Are you looking for the top commercial real estate designations?
Real estate is an extremely competitive field. There are so many real estate agents out there that any edge an agent can get over the competition might make or break their career.
One of the main ways in which a real estate professional can demonstrate their expertise and show that they’re part of a professional network is by earning a real estate designation. These designations require someone not only to complete course work, but also to remain an active member in their professional community.
There are a large number of designations available, so it’s important to consider what real estate designations are best suited to particular lines of work. For example, agents that work in residential real estate would look at a very different set of designations than commercial real estate agents.
From my experience in the real estate industry, I have come to find that two of the best real estate designations are the CCIM (Certified Commercial Investment Member) and SIOR (Society of Industrial and Office Realtors), both of which are top commercial real estate designations in the field and provide a very high return on investment.
Rainier L. Nanquil, Cushman & Wakefield
But what are these designations specifically? How can you get them? And what are the differences? Is one better than the other?
In this article, I’ll explain the meaning behind both the CCIM and SIOR designations and help you understand which one is right for you.
What is a CCIM Designation?
A CCIM designation, or Certified Commercial Investment Member, is a special designation on a real estate license that signifies they have taken advanced market analysis courses, and that they are considered an expert in commercial real estate and financial analysis, as awarded by the CCIM Institute.
All CCIM classes are taught by top real estate professionals, so they teach only up-to-date information that will be immediately applicable in CCIM’s careers.
CCIM agents are equipped to better serve their clients by:
- Minimizing risk
- Enhancing deal credibility
- Making informed decisions
- Closing more deals
How do you get a CCIM Designation?
A real estate professional must have extensive experience in the commercial real estate industry in order to become a CCIM.
First of all, there is a commercial transaction requirement: an agent must have completed 3 transactions of $30 million or more, 10 transactions of $10 million or more, or 20 transactions of any value.
After one meets the transaction requirement, it takes at least a year to earn the designation. Agents must complete over a dozen courses and take a rigorous membership test before they are finally awarded the designation.
Advantages of Becoming a CCIM
CCIM designated real estate professionals stand out not only for their level of knowledge and expertise in the commercial real estate field, but also for their commitment to continuous education and performing to a high standard.
Because it’s so difficult to become a CCIM, there is a high level of prestige that comes with it. Many high-level commercial clients only work with CCIM designated agents as a result of the high value that is placed on this designation.
Any agent with this designation is sure to stand out from the crowd. It’s especially important to consider becoming a CCIM if an agent works in a highly competitive commercial market.
CCIM agents are also part of a professional community that provides resources, connections, and further education year-round. Any CCIM is thus rewarded not only for their initial coursework, but for their ongoing commitment to the commercial real estate field.
There are a variety of other benefits to becoming a CCIM, as detailed on the CCIM Institute’s website. Other benefits include access to CCIM publications, a property-marketing platform that is exclusive to members, and more.
What is a SIOR Designation?
An SIOR, or Society of Industrial and Office Realtors, designation signifies an agent’s expertise in industrial and office real estate and tells clients that they are recognized by real estate professionals and executives as one of the most capable real estate agents anywhere.
SIOR offers both in-person and distance learning courses, such as Broker Bootcamps, which includes courses on construction, lease agreements, SIOR ethics, and more.
SIOR designations are granted in one of six categories:
- Industrial
- Office
- Dual Industrial & Office
- Sales Management
- Executive Management
- Advisory Services
How do you get a SIOR Designation?
SIOR particularly emphasizes their designee’s ethics, knowledge, and production. As a result, achieving this designation requires a high level of experience in whatever specialty you choose.
For example, one of the prerequisites for an Industrial or Office specialist designation is a minimum production value as measured by an agent’s Gross Fee Income (GFI). The required GFI ranges from $200,000 to $500,000 based on an agent’s local SIOR chapter. The GFI must be comprised of transactions that are primarily based in the requested specialty.
Applicants must also receive endorsements from current SIOR members and complete several courses, including an ethics course. Other courses include sales skills, negotiation tactics, and an introductory course in real estate investment and finance.
Once all requirements are completed, the application may be submitted.
Advantages of Becoming an SIOR
The SIOR designation is also highly prestigious. One of the main benefits of becoming an SIOR is instant recognition from high-level clients. Not only do SIOR’s have a highly exclusive professional community to draw from, but they also have access to continual professional development.
SIOR is especially notable because of its range of specialties. While other designations are much broader in their scope, SIOR allows for specific expertise to stand out.
Since SIOR’s are so visible within their field, they often have excellent access to clients and transactions that would otherwise be unattainable. The prerequisite of maintaining a high level of productivity likewise lets clients know that they can be trusted with important transactions and will make the right decisions. As a result, productivity growth is assured.
Lastly, SIOR designations lend an extremely high degree of credibility to an agent, which can’t be achieved in any other way. The rigorous standards and prestigious history of SIOR thus stand behind every SIOR’s professional decisions.
Which Designation is Better?
Both CCIM and SIOR are highly valued designations that are difficult to achieve. However, they provide equal prestige to their designees and allow them access to an exclusive professional community.
Neither designation is necessarily “better” than another. Rather, they have slightly different focuses that may better suit some agents than others.
While CCIM’s main focus is on market and investment analysis within the commercial real estate industry, SIOR specifically allows for particular real estate professionals to specialize in their field, including managers and advisors as well as brokers.
Both designations’ stringent entry requirements mean that much of their benefits are the same. Chief among these is, of course, the prestige they confer and the access to high-level clients. However, the professional development opportunities both CCIM and SIOR offer should not be discounted.
Although clients are sure to be impressed by simply the designation, it’s vital to see becoming either a CCIM or an SIOR as the beginning of a relationship with that wider community. No matter how prestigious the designation is, someone who doesn’t leverage that designation to their advantage is no better off than they were before.
Conclusion
Overall, both CCIM and SIOR are two of the best real estate designations a person can earn today. The decision about which designation is correct for you should be based on your time in the industry, your prior productivity figures, and your future ability to commit to attending rigorous courses.
Despite their uncompromising entry requirements and their heavy time commitment, real estate designations like CCIM and SIOR offer real estate professionals exclusive access into a community of the best professionals in the industry. Consider your personal circumstances and your experience when deciding which designation best suited to your career. Here is a book that I highly recommend all aspiring CCIM or SIOR candidates to read in order to prepare for a professional real estate designation. Once you master the finance & development aspects, the rest will be such a breeze.
Before you go, check out my review sharing the Best Commercial Real Estate Careers and Salaries