The Power of Connections: Networking in Commercial Real Estate
January 2024 | Jesse King
In the dynamic world of commercial real estate, success is often determined not only by what you know but also by who you know. Networking is a fundamental aspect of the industry, offering a multitude of opportunities for professionals to build relationships, exchange knowledge, and create valuable connections. In this blog post, we will explore the importance of networking in commercial real estate and provide insights into how it can drive your CRE career forward.
The Networking Landscape in Commercial Real Estate
Networking is a fundamental practice in the commercial real estate market. According to a survey conducted by Buildout, a leading CRE marketing and deal management platform, 79% of CRE professionals find networking critical to their success. The survey also revealed that 87% of respondents attend industry events or conferences to expand their professional network.
FCPG is a proud to be an affiliate firm of CORFAC, a global network comprised of privately held entrepreneurial commercial real estate firms. Each year they host multiple conferences for the affiliated firms in different markets around the world to connect and discuss best practices and the state of different markets. By attending these conferences, our brokers grow their knowledge and build connections that allow us to better serve our clients, both locally and internationally.
Building Trust and Credibility
In a high-stakes industry like commercial real estate, trust and credibility are paramount. Networking provides a platform to establish and reinforce these crucial elements. According to a report by Duke University’s Fuqua School of Business, strong professional relationships are associated with higher trust levels among industry participants.
When you attend industry events, engage in one-on-one meetings, or participate in real estate associations, you have the opportunity to showcase your expertise and reliability. Your interactions with peers, clients, and partners can lead to the growth of trust, which is vital for successful transactions and collaborations.
Market Knowledge and Insights
In an industry where information is power, networking can provide access to invaluable market knowledge and insights. Building connections with professionals who have their ear to the ground can offer you a competitive edge. According to a study by Globest.com, over 65% of commercial real estate professionals say that networking is how they stay up-to-date on market trends and news.
Whether it’s learning about the latest zoning regulations, understanding market fluctuations, or uncovering off-market opportunities, your network can be a wellspring of information. Staying informed through these relationships can help you make informed decisions, guide your investments, and ultimately succeed in the industry.
Deal Flow and Business Development
A well-established network can significantly impact your deal flow and business development efforts. The National Association of Realtors (NAR) reports that 46% of real estate agents cite referrals as their primary source of new business. These referrals often come from their professional network.
In the commercial real estate world, one successful deal can lead to many more. Your network can refer you to potential clients, investors, or partners, increasing your chances of closing deals. It’s important to note that the strength of your network often determines the size and quality of your deal pipeline.
Access to Capital and Funding
Commercial real estate transactions frequently involve substantial capital. Networking can provide access to potential investors, lenders, and financial resources. According to a report by the Urban Land Institute, 60% of real estate professionals consider networking crucial for accessing capital and funding opportunities.
Investors and financial institutions often prefer working with individuals or teams with a strong network because it signals credibility and trust. In a competitive landscape, the ability to tap into these resources can make the difference between a successful project and a missed opportunity.
Adaptation and Innovation
The commercial real estate industry is not immune to change, and staying innovative and adaptable is crucial. Networking can introduce you to professionals who bring fresh ideas and technologies to the table. According to a survey by Deloitte, 82% of CRE executives believe that networking is essential for adapting to emerging technologies and trends.
By connecting with innovative individuals and companies, you can keep up with the latest proptech solutions, sustainable building practices, and industry trends. This adaptability is not only beneficial for your personal growth but also crucial for your clients and partners who expect you to offer cutting-edge solutions.
Networking Challenges and Strategies
While networking in commercial real estate offers numerous benefits, it’s not without its challenges. Building and maintaining a strong professional network can be time-consuming, and not all connections will lead to immediate opportunities. To overcome these challenges, here are some strategies to consider:
Leverage Technology: Utilize social media platforms like LinkedIn and industry-specific tools to connect with professionals and stay updated on industry news.
Attend Industry Events: Participation in conferences, trade shows, and association meetings provides excellent opportunities for face-to-face networking.
Join Networking Groups: Consider joining real estate networking groups or associations to meet like-minded professionals.
Give as Much as You Receive: Networking should be a two-way street. Offer your expertise and assistance to your network as well.
Follow Up and Stay in Touch: Maintain relationships by regularly following up with your contacts.
Networking is the lifeblood of the commercial real estate industry. It provides access to critical market information, opportunities for trust-building, and connections to capital and resources. In an ever-evolving industry, the ability to adapt and innovate is essential, and your network can be your greatest asset. By actively participating in networking efforts, you can unlock a world of opportunities and propel your career to new heights in the dynamic landscape of commercial real estate.
Our brokers love to network and connect with other CRE professionals, get to know us here!