friendly.

2.     Good habits v. bad habits. Successful brokers get the most out of daily, disciplined habits. We organize our time and use it wisely. Quick follow up on leads is key. Prospecting every day is non-negotiable. Also be aware, that you can never tell where your next lead comes from. Perhaps, it’s from someone you met at the breakfast counter, sat next to at a bar, or your neighbor two doors down. It takes good habits and hustle and drive with a friendly approach to be a successful broker. Successful brokers are relentless.

3.     Proactive v. reactive. Markets cycle through busy and slow times. What you do during those slow times, impacts how things will be six weeks later. If the market is slow, adjust to further increase networking or make cold calls to introduce yourself for future deals. Instead of waiting for the market to change, create value by learning something new, building your network, or partnering in investments and add to property valuations. Bottom line, create opportunities rather than just react to situations. Get ahead of the game.

Snoopers has purpose and likes to keep moving on walks.

4.    Resilience v. complacency. Nowadays, playbooks changing are morphing so fast they easily become outdated. Being successful requires you to constantly sharpen your skills, try new things, and utilize technology thoughtfully. There’s a lot to navigate––volatile markets, competition, rejection, and regulatory changes––so being clear why you do what you do is helpful. Brokers must stay mentally tough, manage stress, and change up strategies when things take a turn. We must have a sense of purpose, adapt accordingly, and keep moving.

5.     Strategic partner v. generalist. When I started in commercial real estate with John Allen, I gained a deep knowledge about the industrial side of commercial real estate. With that foundation and expertise, I was able to gain client trust, establish credibility, and utilize strong negotiation leverage. I became a strategic partner in the industrial lane. Since then, I’ve broadened my approach (through work at ERSI and Commercial Equities Group) by brokering and investing in all categories. Deeply knowing the nuances of one category, sharpened my ability to successfully get deals done in all categories.

Conclusion

Success in commercial real estate is all about playing the long game by prioritizing deep professional relationships and a strong network, over just chasing quick deals. It takes a lot of discipline to maintain daily habits like prospecting and fast follow-ups. Staying proactive, especially during slow market cycles, is what sustains brokers for longevity. Because the industry changes so fast, the most successful brokers are those who stay resilient, constantly learn new skills, and keep a positive, relentless hustle even when things get tough. It’s about having a strong sense of purpose that goes beyond money. For me, it was about proving myself, helping others, and having autonomy. After decades in the field, legacy is a big one too.

Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.

#CEGspaces #CommercialRealEstate #Broker #veteranowned #BNI #AbsoluteConnections #CommercialRealEstateBlog #brokerlife