Why SIOR Matters

Understanding the Value of SIOR in Commercial Real Estate

Have you ever wondered what the letters at the end of people’s names on LinkedIn mean? These designations, while sometimes confusing, often represent professional affiliations and certifications that speak to a person’s expertise and commitment to their field. One of the most respected in commercial real estate is SIOR which stands for the Society of Industrial and Office Realtors.

Organizations like SIOR play a crucial role in maintaining a high standard of excellence within the real estate community, both locally and even around the world. Here's a closer look at why SIOR matters and how it ensures accountability and professionalism.

The Five Qualifications for SIOR Membership‍

Becoming a member of SIOR is no small feat. Applicants must meet five main qualifications to be considered for membership:

1. Time in the Business: Applicants must have at least five years of full-time experience as a commercial real estate agent specializing in either office or industrial properties.
2. Performance and Production: Candidates must demonstrate consistent performance by meeting a minimum level of gross commission income over a three-out-of-four-year period, proving each candidate’s ability to close deals and deliver results.
3. Endorsements: Applicants need endorsements from two current SIOR members from their chapter, outside their own firm, who can vouch for their professionalism and integrity.
4. Education: Candidates are required to complete educational courses provided by SIOR, covering essential topics such as lease analysis, purchase and sale agreements, negotiation strategies, and ethical business practices.
5. Ethical Standards: Perhaps the most critical requirement is adherence to the SIOR Code of Ethical Principles. Members must demonstrate a commitment to ethical conduct in all their professional dealings.

Why Accountability Matters for Commercial Real Estate Brokers 

‍In commercial real estate, brokers often don’t need additional motivation to earn more money; what they truly need is greater accountability and ethical oversight. Unfortunately, traditional methods for reporting unethical behavior through real estate boards can be tedious and discouraging, often deterring those who observe this behavior from taking action. SIOR addresses this challenge by setting a higher standard for ethical conduct. Members not only hold themselves accountable but also create an environment where their entire office can be held to the same standard. Clients can report questionable behavior directly to SIOR, which offers a more streamlined and impactful way to address issues than traditional reporting methods.

‍My Personal Journey with SIOR

‍When I reached my five-year milestone as a commercial real estate broker, I submitted my application to SIOR. Despite meeting all the technical qualifications, I was initially advised by a chapter member to wait. He explained that the chapter members had not had enough interaction with me to vouch for my adherence to SIOR’s high ethical standards.This feedback motivated me to much more intentionally build trust and establish meaningful mentorships and relationships in the industry. When I reapplied a couple of years later, I was accepted. This process taught me that SIOR cares deeply about upholding a high standard of excellence and protecting the reputation of its members.

‍Why SIOR Matters 

‍Hiring an SIOR member is hiring the entire community of top commercial real estate brokers professionals who are time-tested, top performers, and deeply committed to ethical business practices. These brokers are part of an elite group that represents the top 10% of commercial real estate professionals worldwide.At Prescott, we seek out this accountability ourselves. We are committed to doing business in an open, transparent way that makes us a joy to work with and leaves the commercial real estate world better than we found it.

If you have projects in the Greater Boston area and are looking for a commercial real estate broker, please reach out to us at (617) 340-3332 or email help@prescottadvisory.com

So, the next time you’re considering hiring a commercial real estate agent, pay attention to those letters at the end of their name, and make sure they include S-I-O-R.