Training for new commercial real estate professionals

Every commercial real estate brokerage firm claims to have great training, but few really do. Our research indicates that the quality of the training programs in the industry varies significantly. Thus, those seeking to enter the highly competitive commercial real estate field should do some research and assess the real training capabilities of their prospective employer to increase their chances of success.

The most prevalent training methods today consist of spending time as a researcher or marketing assistant, or as a "runner" for a more experienced broker. In some cases, an office manager may assemble new employees together for informal "training" sessions once a month. Most often, the new employee learns the business through "osmosis," by absorbing facts as they go. This approach is inherently inefficient, has the potential for serious learning deficiencies, and does not follow a structure that guarantees the trainee will have the chance to develop a solid foundation in the basics of the business.

Considering that the turnover rate among those new to the business tends to be particularly high during their first three years, it is understandable that some employers are reluctant to invest dollars in training new agents. However, this may be a shortsighted approach since quality basic training:

1. Does not have to be expensive
2. Can weed out those not committed to the business
3. Shortens the learning curve and accelerates the time to market
4. Is an effective retention tool
5. Delivers value to the employee and creates loyalty
6. Helps manage risk and reduces liability
7. Generates more revenues sooner

The characteristics of organizations committed to providing quality training and employee education include:

1. A real commitment from the firm's leadership, including the CEO
2. A training staff that includes professional educators
3. Training that is offered and available at all levels of the company
4. A curriculum or learning path for employees to follow
5. Education delivered using a variety of learning platforms
6. Recognition and rewards for those who learn

Some commercial brokerage firms have embraced education and training as a way to win the recruitment and retention battles, even among more experienced brokers; there is evidence that their investment in initial and ongoing training is paying off handsomely. Others are not as committed, and have training departments that may be lacking in quality offerings and delivery platforms.

New college grads and other sales professionals seeking a job in the commercial real estate industry should do a thorough job of researching how good their prospective employers' training program really is. When considering potential employers, they should ask about training, review the firm's training curriculum, find out how soon and how often they will receive formal training and what form it will take.

Is training offered in textbooks and/or manuals? Are formal live courses provided? Does the training offer webinars and online education? Is it using the full array of available platforms to appropriately deliver training in both the cognitive content (technical and factual knowledge) and the "soft" content (prospecting, presentation skills, negotiating techniques, etc.) necessary for new brokers to succeed?

The prospective commercial real estate professional should interview a couple of newer employees at the firm to find out how their training has gone so far.

Employees should place a very high priority on the quality of training offered by their prospective employer; their success in the business may very well depend on it.


Eduardo E. Alegre has been actively involved in the commercial real estate industry since 1982, when he started his career with Coldwell Banker Commercial. In 1995, he was appointed Managing Director of CB Richard Ellis' Miami office. In his role as Managing Director, he developed training courses for new salespeople, experienced professionals and support employees.
In 1999, he created the South Florida Corporate Services team, implementing and delivering a wide range of services, including Consultation, Strategic Planning, Merger & Acquisitions Strategies, and Transaction Management, to corporate clients, in addition to traditional brokerage services.
Mr. Alegre is a UCLA graduate, a licensed California real estate broker, a licensed Florida broker. He is a former member of the Appraisal Institute and received his MAI designation in 1990. In 2005, Ed partnered with Mike Miller and together they created the PCE Tool Kit. Ed Alegre and Mike Miller started the PCE Tool Kit project out of sheer frustration
when trying to find quality materials to train associates new to the real estate leasing business. As it became obvious that no such resources existed, they were encouraged by many people to create something new and truly useful. PCE's Commercial Real Estate Leasing Tool Kit is the result of years of experience and industry insights.
Learn more about commercial real estate leasing at www.pceguides.com.