We sat down with Bob Knakal to talk about the feasibility of opening your own brokerage
The short answer is yes. The longer answer is that it may actually be one of the best times to enter the industry—if you’re willing to specialize, compete, and outwork the competition.
Recently, I sat down with one of the most accomplished investment sales brokers in the country, Bob Knakal. Over the course of his career, he has closed more than 2,300 properties totaling roughly $22 billion in transaction value. He began his career in 1984, launched his own firm in 1988, grew it to more than 250 people, and eventually sold it to Cushman & Wakefield in 2014. After that, he went on to lead investment sales at JLL.
Then in 2024, he decided to start over again and launch a new boutique brokerage.
That decision alone says a lot. When someone with that kind of résumé is willing to launch a new company in a challenging market environment, it raises an interesting question. If a veteran operator believes opportunity still exists, what does that say about the future of the industry?
The Myth of Waiting for the “Right” Market
A common mistake people make when thinking about entering commercial real estate is waiting for the perfect market conditions. Many assume they should start when transaction activity is booming and deals are easy to close.
According to Knakal, that mindset is backwards.
In his view, almost any time can be a great time to start a brokerage. During slower markets, there are often fewer deals in motion and fewer brokers actively competing for them. Many professionals leave the industry during downturns, which means less competition and more room for those willing to put in the work. At the same time, talent becomes available and new firms can build teams without the same hiring pressure that exists during strong markets.
Down cycles also force discipline. When markets are booming, momentum can mask weak business practices. In slower environments, brokers have to operate lean, stay focused, and build real skills. That hunger often produces stronger companies in the long run.
Why Specialization Beats Generalization
One of the most important lessons from Knakal’s career is the power of specialization. When he launched his original firm in New York, he and his partner made a deliberate choice not to try to sell every type of property. Instead, they focused intensely on specific neighborhoods and building types.
They studied their markets block by block, transaction by transaction.
That focus created a powerful advantage. In commercial brokerage, your two most valuable assets are knowledge and time. You cannot create more time, but you can use it more effectively.
If a broker spends the year closing a mix of retail, office, and apartment deals, their experience becomes fragmented. Every transaction requires a different set of comparables, buyer pools, and underwriting assumptions.
But if a broker focuses on one product type, every deal reinforces the next one. Each transaction deepens market knowledge and strengthens credibility with clients. Instead of being perceived as just another broker, you become the recognized expert in that niche.
Over time, that positioning compounds.
How Small Firms Compete with Industry Giants
When Knakal built his first company, it was a small local firm competing against some of the largest national brokerages in the country. On paper, those firms had every advantage—larger teams, more resources, and global brands.
Yet the results told a different story.
Between 2001 and 2014, according to CoStar tracking, the second-largest firm in New York sold roughly 1,300 buildings. Knakal’s firm sold more than 4,000 during the same period.
Their advantage wasn’t size. It was clarity.
Their value proposition was simple and easy for clients to understand. They focused exclusively on selling buildings, represented only sellers, worked strictly with exclusive listings, and specialized in specific neighborhoods. The message was direct, memorable, and easy to communicate.
Many firms today struggle to clearly explain what they do in a few sentences. In brokerage, clarity is a competitive advantage.
The Traits That Separate Elite Brokers
Another insight from Knakal’s experience comes from how he recruited brokers. While technical knowledge can be taught, he focused on identifying certain personal traits that tend to predict long-term success.
Competitive drive was one of the biggest indicators. Commercial real estate is fundamentally a competitive business. Brokers who thrive tend to enjoy the challenge of winning deals and outperforming others in the market.
Likability also plays a major role. Transactions involve long relationships, negotiations, and trust between multiple parties. The brokers who succeed are often those clients genuinely enjoy working with.
Finally, discipline is essential. Real estate brokerage rewards consistency. The professionals who treat prospecting, research, and client outreach as daily habits are the ones who build momentum over time.
Why Training Still Matters
One of the most powerful components of Knakal’s original firm was its internal training program. New brokers weren’t allowed to immediately start calling owners or pitching clients. Instead, they had to go through a rigorous process designed to build real expertise.
That process included walking every street in their assigned territory, studying years of comparable sales data, learning how to underwrite deals, and presenting live pitches to senior brokers who challenged their assumptions.
It was demanding, but it ensured that when brokers finally entered the market, they were prepared.
Today, many firms take the opposite approach and simply throw new agents into the deep end. In the next market cycle, companies that reinvest in structured training and skill development may have a significant advantage.
Technology Is Changing the Business
Another major shift happening in brokerage is the integration of artificial intelligence and data-driven tools. Knakal’s new firm is already implementing AI across several parts of the business, including prospecting, deal execution, and data analysis.
Technology will not replace brokers, but it will change how they operate. Firms that use these tools intelligently will move faster, analyze markets more effectively, and operate with fewer layers of overhead. Those who ignore these changes may find themselves falling behind.
Market Cycles Always Create Opportunity
Real estate has always been cyclical. Over the past several decades, the industry has navigated multiple downturns, from the savings and loan crisis in the early 1990s to the recession in the early 2000s, the financial crisis in 2008, and the interest-rate-driven slowdown that began in 2022.
Each time, people predicted long-term decline. Each time, the market eventually recovered.
Entering the business during a challenging cycle can actually be a powerful advantage. Brokers who learn the business in a difficult environment tend to develop stronger discipline and deeper market understanding. When conditions improve, they are already positioned to capitalize on the opportunity.
Opportunity Comes From Change
Markets are never static. Ownership changes, capital moves, and property types rise or fall in favor.
Some sectors are performing well, while others face structural challenges. Industrial real estate continues to show strength in many markets, retail is gradually recovering in strong corridors, and hotel demand has rebounded in many cities. At the same time, certain office assets and heavily regulated housing markets face more complex challenges.
For brokers, these shifts create opportunity. Every market transition produces new buyers, new sellers, and new strategies.
The Reality for New Brokers
Anyone considering a career in commercial real estate should understand one thing. There is never a perfect time to start.
There is only a decision.
The brokers who succeed in the next cycle will not be the ones waiting for ideal conditions. They will be the ones building relationships, developing expertise, and establishing their reputations today. When the market inevitably turns upward, they will already be positioned.
If you want to learn more about these insights, we also recorded a full conversation with Bob Knakal discussing his career, brokerage strategy, and how new professionals can succeed in the industry.
You can watch the full interview here.
For more insights on launching a brokerage or growing a career in commercial real estate, subscribe to our newsletter or reach out through the contact page. We regularly share ideas designed to help professionals sharpen their skills and grow their businesses.
