How To Expand Your Commercial Real Estate Brokerage Business

As you build a commercial real estate brokerage business, there may come a point when you want to expand. You might find there are several different directions you can take. Once you know what to focus on next, it can make it easier to grow your brokerage business. This is the second of a two-part series; read the first article on choosing the right platform for expansion.

In my 25-plus years of experience in the commercial real estate business, I have found that there are essentially three ways to cover brokerage. These include a geography standpoint, an asset class, and a client focus.

Follow these guidelines as you look for ways to grow your business and move to the next level.

Consider Geography Factors

Expanding geographically can be a natural next step to expanding your brokerage business. That said, the practicalities of this option might depend on the markets and properties you cover. If you currently work in a major city, moving into the suburbs may be very different. In other instances, if the market is similar throughout your region, you might be able to expand more easily. Some brokers specialize in several estates or a geographic area, such as the Southeast.

Entering a new market, however, typically requires more than learning which properties are available. You’ll need to understand local zoning regulations in the new places where you expand. You’ll also want to learn about the tax laws specific to a state, along with the market practices and the people involved in planning and approval decisions. Even nearby municipalities may have significantly different approaches to development, land use, and property operations.

Think about Asset Classes

Another option is to expand through an asset-class specialty. If you become highly knowledgeable about multifamily, industrial, retail, office, development sites, or triple-net-lease properties, you may be able to use that expertise in different areas. Some investors purchase the same type of property in multiple cities or states, which gives you an opportunity to follow them while remaining focused on an area you understand well.

Specialization can help set your brokerage business apart from others because clients often want an advisor who understands the details of a particular property type. That knowledge may include valuation methods, leasing structures, operating expenses, buyer expectations, and the market forces that are influencing supply and demand.

Let Your Clients Guide Your Expansion

While geography and asset class provide two options for expansion, your clients should help determine which direction makes the most sense. Ask where they plan to invest next, whether they are considering different property types, and what kind of guidance they need from you.

For example, your clients may be selling properties in your current market and reinvesting the proceeds elsewhere. If several clients are looking in the same region, expanding your coverage could be a natural extension of your existing business. Instead of starting over and trying to develop an entirely new client base, you can continue serving people who already know and trust you.

Bring in People With the Right Expertise

Expansion also requires you to evaluate whether you have enough people to serve clients well. As you enter additional markets or asset classes, you may need to bring in professionals who specialize in those areas.

This is especially important for tour-intensive properties. If you are selling multifamily buildings, for example, someone may need to visit the property frequently, show units, meet prospective buyers, and respond quickly when questions arise. It may not be practical for you to handle every tour personally, particularly if the properties are spread across multiple locations.

Bringing in junior partners, associates, or local specialists can help you provide that coverage. These team members can show properties, gather market information, and manage important details while you maintain the client relationship and oversee the broader strategy. Experienced partners can also add specialized knowledge when you enter an unfamiliar asset class or geographic area.

Expansion can create significant opportunities for your brokerage business, but growth should not come at the expense of service. When you follow your clients, develop meaningful expertise, and build a team capable of covering the work, you can expand in a way that strengthens both your business and your client relationships.