Careers in Commercial Real Estate for Women
Table of Contents
A. WHAT IS COMMERCIAL REAL ESTATE?
The term real estate encompasses land (including the air above and the ground below) along with anything permanently affixed to the land, such as buildings and structures (specifically property that is stationary or fixed in a location).
The Commercial Real Estate Industry is an industry made up of thousands of companies producing products and providing financial and property services. It is regarded as its own investment class and a highly regulated industry.
The Commercial Real Estate Industry produces a number of products which include, but are not limited to:
Office towers and business parks;
Single family homes, Townhouses;
A Mix of Businesses Centered on the Use of Land:
Thousands of companies both large and small develop, build, buy, own, rent, lease, manage, and sell properties.
Companies involved in commercial real estate may be local, regional, national, or global.
Real estate is an important asset class for investors.
Several entities,from pension funds, institutions, small partnerships, and individuals, invest billions of dollars every year in real estate.
Source: Ross, S. (2006). The Inside Track to Careers in Real Estate.Urban Land Institute.
B. CAREERS IN THE REAL ESTATE INDUSTRY
1. Appraisal and Consulting
Appraisersare paid to estimate the value of a property. This valuation estimate requires an analysis of the market and the subject property being appraised. Most appraisers work for a variety of clients on a fee-per-assignment basis while others are internal staff appraisers producing value opinions for their employer. Most appraisers specialize in residential property or specific types of commercial property.
Appraisers can receive an industry designation (Accredited Appraiser Canadian Institute (AACI) or Canadian Residential Appraiser (CRA)) from the Appraisal Institute of Canada (AIC, www.aicanada.ca).
2.Brokerage and Leasing
Real estate agents who represent buyers, sellers, owners, or tenants must be licensed by the provinces in which they work. All provinces require a test before issuing a sales license. The more advanced broker's license requires more experience and education as well as an additional license test provided at the provincial level.
The public perception of the real estate industry is often based on images of residential sales agents since this is the most visible and highly advertised segment of the real estate industry. Residential agents represent buyers or sellers in exchange for a fee, which is generally only payable based on the completion of a sale, known as a contingency fee. This productivity-based segment of the industry requires long and uncertain hours, often resulting in the vast majority of sales agents dropping out of the industry because their commissions provide inadequate financial support. Those who succeed can make very attractive incomes. People skills dominate this field and a lack of post-secondary education has not hindered many successful residential agents. The current outlook for residential brokers and agents is positive for those involved in the utilization of the available internet and intranet technology for marketing and efficiently working with buyers and sellers.
The Canadian Real Estate Association manages the national Multiple Listing Service (MLS) which is the online tool used by most residential agents to help them buy and sell homes for their clients (www.realtor.ca).
Commercial brokerage requires both people skills and a much higher level of technical business knowledge. For this reason most successful commercial agents need at least an undergraduate education