How to Get into Commercial Real Estate in Texas?
Did you know that Texas is home to four of the top ten fastest-growing cities in the U.S., driving an unprecedented demand for commercial real estate? From towering office spaces in Dallas to sprawling industrial warehouses in Houston, the Lone Star State is a goldmine for ambitious real estate professionals. Whether you dream of closing million-dollar deals or building a portfolio of high-value properties, Texas offers endless opportunities to turn your aspirations into reality.
But breaking into commercial real estate isn’t just about ambition—it’s about having the right roadmap. In this guide, we’ll walk you through everything you need to know to launch a successful career in Texas commercial real estate, including:
- Why Texas is a prime market for commercial real estate
- Step-by-step instructions to get your real estate license
- How to build a strong professional network
- Tips for staying updated on market trends
- Career potential and earning expectations
- Key differences between residential and commercial real estate
- Types of commercial properties you can work with in Texas
- Frequently asked questions about starting your career
By the end of this blog, you’ll clearly understand what it takes to succeed in Texas’ thriving commercial real estate market. Let’s dive in!
Why Texas is a Prime Market for Commercial Real Estate
Texas is one of the fastest-growing states in the U.S., with cities like Houston, Dallas, Austin, and San Antonio driving demand for commercial properties. The vast opportunities range from office spaces and retail centers to industrial warehouses and multifamily housing. Whether you’re interested in leasing, sales, or investment, Texas offers a dynamic market to build a lucrative career.
How to Get into Commercial Real Estate in Texas:
You’ll need a real estate license to become a commercial real estate agent in Texas. While Texas doesn’t have a separate license for commercial real estate, the standard real estate license allows you to sell residential and commercial properties.
1. Get Your Real Estate License
Step 1: Complete 180 Hours of Pre-Licensing Education
- Texas requires coursework from an approved provider covering real estate principles, contracts, and ethics.
- Cost: $350 – $1,000+ (varies by provider).
MLS Campus offers state-approved pre-licensing courses that meet Texas requirements, providing you with the knowledge and skills to pass the licensing exam.
Step 2: Submit Your License Application
- Apply through the Texas Real Estate Commission (TREC).
- Application Fee: $185.
Step 3: Get Fingerprinted & Pass a Background Check
- Fee: $38.25.
Step 4: Pass the Texas Real Estate Exam
- Administered by Pearson VUE, the exam covers both national and state-specific content.
- Exam Fee: $43.
Step 5: Find a Sponsoring Broker
- While your license allows you to sell residential and commercial properties, specializing in commercial real estate requires additional knowledge and experience. Consider working with a broker specializing in commercial properties or joining a firm focusing on commercial real estate.
- Potential Costs: Some brokers charge desk fees, commission splits, or monthly fees (varies widely).
Step 6: Activate Your License
- Once your application is approved and you secure a broker, your license becomes active.
Total Estimated Cost to Get Licensed
Expect to spend $600 – $2,500+ depending on education provider, brokerage fees, and additional expenses like exam prep or membership dues.
2. Build Your Network
Networking is crucial in commercial real estate. Attend industry events, join professional organizations like the Texas Association of Realtors (TAR), and connect with other professionals in the field. Building relationships with investors, developers, and other agents can help you secure deals and grow your career.
3. Stay Informed About Market Trends
The commercial real estate market is constantly evolving. Stay up-to-date with market trends, economic factors, and zoning laws changes that could impact Texas commercial properties.
Career Potential: How Much Can You Make in Commercial Real Estate?
Agents in Texas have unlimited earning potential since most income comes from commissions rather than a fixed salary. Here’s what to expect:
- Entry-Level Agents: $50,000 – $80,000 per year
- Mid-Career Agents: Typically earn between $100,000 – $250,000 per year
- Top Agents: Successful agents can earn $250,000+ per year, with some exceeding $500,000 depending on their experience and the volume of transactions
Commission structures vary but typically range from 3% to 6% of the transaction value, split between the listing and buying agents. Since commercial properties often have higher transaction values than residential properties, agents can earn significantly more per deal.
Do Commercial Real Estate Agents Get a Base Salary?
Most commercial real estate agents work on a commission-only basis, meaning their income depends on closing deals. However, some firms may offer new agents a base salary or draw (an advance on future commissions), especially during their initial training period. This is more common in larger firms or brokerages with structured training programs. Keep in mind that as you gain experience and build your client base, your earnings will primarily come from commissions, which can be significantly higher than a fixed salary.
Residential vs. Commercial Real Estate: Key Differences
If you’re deciding between residential and commercial real estate, here’s a comparison to help you choose the right path:
| Feature | Residential Real Estate | Commercial Real Estate |
| Average Earnings | $50,000 – $150,000 | $100,000 – $500,000+ |
| Transaction Complexity | Straightforward | More complex, longer timelines |
| Sales Cycle | Faster (weeks to months) | Longer (months to years) |
| Client Type | Individual buyers/sellers | Businesses, investors, developers |
| Commission Potential | Lower per transaction | Higher per transaction |
| Required Expertise | General property knowledge | Market analysis, leasing, and financial projections |
Key Takeaways:
- Earnings Potential: Residential agents typically earn between $60,000 and $100,000, while commercial agents can make significantly more due to higher transaction values and commission structures.
- Transaction Complexity: Commercial transactions require more expertise, such as financial analysis and leasing strategies, compared to the simpler processes in residential sales.
- Sales Cycle: Residential transactions tend to close faster, whereas commercial deals involve longer negotiations and extended due diligence periods.
- Client Base: Residential agents work with individuals and families, while commercial agents engage with businesses, investors, and corporate clients.
Residential real estate may be right if you prefer working with homeowners and quicker transactions. However, if you’re drawn to higher commissions and large-scale investment deals, commercial real estate offers greater financial potential and long-term opportunities.
What types of commercial properties can I work with in Texas?
In Texas, you can work with a variety of commercial properties, including:
- Office buildings
- Range from single-tenant to multi-tenant skyscrapers.
- Agents assist landlords in leasing space and help businesses find suitable locations.
- Key factors include location, amenities, lease terms, and market demand.
- Retail centers and malls
- Includes shopping centers, malls, and standalone stores.
- Requires understanding consumer behavior and retail trends.
- Agents help retailers find high-traffic locations and assist property owners in leasing space.
- Industrial warehouses and distribution centers
- Comprises warehouses, manufacturing facilities, and distribution centers.
- Increased demand due to the rise of e-commerce.
- Agents must understand zoning regulations and the logistics needs of industrial tenants.
- Multifamily housing (apartment complexes)
- Involves apartment buildings and complexes that generate rental income.
- Agents may manage leases or assist investors in acquiring properties.
- Knowledge of tenant demographics and local rental markets is essential.
- Hotels and hospitality properties
- Encompasses hotels, motels, resorts, and other lodging facilities.
- Agents may facilitate buying/selling or securing financing for developments.
- Understanding tourism trends and occupancy rates is beneficial.
- Land for development
- Raw land for residential, commercial, or agricultural use.
- Requires knowledge of zoning laws, environmental regulations, and development costs.
- Involves collaboration with developers and investors.
Additional Considerations
- Market Trends: Each type of property has its own market dynamics influenced by economic conditions, demographic shifts, and technological advancements.
- Zoning Regulations: Familiarity with local zoning laws is essential as they dictate what types of developments can occur on specific parcels of land.
- Investment Analysis: Understanding financial metrics such as cap rates, cash flow projections, and return on investment (ROI) is critical across all property types.
How do I stay updated on Texas commercial real estate trends?
To stay informed:
- Follow industry publications like Commercial Property Executive or Bisnow.
- Join professional organizations like the Texas Association of Realtors (TAR) or NAIOP (Commercial Real Estate Development Association).
- Attend local real estate events, conferences, and webinars.
- Network with other professionals and brokers in the industry.
What are the best resources for learning about commercial real estate in Texas?
Some great resources include:
- Texas Real Estate Commission (TREC): For licensing and regulatory information.
- Texas Association of Realtors (TAR): For networking and industry updates.
- Commercial Real Estate Development Association (NAIOP): For education and events.
- Local real estate investment groups: For networking and learning from experienced professionals.
FAQs About Getting a Real Estate License in Texas for Commercial Real Estate
- Do I need a college degree to get a real estate license in Texas?
No, you do not need a college degree. However, you must complete 180 hours of pre-licensing education and pass the state licensing exam.
- How long does it take to complete the 180 hours of pre-licensing education?
On average, it can take 3-6 months to become licensed. MLS Campus offers flexible online courses with a six-month access period and a free 30-day extension.
- What topics are covered in the pre-licensing courses?
The curriculum includes Principles of Real Estate, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.
- What are the benefits of specializing in commercial real estate (CRE)?
Higher earning potential, larger transactions, and long-term relationships with businesses and investors.
- Can I work in commercial real estate without a license in Texas?
No, you must have an active real estate license to legally represent clients in commercial real estate transactions.
- Is commercial real estate a good career in Texas?
Yes, Texas offers abundant opportunities in office, retail, industrial, and multifamily properties due to its booming economy and population growth.
- What are the biggest challenges in commercial real estate?
Longer sales cycles, high competition, staying informed about market trends, and building a strong network.
- Can I transition from residential to commercial real estate?
Yes, but you’ll need to gain additional knowledge, build a commercial network, and consider working with a specialized broker.
- Are there specific markets in Texas that are better for commercial real estate?
Houston (energy, healthcare, industrial), Dallas-Fort Worth (corporate offices, retail, logistics), Austin (tech, multifamily), and San Antonio (healthcare, tourism).
- How do I start building a client base in commercial real estate?
Network with local businesses, attend industry events, leverage social media, and partner with experienced agents.
- What is the role of a commercial real estate broker?
Brokers oversee transactions, provide market expertise, and offer training and mentorship to agents.
- Is it better to specialize in a specific type of commercial property?
Specializing can make you an expert in a niche, but starting as a generalist can help you identify your strengths.
Ready to Start Your Real Estate Journey in Texas? Let MLS Campus Guide You!
At MLS Campus, we’re dedicated to helping you succeed in the Texas real estate market. Whether you’re just starting out or looking to grow your career, our easy-to-follow courses and expert guidance will give you the knowledge and confidence you need to thrive.
Why Choose MLS Campus?
- Comprehensive Courses: Gain real estate expertise, from foundational concepts to advanced strategies customized for the Texas market.
- Expert Support: Our team is here to answer your questions and provide the tools you need to succeed.
- Flexible Learning: Study at your own pace, with resources designed to fit your schedule.
Start Your Texas Real Estate Journey with MLS Campus Today!
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