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How to Get Started in Commercial Real Estate as a Young Entrepreneur

  • marketing08413
  • Apr 23
  • 3 min read

Whether you're dreaming of opening your first storefront, leasing your own office space, or investing in income-generating property, commercial real estate (CRE) can be a powerful wealth-building move for young entrepreneurs. But getting started can feel overwhelming—especially when you're new to the game.

This step-by-step guide breaks it down into clear, actionable steps to help you navigate your first lease or property purchase with confidence.


1. Define Your Goal First

Before diving into contracts or scouting properties, get clear on your "why."


  • Are you trying to open a business and need space to operate?

  • Or are you aiming to own property as an investment or long-term income stream?


Your answer will shape your entire approach—from financing options to who you need on your team.


2. Learn the Basics

Before you make any moves, it's important to understand the foundational concepts of commercial real estate. This will set you up for success whether you’re leasing space or looking to buy property.

Take the time to learn key terms and concepts, such as:


  • Cap Rate, Net Operating Income (NOI), Triple Net (NNN) leases

  • Lease structures like Gross, Modified Gross, and NNN

  • Property-related costs such as CAM fees (Common Area Maintenance), property taxes, and zoning laws


To dive deeper, be sure to subscribe to our LinkedIn Newsletter, where we cover a wide range of CRE topics, from investment strategies to market trends and more. Getting familiar with these basic terms will help you make informed decisions down the road.

3. Build Your Financial Game Plan

Every CRE move starts with a solid money plan.


  • If you're leasing: Know your budget, business plan, and square footage needs.

  • If you're buying:


Pro Tip: Many first-timers invest using other people’s money (OPM) through partnerships, private equity, or crowdfunding platforms.


4. Find a Commercial Broker

Think of this person as your real estate GPS. The right broker will guide you through:


  • Finding properties that match your goals

  • Understanding market trends and comps

  • Negotiating lease or purchase terms

  • Avoiding red flags (like bad locations or landlord traps)


Tenant Rep = leasing expert. Buyer’s Broker = purchasing pro. Either way, they’re worth their weight in gold.


5. Start Small & Smart

You don’t need a skyscraper to get started. Begin with manageable options:


  • Leasing? Consider:


1. Shorter-term leases

2. Retail suites

3. Coworking spaces


  • Buying? Look into:


1. Small retail or office condos

2. Mixed-use properties

3. Fractional ownership through crowdfunding sites


6. Protect Yourself

Commercial real estate isn’t just about money—it’s about minimizing risk.


  • Set up an LLC or business entity before signing anything.

  • Hire a commercial real estate attorney to review leases or purchase agreements.

  • Understand your obligations, liabilities, and exit strategies.


7. Network Like Crazy

The CRE world is built on relationships. Surround yourself with people who are doing what you want to do.


  • Join local real estate meetups or chambers of commerce

  • Follow CRE pros and firms on LinkedIn, Instagram, and YouTube

  • Reach out to brokers, developers, or investors—ask to shadow or grab coffee

  • Find a mentor—they’ll help you skip costly mistakes


Getting into commercial leasing or property ownership as a young entrepreneur might feel out of reach—but it’s more accessible than ever if you know where to start. With the right knowledge, strategy, and support system, you can absolutely carve your own path in commercial real estate.




Written by LevRose CRE with assistance from: LevRoseCRE.(2024)

ChatGPT [Open AI]. https://chat.openai.com/

 
 
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