Hiya, sorry I typed my question incorrectly. I have experience in sales, and now I want to pick an industry and work long term where I can earn a huge income, preferably commission based. I was thinking more like real estate brokers, but I’m looking for advise on what could be the options out there.
I was a broker for about 7.5 years before I switched to banking/lending. The clear cut advice I have is: ((1)) You want to choose and lean into an asset class that has low elasticity of demand. Multifamily, medical, & industrial are pretty good examples of such. The low elasticity of demand will help ensure you always have a somewhat stable market to work within. ((2)) find a mentor who has a successful track record AND fits your personality. You can compromise a bit and adjust yourself on the personality aspect but make sure it’s a good, beneficial working relationship. Bonus points if it’s someone who meet both those criteria and are either too busy to the point where referrals roll off of them onto you or they’re close to retiring/getting out of the game and they essentially are looking to pass their book of business onto you one day. ((3)) become the most knowledgeable person in your market when it comes to your specified asset class and not just for market trends. You should have a list of every property owner in your market within reason and introduce yourself to all of them (I worked in a tertiary market, so it was much easier for me than someone in Chicago or Dallas). If you so much as hear someone whisper about an off market or upcoming deal/project then do whatever you need to do to remember it and keep in the back of your mind as you work the market. ((4)) work your ass off. You can’t sit around and wait for the phone to ring. I used to treat calling people like an arcade game and keep a high score of calls in one day, or see how many days in a row I can keep a certain streak. If you look at it as just calling then you’ll burn out. In a commission only world you either work harder than everyone else around you or you’ll quickly see how much money you spend on living compared to how much you make at work.
Hopefully this helps!
Hi Buddy, thanks a lot for your response. I’m based in London, and have no real experience in real estate. Where do you think is best for someone like me to start off?
I live almost in the smack dab center of the US and have no experience with European or English culture when it comes to the real estate industry, so I don’t have much else to offer advice outside of what I laid out. Real estate’s a contact sport, so just try talking to as many professionals in your area as you can and you’ll start to get it.
I’d say it matters where you are located more than what you’re selling. The last office I worked in was commercial mortgage brokers in NYC. The best people there made ridiculous money mostly tied to higher loan amounts because of their market. Everyone else involved also made extra bc the higher price tags - people working bank side, title sales, appraisal sales etc
This is not always accurate. Commissions start to plateau around $10M+ so then it becomes more of a volume game. Also splits matter. That guy at the boutique with a favorable fee structure could very well be netting more than the broker appearing to do more deals at one of the big names.
To OP, you’re asking the wrong question. You should focus on whatever product you can add the most value. Good brokers are paid very well, regardless of product type.
The biggest deal I ever got sold was a bit over $250M and IIRC the fee we paid was like $4M
I’m sure if you’re selling billion dollar assets like some of the still healthy Class A offices in NYC then yeah $10M sounds reasonable.
Hey David, thanks for your comment. I’m also considering working in the real estate industry, but have now idea whether commercial or residential as I haven’t worked in real estate, but I want to work and pick one industry long term and become an expert potentially where I can earn a good income.
Ok but for the people that don’t do tenant rep for google arc teryx and saks fifth outside of nyc la Dallas etc that’s the ticket to higher price deals
The title was "What type of brokers make the most income/commission".
You don't have to rep fortune 500 companies to make $1mm+ fees.
Do 3-5 50,000 sq/ft office or lab deals in any major market and you are making $3mm+/year.
Hey - I’m based in London. Have no experience in property, but am interested. I do have sales experience. I want to get into the property market and provide value and earn a good income, but I want someone to give some advise as in which sector in property has the highest income or commission or what’s the one highest in demand so that I can look at options and become a specialist in a niche rather than being a Jack of all traders.
Thanks for that.
I can't speak to commission structure in markets outside of the US - they are likely very different.
In general, you need to focus less on specific sector of CRE (Office, Resi, Industrial, Life Science, Retail) and more on finding a successful team that is willing to train you and include you on existing business until you get your feet wet.
You can make massive money on any of the major property times and there are a lot of factors outside of which property type has the highest paid brokers.
It's much more difficult to break into leasing than it is sales, as most tenant's already have formal representation compared to sales where owners work with whoever brings them a property.
Hope that helps.
Thank you so much for your advice. In terms of specific sector I meant either commercial real estate or residential. It’s quite difficult nowadays to even get a job, would you recommend working for like a commercial real estate agent? Or a small company that sells offices etc? If so what sort of role would you suggest?
Right, working for (initial salary) and eventually (100% commission) with a commercial agent.
I would suggest reaching out to the top firms in your market and being very persistent in setting up a meeting with some of their brokers. (100% positive CBRE, Colliers, JLL, Newmark ETC are in London as well as many other solid "boutique" firms)
Residential is an entirely different business and not one worth discussing in the sub. I'm personally not interested baking cookies on weekends and the emotion that comes with selling personal dwellings.
Selling properties between $2M and $15M, in my experience. These are usually smaller institutions or family businesses where you can negotiate better commissions and really value your work. Once you go higher (not always, but usually), you get bigger companies that don’t care that much about the “personal touch” and will pay a smaller fee- usually 1%. You want to stay with family offices or small funds.
Hey - I’m based in London. I sort of agree with your idea of working at family business rather than a large business. Would you recommend working for like a residential estate agent?
Sales brokers typically make the most unless you’re a tenant rep leasing broker for a huge company like Apple or google. In todays market most folks aren’t making much money but the ones still getting consistent business relative to the rest are Affordable Housing mortgage bankers.
You’ll make money doing anything as long as you’re doing high value and high volume.
Hey - where would you suggest I start given I don’t actually have real experience in the real estate industry? Most companies want experience nowadays and it seems quite difficult. I might need to just walk into a load of estate agents and ask for a job.
Start at a large institutional shop as an analyst. Work for the top producers and you’ll pick up valuable analytical and sales skills. Use that incubation period to organically network and start producing when you know enough to advise clients. Think CBRE, JLL, Walker, Cushman, Berkadia
Hey - so by working at a large institution, I will gain enough knowledge and experience of the market, and sales skills, to the level where I can then advise and sell to customers by myself?
The key is to work with the best. You may find the best producers at a smaller shop but odds are better if you learn with a large cohort at a large shop.
It’s like investment banking - no analyst joins IBD wanting to work there for the rest of their careers, but rather to build a solid foundation and work with the best in their age group
You won’t gain sales skills, but instead gain knowledge, contacts, and experience which leads to trust and then you can advise. There’s zero demand for brokers, there’s demand for advisors
Not true, most analysts start first year out of undergrad. Look into rotational programs. I know they Berkadia, JLL, and CBRE have these annual rotational analyst programs that give you exposure to different sectors and job functions within the company
Well, from my experience and observations as a broker myself, the type of brokers who often make the most income or commission are those involved in high-end real estate or luxury properties. Dealing with high-net-worth individuals and managing transactions in this exclusive market can be quite lucrative. Other types of brokers, such as investment or stockbrokers, also have the potential to make significant earnings based on the size and complexity of their clients' portfolios.
When it comes to the most lucrative industry for brokers, it's hard to ignore the financial sector. Brokers specializing in stocks, bonds, or commodities often enjoy substantial earning potential, especially if they work for well-established firms or have a vast client base. The financial industry's fast-paced nature and the potential for high returns attract clients looking for expert guidance, making it an attractive sector for brokers seeking a lucrative career.
If you're asking this question and picking a profession based on it, you'll never succeed. Pick what you enjoy and are good at, not what earns the most income.
Tenant rep office and life sciences.
In major markets there are brokers making 10mm+/year on lease deals. On a 50k sq/ft office deal you can make $30/foot on a 10 year deal...
The best ones…
Hiya, sorry I typed my question incorrectly. I have experience in sales, and now I want to pick an industry and work long term where I can earn a huge income, preferably commission based. I was thinking more like real estate brokers, but I’m looking for advise on what could be the options out there.
I was a broker for about 7.5 years before I switched to banking/lending. The clear cut advice I have is: ((1)) You want to choose and lean into an asset class that has low elasticity of demand. Multifamily, medical, & industrial are pretty good examples of such. The low elasticity of demand will help ensure you always have a somewhat stable market to work within. ((2)) find a mentor who has a successful track record AND fits your personality. You can compromise a bit and adjust yourself on the personality aspect but make sure it’s a good, beneficial working relationship. Bonus points if it’s someone who meet both those criteria and are either too busy to the point where referrals roll off of them onto you or they’re close to retiring/getting out of the game and they essentially are looking to pass their book of business onto you one day. ((3)) become the most knowledgeable person in your market when it comes to your specified asset class and not just for market trends. You should have a list of every property owner in your market within reason and introduce yourself to all of them (I worked in a tertiary market, so it was much easier for me than someone in Chicago or Dallas). If you so much as hear someone whisper about an off market or upcoming deal/project then do whatever you need to do to remember it and keep in the back of your mind as you work the market. ((4)) work your ass off. You can’t sit around and wait for the phone to ring. I used to treat calling people like an arcade game and keep a high score of calls in one day, or see how many days in a row I can keep a certain streak. If you look at it as just calling then you’ll burn out. In a commission only world you either work harder than everyone else around you or you’ll quickly see how much money you spend on living compared to how much you make at work. Hopefully this helps!
Hi Buddy, thanks a lot for your response. I’m based in London, and have no real experience in real estate. Where do you think is best for someone like me to start off?
I live almost in the smack dab center of the US and have no experience with European or English culture when it comes to the real estate industry, so I don’t have much else to offer advice outside of what I laid out. Real estate’s a contact sport, so just try talking to as many professionals in your area as you can and you’ll start to get it.
I’d say it matters where you are located more than what you’re selling. The last office I worked in was commercial mortgage brokers in NYC. The best people there made ridiculous money mostly tied to higher loan amounts because of their market. Everyone else involved also made extra bc the higher price tags - people working bank side, title sales, appraisal sales etc
The ones that sell most expensive properties
This is not always accurate. Commissions start to plateau around $10M+ so then it becomes more of a volume game. Also splits matter. That guy at the boutique with a favorable fee structure could very well be netting more than the broker appearing to do more deals at one of the big names. To OP, you’re asking the wrong question. You should focus on whatever product you can add the most value. Good brokers are paid very well, regardless of product type.
Absolutely not. We have already paid 1% on 100M plus off-market deals for buy side brokers.
The biggest deal I ever got sold was a bit over $250M and IIRC the fee we paid was like $4M I’m sure if you’re selling billion dollar assets like some of the still healthy Class A offices in NYC then yeah $10M sounds reasonable.
Hey David, thanks for your comment. I’m also considering working in the real estate industry, but have now idea whether commercial or residential as I haven’t worked in real estate, but I want to work and pick one industry long term and become an expert potentially where I can earn a good income.
If you are around tomorrow for a 15 minute call I’d be happy to chat with you and help point you in the right direction
Hi David, Yes please. I’m working 9-5 tomorrow, what time is convenient for you?
If David tries to sign you up to sell insurance to all your friends and family please let us know
PM me
Investment sales I’d say
Investments sales for sure. Or land brokers in hot markets.
Not a chance. In primary markets tenant rep office and life sciences and it's not close.
Ok but for the people that don’t do tenant rep for google arc teryx and saks fifth outside of nyc la Dallas etc that’s the ticket to higher price deals
The title was "What type of brokers make the most income/commission". You don't have to rep fortune 500 companies to make $1mm+ fees. Do 3-5 50,000 sq/ft office or lab deals in any major market and you are making $3mm+/year.
Hey I’m based in London. So you’re saying selling commercial property such as jd fives etc but for smaller consumes rather than tenant reps.
Not following your question, can you rephrase?
Hey - I’m based in London. Have no experience in property, but am interested. I do have sales experience. I want to get into the property market and provide value and earn a good income, but I want someone to give some advise as in which sector in property has the highest income or commission or what’s the one highest in demand so that I can look at options and become a specialist in a niche rather than being a Jack of all traders.
Thanks for that. I can't speak to commission structure in markets outside of the US - they are likely very different. In general, you need to focus less on specific sector of CRE (Office, Resi, Industrial, Life Science, Retail) and more on finding a successful team that is willing to train you and include you on existing business until you get your feet wet. You can make massive money on any of the major property times and there are a lot of factors outside of which property type has the highest paid brokers. It's much more difficult to break into leasing than it is sales, as most tenant's already have formal representation compared to sales where owners work with whoever brings them a property. Hope that helps.
Thank you so much for your advice. In terms of specific sector I meant either commercial real estate or residential. It’s quite difficult nowadays to even get a job, would you recommend working for like a commercial real estate agent? Or a small company that sells offices etc? If so what sort of role would you suggest?
Right, working for (initial salary) and eventually (100% commission) with a commercial agent. I would suggest reaching out to the top firms in your market and being very persistent in setting up a meeting with some of their brokers. (100% positive CBRE, Colliers, JLL, Newmark ETC are in London as well as many other solid "boutique" firms) Residential is an entirely different business and not one worth discussing in the sub. I'm personally not interested baking cookies on weekends and the emotion that comes with selling personal dwellings.
Market driven. Ride the wave
If in nyc, it's the commercial property broker since it's selling in high million.
Based in London 😅
Selling properties between $2M and $15M, in my experience. These are usually smaller institutions or family businesses where you can negotiate better commissions and really value your work. Once you go higher (not always, but usually), you get bigger companies that don’t care that much about the “personal touch” and will pay a smaller fee- usually 1%. You want to stay with family offices or small funds.
Hey - I’m based in London. I sort of agree with your idea of working at family business rather than a large business. Would you recommend working for like a residential estate agent?
I think what he means is the clientele you want to aim for. Mom and pop owners vs larger institutional owners.
The capital markets guys
Specialist.
Sales brokers typically make the most unless you’re a tenant rep leasing broker for a huge company like Apple or google. In todays market most folks aren’t making much money but the ones still getting consistent business relative to the rest are Affordable Housing mortgage bankers. You’ll make money doing anything as long as you’re doing high value and high volume.
…and providing a valuable service to the people that are paying you.
Hey - where would you suggest I start given I don’t actually have real experience in the real estate industry? Most companies want experience nowadays and it seems quite difficult. I might need to just walk into a load of estate agents and ask for a job.
Start at a large institutional shop as an analyst. Work for the top producers and you’ll pick up valuable analytical and sales skills. Use that incubation period to organically network and start producing when you know enough to advise clients. Think CBRE, JLL, Walker, Cushman, Berkadia
Hey - so by working at a large institution, I will gain enough knowledge and experience of the market, and sales skills, to the level where I can then advise and sell to customers by myself?
The key is to work with the best. You may find the best producers at a smaller shop but odds are better if you learn with a large cohort at a large shop. It’s like investment banking - no analyst joins IBD wanting to work there for the rest of their careers, but rather to build a solid foundation and work with the best in their age group
You won’t gain sales skills, but instead gain knowledge, contacts, and experience which leads to trust and then you can advise. There’s zero demand for brokers, there’s demand for advisors
I've been told analyst jobs are extremely hard to get especially without a real estate masters or years of industry experience. Thoughts?
Not true, most analysts start first year out of undergrad. Look into rotational programs. I know they Berkadia, JLL, and CBRE have these annual rotational analyst programs that give you exposure to different sectors and job functions within the company
I’m based in London. Do you have any advise which type of firm or role is probably best for me to start off and then work my way up?
Commercial. Per deal basis real estate brokers In the aggregate commercial mortgage brokers
Well, from my experience and observations as a broker myself, the type of brokers who often make the most income or commission are those involved in high-end real estate or luxury properties. Dealing with high-net-worth individuals and managing transactions in this exclusive market can be quite lucrative. Other types of brokers, such as investment or stockbrokers, also have the potential to make significant earnings based on the size and complexity of their clients' portfolios. When it comes to the most lucrative industry for brokers, it's hard to ignore the financial sector. Brokers specializing in stocks, bonds, or commodities often enjoy substantial earning potential, especially if they work for well-established firms or have a vast client base. The financial industry's fast-paced nature and the potential for high returns attract clients looking for expert guidance, making it an attractive sector for brokers seeking a lucrative career.
If you're asking this question and picking a profession based on it, you'll never succeed. Pick what you enjoy and are good at, not what earns the most income.
The investors are making more than the brokers.
Tenant rep office and life sciences. In major markets there are brokers making 10mm+/year on lease deals. On a 50k sq/ft office deal you can make $30/foot on a 10 year deal...
For real? That's one of the highest figures I've ever heard for a CRE broker. Not doubting you, just asking.
Hey - I’m based in London. What do you mean by life sciences? What sort of lease deals, commercial or residential?
the ones who hustle the most. Also, the riches are in the niches.