Blueprints and Bold Moves: Preparing Yourself for a Career in Commercial Real Estate Development

By Sharon Wagner

It starts in the quiet corners of your curiosity—somewhere between reading about skyline-transforming projects and wondering how city blocks evolve from sketches to structures. If you've found yourself circling commercial real estate development as a career, you already know it's not just about buildings. It’s about playing a long game where vision, risk, money, and patience intersect. But before you pull out your drafting board and dive headfirst into the world of mixed-use dreams and retail anchors, there are a few things worth knowing that rarely make it into the glossy brochures.

Understand the Long Arc of the Game

Commercial real estate development isn’t for the chronically impatient. Projects take years—sometimes decades—to move from concept to completion. You're dealing with zoning boards, permitting processes, financing negotiations, architectural design, tenant acquisition, and construction schedules that will test your endurance. Learning how to zoom out and think in terms of timelines that stretch over years instead of weeks is a crucial mindset shift if you want to stick around in this business.

Follow the Money, Always

If you're not curious about capital stacks, debt terms, and investor return thresholds, you’re going to have a hard time here. Money isn’t just fuel—it’s the skeleton of every project. You need to get comfortable reading pro formas, understanding cap rates, navigating financing layers, and talking to lenders or equity partners like you’re fluent in their language. This isn’t something they teach well in textbooks, so the sooner you start shadowing people who do the math behind the curtain, the more fluent—and valuable—you’ll become.

Sharpen Your Edge With Strategic Education

Going back to school can give you the kind of strategic lens that separates developers who hustle from those who actually lead. Whether you're sitting in a finance lecture or dissecting a case study on urban revitalization, a business degree builds out the mental models you’ll lean on for years. Whether you earn a degree in accounting, business, communications, or management, you can learn skills that can help you thrive. With online programs, it's more realistic than ever to gain knowledge in business innovation without stepping away from your career momentum.

Don’t Just Network

You’ve probably heard “networking is everything” more times than you can count, but in commercial real estate, what matters just as much is how you network. Developers, brokers, financiers—they’re inundated with LinkedIn messages and coffee invites. What stands out is someone who shows up with something to offer, even early on. Maybe it’s market research you compiled, or intel on a new zoning change, or just being reliable in ways that make their lives easier. Being useful builds trust, and trust gets you into rooms where deals are born.

Pay Attention to Dirt

Land. Parcels. The overlooked lot behind the strip mall or the weird wedge next to the freeway. If you’re serious about developing, you need to cultivate a deep respect for land—its quirks, its value, and its possibilities. That means knowing how to read a site plan, understanding environmental issues, and being able to walk a property and see what it could be, not just what it is. A sharp eye for potential is often the difference between a forgettable project and one that transforms a neighborhood.

Gain Knowledge about Regulations

Every developer has a war story about bureaucracy. Zoning meetings that drag for hours, city council rejections, or neighbors armed with “Not In My Backyard” signs. But instead of treating regulation as a hurdle, you need to treat it like the arena you're going to play in for your entire career. That means getting comfortable reading municipal code, understanding public engagement strategy, and learning how to work with—not against—urban planners and local officials. If you know how to navigate this world, you're already ahead.

Work for Someone Who's Building What You Want to Build

There’s real power in being a fly on the wall. Before you break off and launch your own ventures, spend a few years inside a development firm that aligns with your long-term vision. If you're drawn to urban infill projects, don't go work for a suburban strip mall developer. If you want to transform former industrial zones into creative campuses, find the team that's already doing that. These years aren't just about skill acquisition—they're about absorbing instinct, taste, and the unspoken rhythms of deal-making.

Be Ready to Learn From Failure (And a Lot of It)

No one tells you this upfront, but you will lose deals. Some projects won’t pencil. Others will fall apart in due diligence, or collapse under unexpected construction costs, or get torpedoed by market changes. If you take it personally, it’ll crush you. If you see each failure as a tuition payment toward long-term wisdom, it’ll sharpen you. The best developers I’ve met are part visionary, part bruised optimist—they’ve lost, but they’ve learned how to lose well.

This career path isn’t just about raising square footage out of the ground. It’s about solving problems, balancing ego with humility, and creating spaces that actually serve a purpose beyond profit. Yes, you’ll need to learn the formulas and the regulations, but you’ll also need a deep well of curiosity, grit, and emotional intelligence. Commercial real estate development is both a business and a belief system—it asks you to imagine what’s possible and then drag that vision, piece by piece, into the real world. If that sounds like the kind of hard you’re hungry for, then start laying your foundation.

Dive deeper into the world of real estate with The Real Estate Think Tank and explore insightful podcasts, market reports, and expert analyses to stay ahead in the ever-evolving market!

Should Fannie and Freddie Leave Conservatorship?

Recently much has been written about the fate of the Federal Housing Finance Agency (FHFA) and its role as conservator over Fannie Mae and Freddie Mac. Since 2009 the FHFA has been both Fannie and Freddie’s regulator and has overseen the direction of both organizations. During that time, the FHFA has ensured that the primary function of both Fannie and Freddie is not profit maximation, but instead facilitation of the secondary mortgage market. The FHFA has set portfolio retention limits, set volume caps for lenders and determined guarantee fees, among other things. Under the oversight of the FHFA, both government-sponsored entities (GSE’s) repaid their debts and once again became profitable. Additionally, both organizations have lowered their respective risk portfolios. In light of a 2021 Supreme Court decision in Collins v. Yellen and the advent of a second Trump presidency, there is some renewed rhetoric around the two GSE’s leaving conservatorship and the oversight of the FHFA.

The Party City Liquidation: Lessons from the Retail Market

2024 ended with surprising news—Party City filed for bankruptcy for the second time in under 2 years. This time, however, it was liquidating. On December 21, 2024, Party City filed for Chapter 11 bankruptcy, looking to liquidate its assets. This happened after the company sent home all of its employees nationwide on December 10, 2024 and closed its corporate headquarters in New Jersey to everyone but executives on December 11, 2024. The resultant liquidation plan seeks to close all Party City locations by this February.

Onto 2025, What Have We Learned?

2025 is in full swing and despite a busy holiday season and our chief editor undergoing a very bad case of the flu, The Real Estate Think Tank continues in full swing as it embraces the beginning of the New Year. With all that said, 2024 has been another year of improvement and growth here at TRET and this time of the year causes us to reflect on some of its highlights.

TRET the Podcast: Market Report 12/19/24

30 Days of TRET content continues with our first ever standalone market report.

TRET Market Report 12/19/24

How Much Knowledge and Skills Do You Need to Prosper In Real Estate

Real Estate is often maligned for having a high barrier to entry. This complaint typically refers to the relatively larger amount of capital that it takes to traditionally purchase a property when compared to other types of investments. It is undeniable that a fifteen to twenty-five percent downpayment can be a substantial amount of money. Especially when the median house price in the United State of America is $386,000, according to Redfin.com. Even considering the 3.5% downpayment requirement of an FHA mortgage, which cannot be used to purchase investment property, it is clearly much more costly to purchase a residential property than it is to purchase stock, bonds, or some other form of investment. The numbers are even greater for commercial property.

Why Can't Anyone Afford A House?

Another Summer has given way to the crisp winds of Autumn. As the cooler temperatures and falling leaves begin to turn ones mind toward the importance of having a warm place to stay in the upcoming months, it would be prudent to look at how housing affordability has become a true concern for most people in the United States. In a very informative, yet eye-opening article, EconoFact discusses how the vast majority of household are spending well over 30% of the their income on housing. This figure includes both homeowners and renters.

The recently decline in housing unaffordability is concerning for a number of reasons. One of the primary concerns around this current economic trend is the financial stress that higher housing costs place on households. Considering further the inflationary pressures of the past five years and it appears that most American households may be squeezed into an impossible position.

What Will Each of the Candidates Do For the Real Estate Market If They Are Elected President?

The 2024 presidential election is coming up in four months and on July 21, 2024, President Joe Biden formally announced that he was withdrawing from the presidential race. This left the Democratic party with a decision which was ultimately made July 30^th, when they name Vice President Kamala Harris as their endorsed candidate for president. With both candidates for president unequivocally named, let’s look at what both Donald Trump and Kamala Harris might do to or for the real estate market if elected as president.

The Origin of the 6% Commission Standard

The recent National Association of Realtors (NAR) Settlement is in the process of changing how many real estate brokers and salespeople conduct business. The terms of the settlement all but abolish cooperative compensation amongst brokers. Although this may not be a substantial change for markets in which every buyer offers through a Buyer's Broker and every seller is automatically represented by a Seller’s Broker, the effects will be greatly felt in other markets. Some of the larger real estate markets have developed complex systems of agency that will now be simplified by one premise--in a residential real estate transaction, a buyer will now have to pay a Buyer’s Broker and seller will have to pay a Seller’s Broker.

Shrinkflation In the Real Estate Market

Inflation has been a reality for the past couple of years. As a result, many companies have decided to respond to the rise in prices and the weakening of the dollar by shrinking the size of their products without reducing their price. This practice has been given the name “Shrinkflation,” which is  defined as “the practice of reducing a product's amount or volume per unit while continuing to offer it at the same price.” Shrinkflation started to become apparent during the pandemic, but was so craftily employed that many doubted that it was even happening. Now, however, it is well acknowledged that just about everything is smaller, but more expensive. Shrinkflation has so integrated itself in today's reality that it has made its way into the real estate market.

The Mortgage Solution and the Refinance Trap: Why the Lender Always Wins with a Mortgage

Mortgage rates have been news for some time now. Coverage about mortgages has recently turned toward news of a potential rate decrease. This potential drop is such a relief to everyone in the real estate market that even President Joe Biden mentioned it in his most recent State of the Union address. Although the reference was a political move and this blog is not political, the President's attempts to use the activity in the real estate market to further his agenda is yet another reminder of the influence that mortgage rates hold on this country.

2023 Recap (No Clever Title This Time)

Yet another year has come and gone for TRET and it’s time for our annual wrap up. Let’s start with this blog. This year started for us with a focus on individual wealth generation through real estate. This noble goal dominated the blog for the first couple of months of the year and was continued in an expert fashion by this year’s guest writer—Sharon Wagner. All of our residential real estate articles have had a wealth generation theme and we will continue to honor this commitment to wealth generation going forward.

There’s No Place Like Home For the Holidays: A Look At The Multifamily Market

Thanksgiving has passed and the holiday season has officially begun, so it is only natural that TRET finishes its real estate asset class series with a look at home—multifamily properties. Also, for those who consider the holidays a time to get away, we’ll also take a look at the state of hospitality properties, as well.

Industrial Real Estate: A Normal Market for a Somewhat Normal Time

Recently coming off the effects of nearly two years of rising interest rates by the Federal Reserve, the real estate market has been in a state of constant change for the past 18 months. As this blog has extensively discussed, real estate is very dependent on interest rates, as they influence property loans, cap rates and ultimately, property prices. Despite the recent period of adjustment, the economy seem to show signs of normalization, with mortgage rates, consumer loan rates and even treasury rates settling at levels much higher than those of the previous two years. By all indicators, it seems like our economy and we seem headed for a soft landing. No market has internalized the current state of the economy more than the Industrial Real Estate market.

Unlocking Retirement Wealth: A Senior’s Blueprint to House Flipping Success

By Sharon Wagner

Please enjoy this article from guest author, Sharon Wagner. TRET will return next month with another article continuing its series on property types.

Navigating the world of house flipping can be an exciting and profitable journey for seniors who are seeking an active and rewarding retirement. While the venture promises lucrative gains, it also calls for strategic planning, unwavering dedication, and tactical execution.

The following are indispensable guidelines aimed at assisting mature adults in carving out a successful career in the house-flipping arena, while also enjoying a balanced lifestyle. The Real Estate Think Tank explores these crucial facets in detail.

Is the American Office Market Dead?

There was a time in the not too distant past when I considered office properties “the best of all worlds.” They offered the flexibility to create leases that were in between the detailed relationships established by industrial and retail properties and the more straight-forward residential lease. Rental calculations were relatively simple—base rent plus utilities and any tenant improvement allowances. Occasionally, common area improvements or maintenance factored into the equation. The property was typically used from 7 am until 7 pm, so utilities were relatively low and predictable. Wear and tear on the property was much less than any other real estate property class.

The necessity of office space was at one point unquestioned and tenants were readily available. Space considerations were for the most part limited to whether the location was large enough and had enough amenities or services to meet the tenants needs. Leases were easy to enter, easy to renew and easy to understand. For owners, office properties offered many of the benefits of owning a commercial property with fewer of the complexities that come with other property types.

The End of Summer

Stephon Martin

August is coming to a close and although Summer isn’t officially over until September 23^rd, the end of August has an unofficial feel of transition. School will soon have begun for all children in the United States and the country will attempt to push forward out of the shadow of COVID-19. Some areas will forge ahead more successfully than others, but an attempt will be made by all. The beginning of September means that the holiday season is just around the corner. With the impending change of the season, how will the real estate market be affected?

Press ‘Home’ — Selling Properties With Smart Tech

 

Please enjoy this article from guest author Suzie Wilson  of  Happierhome.net

There are many advantages to home automation: ease of use, better accessibility, and let’s face it — there’s something cool about a fireplace that starts up when you clap. What you may not have foreseen, however, are the benefits that technology provides when selling a property.

The Role of Tech

 In almost all areas of life, it’s clear that the pandemic has increased our reliance on tech. This is no less true in the housing market, where the need to actually step inside a property has been somewhat reduced by the use of 3D walkthroughs, video-chat tours, virtual open houses, and Zoom realtor consultations. This is good news for prospective sellers as, in the wake of COVID, housing sales have bounced back to levels unseen since pre-2008. If you are looking to sell your property, physical limitations need not slow you down.

Foreclosures and the Moratorium

Stephon Martin

The Biden administration has extended the COVID-19 moratorium on foreclosures to July 31, 2021. Totally avoiding the policy and ideological discussions that could be had about such a decision, one thing is apparent—the additional month extension will increase the backlog of foreclosure and eviction cases that courts around the country will face once this moratorium has ended. Absent any legislative changes, the implementation of creative government programs mitigating distressed loans or both, foreclosure filings, executed foreclosure judgments and foreclosure-related evictions are all set to see an uptick over the next year.

An increase in residential foreclosures and evictions is certainly bad news for affected homeowners and tenants, who will have to find new living arrangements, undergo costly moves in short timeframes, uproot their lifestyles and, in some instances, face long term financial effects. Increasing foreclosures will also serve as a market correction in the real estate market, which is currently driven by inventory scarcity. Amidst the market change and its social implications, many real estate investors can be left wondering which strategy to employ. The answer is simple—any or all of them.

The End of 2020: Now What?

2020 has been a life-changing year for everyone, literally everyone. From the global pandemic, to the fluctuating economy, not to mention the seismic shift in the perception of "going to work," it is safe to say that the world is different place than it was 12 months ago. Now what?

Every year Bloomberg Business Week puts out its "Bloomberg 50"--a list of 50 individuals that have made their mark during the prior year. Although this year's list contains a number of impressive men and women who were able to quickly mobilize and make moving, positive contributions during this tumultuous year, it is notable that not one member of this list was mentioned for contributions to the real estate market. In fact, there are many executives on the list that are touted for reducing the size and/or the footprint of their companies, which in many instances includes real estate divestment. Furthermore, Blackrock, a private equity that is well know for its real estate investments, has made the list, not for real estate, but for its renegotiation of national debts in South America.