Choose The Right Platform To Expand Your Real Estate Brokerage Business

If you want to expand your commercial real estate brokerage business, one of the first questions to consider is whether you are working on the right platform. During my 25-plus career in real estate, I’ve had the benefit of working with a small privately held company that was focused on one market specializing in investment sales. I’ve also gone all the way to the other end of the spectrum by working with a global full-service company that has an expanded offering including office leasing, project management, and appraisals. 

As you think about expanding, you’ll want to consider what type of business you’re doing and where you want your business to grow. It’s also very important to put yourself in your client’s shoes and look for how you can help. The best business is the business you’re already doing with loyal clients. There may be work that you’re not able to service for them, such as a client who is operating at a national level and you’re only helping them in one market. You might ultimately lose them if you’re unable to service them. A great referral network is one way to address that and there are independent broker networks across the. That said, if you have a client who is doing a lot of business across the country, and you want to be personally involved, that might be one reason to think about a larger platform.

Follow these guidelines as you decide which platform is best for expanding your brokerage business.

Consider Small to Mid-Size Platforms

If you’re at a boutique firm, it can offer several advantages. Some clients prefer working with a smaller company that has specialized knowledge, local relationships, and a focused approach. You may also receive a more favorable commission split than you would at a larger firm.

A boutique can be an excellent place to begin your brokerage career because you may gain frontline experience sooner. Rather than spending years working exclusively as an analyst or concentrating on one asset class, you might make calls, meet clients, tour properties, and participate in transactions. This can give you the chance to be more of a generalist and depending on the market, sometimes that can be a good thing. In other markets, however, you may need to specialize.

Look at Large Platforms

Global full-service firms typically offer more infrastructure and resources. You could have additional support to help you pitch for business, along with marketing and promoting the deal once you’ve completed the sale. You’ll also have access to other services including public relations, legal support, appraisal, project management, and multiple leasing and investment sales disciplines. 

You may find yourself looking for a larger firm after you’ve had several years of experience at a smaller place. At my company we often hire brokers who have been working at a smaller shop for two to three years, as they’ve had a chance to get frontline experience and been exposed to various roles.

Evaluate Starting Your Own Firm

A third option is launching your own brokerage company. Ownership gives you the opportunity to serve clients, bring on partners and associates, and also create enterprises value. However, starting a brokerage requires you to evaluate your time. You may find you’re not able to spend as much time with clients as you focus on servicing the business. You may be responsible for accounting, compliance, recruiting, technology, marketing, and public relations.

A strong business partner can help address this challenge. If you prefer to source opportunities and maintain relationships, you might work with someone who is skilled at operations. If you prefer building systems and managing people, you may need a partner who can continue driving revenue.

Every brokerage platform involves tradeoffs. The key is to choose the environment that aligns your long-term goals with the needs of your clients. This is the first of a two-part series on expanding your brokerage business. The next article will cover where to focus your time once you’ve chosen a platform.