Realtors who practice commercial real estate have reported an increase in annual gross income for the third year in a row, signaling the market is on the road to recovery. According to the National Association of Realtors 2013 Commercial Member Profile, transactions and sales volume have also increased since last year.
The study shows median annual gross income for 2012 was $90,200, an increase from $86,000 in 2011 and is at its highest level since 2008. Brokers and appraisers reported the highest annual gross income while sales agents reported the lowest.
The study’s results represent Realtors who practice commercial real estate; these NAR members conduct all or part of their activity in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.
“The commercial market is showing signs of improvement, which is reflected in the positive trends in income, transactions and sales volume reported by our Realtor commercial members,” said NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif. “This is a hopeful sign for the future. Realtors who practice commercial real estate build communities by facilitating investment and promoting the sale and lease of commercial space. There’s no doubt that commercial market improvements will help spur economic recovery and growth for our nation.”
Commercial members completed a median of eight transactions in 2012, up from last year. The median sales volume also increased from last year and was $2,507,700. Brokers typically had higher sales transaction volumes than agents. The median dollar value of sales transactions was $433,600 and the median square footage was 10,400.
Similar to the median sales volume, the median lease transaction volume increased this year by more than $70,000. In 2012 commercial members reported a median lease transaction volume of $476,400. Twenty-one percent of commercial members did not have a leasing transaction in 2012. The median dollar value of lease transactions was $169,100 and the median square footage was 4,200.
Commercial members who manage properties typically managed 40,000 square feet, representing 15 total spaces. They also typically managed 16,000 total office square feet, representing six total offices.
A majority of commercial members, 63 percent, reported they derive more than half of their annual income from the real estate industry. Thirty percent of respondents did not derive any income from commercial real estate leasing in 2012. Only 32 percent derived at least half to all of their income from leasing property. A large percentage, 85 percent, of commercial members earned at least some personal income from commercial real estate investments.
Sixty percent of NAR’s commercial members are brokers. Licensed sales agents were the next largest segment at 25 percent. Most commercial members reported working in a firm that is local and 58 percent work within an office that has a mix of commercial and residential brokers and agents.
Investment sales proved to be the most popular business specialty among commercial members. Identified by the highest proportion of members as their primary business specialty, investment sales was also the top ranked secondary specialty area. Land sales and retail leasing followed closely behind.
The typical commercial member has been in commercial real estate for 15 years and involved in real estate in some capacity for 25 years. The median length of membership in NAR among commercial members was 17 years. With a median age of 59, commercial members are also predominately male. However, women are slowly coming into the business; 33 percent of those with two or fewer years’ experience are female, and sales agents have the largest representation of women with 29 percent.
The NAR 2013 Commercial Member Profile was based on a survey of 1,796 commercial practitioners. Income and transaction data are for 2012, while other data represent member characteristics in 2013.
The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Related Stories
Multifamily Housing | Aug 4, 2022
Faculty housing: A powerful recruitment tool for universities
Recruitment is a growing issue for employers located in areas with a diminishing inventory of affordable housing.
Multifamily Housing | Aug 3, 2022
7 tips for designing fitness studios in multifamily housing developments
Cortland’s Karl Smith, aka “Dr Fitness,” offers advice on how to design and operate new and renovated gyms in apartment communities.
Building Materials | Aug 3, 2022
Shawmut CEO Les Hiscoe on coping with a shaky supply chain in construction
BD+C's John Caulfield interviews Les Hiscoe, CEO of Shawmut Design and Construction, about how his firm keeps projects on schedule and budget in the face of shortages, delays, and price volatility.
Codes and Standards | Aug 3, 2022
Some climate models underestimate risk of future floods
Commonly used climate models may be significantly underestimating the risk of floods this century, according to a new study by Yale researchers.
| Aug 3, 2022
Designing learning environments to support the future of equitable health care
While the shortage of rural health care practitioners was a concern before the COVID-19 pandemic, the public health crisis has highlighted the importance of health equity in the United States and the desperate need for practitioners help meet the needs of patients in vulnerable rural communities.
Reconstruction & Renovation | Aug 3, 2022
Chicago proposes three options for Soldier Field renovation including domed stadium
The City of Chicago recently announced design concepts for renovations to Soldier Field, the home of the NFL’s Chicago Bears.
Codes and Standards | Aug 2, 2022
New tools help LEED projects reach health goals
The U.S. Green Building Council now offers tools to support the LEED Integrative Process for Health Promotion (IPHP) pilot credit.
Market Data | Aug 2, 2022
Nonresidential construction spending falls 0.5% in June, says ABC
National nonresidential construction spending was down by 0.5% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
K-12 Schools | Aug 1, 2022
Achieving a net-zero K-12 facility is a team effort
Designing a net-zero energy building is always a challenge, but renovating an existing school and applying for grants to make the project happen is another challenge entirely.
Healthcare Facilities | Aug 1, 2022
New Phoenix VA outpatient clinic is one of the largest veteran care facilities in the U.S.
The new Phoenix 32nd Street VA Clinic, spanning roughly 275,000 sf over 15 acres, is one of the largest veteran care facilities in the U.S.
