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
Healthcare Facilities | Jun 20, 2022
Is telehealth finally mainstream?
After more than a century of development, telehealth has become a standard alternative for many types of care.
Building Team | Jun 20, 2022
Andres Caballero Appointed President of Uponor North America
Uponor Corporation (Uponor) has named Andres Caballero president of its Building Solutions – North America division and a member of the Executive Committee at Uponor.
| Jun 20, 2022
An architectural view of school safety and security
With threats ranging from severe weather to active shooters, school leaders, designers, and security consultants face many challenges in creating safe environments that allow children to thrive.
School Construction | Jun 20, 2022
A charter high school breaks ground in L.A.’s Koreatown
A new charter school has broken ground in Los Angeles’ Koreatown neighborhood.
Building Team | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Sports and Recreational Facilities | Jun 17, 2022
U. of Georgia football facility expansion provides three floors for high-performance training
A major expansion of the University of Georgia’s football training facility has been completed.
Building Team | Jun 16, 2022
Hybrid work expected to reduce office demand by 9%
Businesses are slowly but consistently transitioning to a permanent hybrid work environment, according to a senior economist at Econometric Advisors.
Building Team | Jun 16, 2022
USGBC announces more than 23 million square feet of LEED certified net zero space
Today, the U.S. Green Building Council announced nearly 100 net zero certifications earned under the LEED Zero program, representing more than 23 million square feet of space.
AEC Business Innovation | Jun 15, 2022
Cognitive health takes center stage in the AEC industry
Two prominent architecture firms are looking to build on the industry’s knowledge base on design’s impact on building occupant health and performance with new research efforts.
Market Data | Jun 15, 2022
ABC’s construction backlog rises in May; contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
