The Complete Beginner’s Guide to Commercial Real Estate (2025 Edition)
Why 2025 Is the Year to Step Into Commercial Real Estate
If you’ve been watching the real estate market lately, you already know — the game is changing.
Residential transactions are tightening, margins are shrinking, and competition is higher than ever. Meanwhile, the commercial market — from small multifamily buildings to local retail centers — is quietly creating six-figure opportunities for agents who know how to step in.
2025 is a perfect moment to make that move. We’re seeing increased demand for income-producing properties, redevelopment of older spaces, and the continued boom in multifamily housing as affordability challenges push more people toward rentals.
The best part? You don’t need decades of experience or a fancy designation to get started. You just need the right system and a willingness to learn.
👉 Ready to see how to get started?
Watch my free training: 3 Commercial Real Estate Secrets Every Agent Needs to Know.What Is Commercial Real Estate (and Why It’s So Lucrative)?
Commercial real estate (CRE) includes properties that generate income — think apartment buildings, office spaces, retail centers, warehouses, land, and mixed-use developments.
The biggest difference between residential and commercial real estate is scale. In residential, your income is tied to the number of transactions you close. In commercial, one good deal can equal several residential closings — sometimes more.
It’s not uncommon for a single commercial commission to bring in $25,000, $50,000, or even $100,000+.
And because commercial clients are investors, the relationships tend to be professional, repeatable, and data-driven — no emotional rollercoasters, no endless showings.
Why Residential Agents Are Perfectly Positioned for CRE Success
If you’ve built a residential business, you already have the foundation: negotiation skills, client management, and market knowledge.
The main shift you’ll make is mindset. Commercial real estate isn’t about granite countertops and open floor plans — it’s about numbers, returns, and long-term value.
But don’t let that intimidate you. Once you understand the basics, commercial is simpler than you think.
And because so few agents specialize in it, competition is much lower — which means more room for you to grow.
👉 Want to see the exact framework residential agents are using to make the leap?
Watch my free training: 3 Commercial Real Estate Secrets Every Agent Needs to Know.
The 6 Core Property Types You’ll Encounter
Commercial real estate isn’t one-size-fits-all. You can specialize or work across multiple sectors.
Here are the main categories:
Multifamily — apartments, duplexes, fourplexes. These are great entry points for beginners.
Retail — from small storefronts to large shopping centers.
Office — professional buildings, medical spaces, coworking hubs.
Industrial — warehouses, logistics centers, manufacturing facilities.
Land — raw or improved land for future development.
Special Use — hotels, gas stations, schools, religious facilities, etc.
Each type has its own dynamics, but multifamily and small retail are often where most new agents start.
How Commercial Real Estate Is Valued (Cap Rates Made Simple)
If there’s one term that intimidates new agents, it’s “cap rate.” Let’s simplify it.
Cap Rate = Net Operating Income ÷ Property Value.
That’s it.
The cap rate tells you how much return an investor can expect from a property, expressed as a percentage.
Example:
If a 10-unit building earns $120,000 per year after expenses, and it sells for $1.5 million, the cap rate is 8%.
Cap rates vary by location, property type, and market conditions. In general, higher cap rates mean higher potential returns — but also higher risk.
Investors use this number to compare opportunities, and once you learn how to calculate it, you’ll instantly stand out as a knowledgeable agent.
Finding Your First Commercial Client
You don’t need a CCIM (Certified Commercial Investment Member designation) or a special license to start working in commercial real estate.
Start by looking at your existing database. Many of your residential clients already own — or want to own — income-producing properties.
Other ways to find your first CRE client:
Join your local chamber of commerce or networking group.
Connect with small business owners and landlords in your community.
Partner with a seasoned commercial agent for your first few deals.
Once you have the right conversation framework, property owners will take you seriously — even if it’s your first commercial call.
Common Myths About Breaking Into Commercial Real Estate
Let’s clear up a few misconceptions:
🚫 Myth #1: You need a CCIM to start.
Nope. It’s a great credential down the road, but not a requirement to do deals.🚫 Myth #2: You need deep pockets or investor money.
Not true. You’re representing buyers and sellers, not buying properties yourself.🚫 Myth #3: Commercial deals take forever.
With the right process, deals can move quickly — especially small multifamily or owner-user sales.🚫 Myth #4: It’s too complicated.
Once you understand the math and the flow of a deal, it’s straightforward — and often less emotional than residential.The Commercial Real Estate Process — Step by Step
Here’s what a typical commercial deal looks like:
Prospect and Qualify: Identify property owners or investors who are active or motivated.
Run the Numbers: Calculate income, expenses, and cap rates.
Package the Opportunity: Prepare a professional financial summary or offering memorandum.
Market and Negotiate: Use your network and marketing platforms to reach qualified buyers.
Close the Deal: Work with attorneys, lenders, and escrow to finalize the transaction.
Follow Up: Stay connected for repeat and referral business.
That’s the same 6-step process I teach inside the 6-Figure Commercial Playbook — because once you can repeat it, you can scale your income fast.
Mistakes New Agents Make (and How to Avoid Them)
Most beginners stumble because they:
Try to “wing it” without a system.
Get lost in the numbers and analysis.
Avoid picking up the phone.
Work alone instead of leveraging mentors or partnerships.
These mistakes are easy to fix — with the right guidance and structure. That’s why I created the 6-Figure Commercial Playbook: to help you start smart, stay confident, and close faster.
The Future of Commercial Real Estate (2025–2030)
The next five years will bring massive opportunities in commercial:
Multifamily demand will continue to surge as housing affordability stays tight.
Adaptive reuse (turning old retail and office into housing or mixed-use) will keep growing.
Industrial and logistics will thrive as e-commerce expands.
Green and tech-enabled properties will command premium rents and values.
Agents who learn CRE now will have a huge advantage as the market evolves.
How to Start Your Commercial Journey Today
If you take one thing from this guide, let it be this: you’re closer than you think.
You don’t need a CCIM.
You don’t need years of experience.
You don’t even need commercial clients yet.You just need the right roadmap — and the willingness to start.
That’s what I share in my free masterclass:
👉 3 Commercial Real Estate Secrets Every Agent Needs to KnowInside, I’ll walk you through the exact steps agents are using to land their first commercial deals and earn their first $100K in commissions.
And when you’re ready to take the next step, the 6-Figure Commercial Playbook will guide you every step of the way — from finding your first client to closing your first deal.
The opportunity is here. The timing is perfect. All that’s left is for you to take action.
Next Steps: Learn How to Break Into Multi-Family the Smart WayIf this opened your eyes to what’s possible in commercial real estate, don’t let the momentum fade.
🎯 Step 1: Watch my free masterclass — 3 Commercial Real Estate Secrets Every Agent Needs to Know.
🎯 Step 2: Explore the 6-Figure Commercial Playbook to master the 6-step deal process.
🎯 Step 3: Join the 3-Day Intermediate Training to practice live with other agents and investors.🎯 Step 4: downlod the 90-Day Commercial Agent Launch Checklist
You’re closer than you think to your first commercial deal — and your next level of income.
To your success,
Michael Simpson
Founder, NCREA
