Commercial real estate (CRE) has been a popular area for entrepreneurial individuals and investors. “The benefits of a successful commercial real estate business are extensive. Well-chosen real estate assets can provide predictable cash flow, exceptional returns, tax advantages, asset diversification and the opportunity to utilize other people’s money to build wealth,” says Ben Reinberg, a commercial real estate investor and CEO of Alliance Consolidated Group of Companies. In addition, unlike the volatility with equities, rental income-generating properties will repay rental income and appreciate over time.
While passive income is earned by real property, it also allows investors to earn long-term appreciation and tax benefits through loss deductibility and long-term capital gains through Section 1031 exchanges. Simply put, establishing a successful commercial real estate portfolio accumulates wealth through physical property that provides predictable income and financial flexibility.
In 2025, new policies and market dynamics are shifting the balance in favor of informed CRE professionals. In recent legislative actions, several opportunities have emerged that CRE professionals can take advantage of today. “A recent large tax package included accelerated bonus depreciation provisions, allowing businesses to deduct 100% of certain property and equipment in the first year of the investment,” says Ben Reinberg.
For CRE professionals, this means that eligible real estate investments can result in tax write-offs at a faster rate, increasing after-tax cash flow. Other minor modifications to the policy frame, ranging from improvements to the Low-Income Housing Tax Credit to increased caps on certain state and local tax deductions, are creating narrower opportunities in areas such as affordable housing and markets where tax rates are high.
Given the fundamentals of the industry and policy environment, what does it take to build a winning CRE business in its current context? The below will examine that more closely by discussing five structural pillars for building a long-lasting CRE business.
Deep Market Knowledge and Foresight
Strive to be a market expert. Top-performing CRE specialists possess advanced knowledge regarding their hometown or local marketplace and sector environment by regularly learning such variables as vacancy rates, rent comparables, cap rates, and new development in the target geography. By remaining informed at all times, you will then notice an opportunity with a given neighborhood that is about to appreciate or an industry segment that is at risk before anyone else.
Strong Relationships and Networking
People are at the core of CRE. To grow a CRE business, it is essential to develop a strong community of contacts, including investors, brokers, lenders, contractors, and mentors. “High performers pay attention to relationships and reputations because trust unlocks doors to deals,” says Ben Reinberg. By networking actively with real estate events in your area, getting involved with local real estate associations, and keeping in touch with past clients, you have created a reservoir for referrals and off-market access.
Client-Centric Service and Reputation
When you put clients at the core of your business, success will surely follow. Whether brokerage, advisory, or investing capital on behalf of clients is involved in your CRE firm, the quality of service you provide to clients is an important distinction from the rest of the market. Always listen to what your clients need and remain open and honest while also acting in their best interest. This way, you will build a great reputation that pays dividends.
Embrace Technology and Innovation
Be willing to adapt to the business. Technology is transforming commercial real estate, and establishing a successful CRE business today will include utilizing new technological instruments to work smarter. Today, the leading firms utilize data analytics with AI added in addition to proptech platforms for more competitive insights. Utilizing technology also refers to customer relationship management (CRM) software to manage contacts and leads or using virtual tours to market properties globally, for instance.
Strategic Planning and Financial Discipline
Consider the long game. The growth of CRE is not just about chasing every deal that comes your way, but about a very strategic focus and disciplined financial management. The top CRE entrepreneurs we work with are clear about long-term goals and set about developing a plan of the steps to take in reaching those goals. This might mean that you should be focusing on your niche markets rather than spreading yourself too thin.
Success Doesn’t Happen by Accident
A successful CRE firm turns your work into predictable income, your portfolio’s appreciation, and enjoyment from transforming properties into profit. An individual can succeed in the CRE career by understanding the market intensely, networking relentlessly, serving clients to one’s best ability, leveraging technology, and planning strategically.
The landscape in 2025 and beyond will reward a solid work ethic. Whether you are an investor presenting a portfolio or a broker developing a business and all of the nuances, these keys ensure they all add up to better opportunities for sustainable growth in your CRE business. A successful CRE business can cultivate and create a pathway for generations of wealth, innovation, and positive impact on the communities in which we serve.
